Bridging Loan
A short term loan to complete the purchase of a property
while the buyer is waiting for the sale of his home to go through.

Collateral
Property pledged as a guarantee for the repayment of money.

Completion
All monies transferred, pick up your keys!!

Equity
The net value of a mortgaged property after the mortgage owing has been deducted.

Exchange of contracts
Contracts have now been exchanged via solicitors and are legally binding. Deposit monies have been transferred.

Ground Rent
Periodical payment required under the terms of a lease.

Home Information packs (HIPS)

As from 1/8/2007 all properties having four bedrooms or above must have a Home Information Pack which contains legal documents for the sale and the vendor must have an energy assessment carried out.

As from 10/9/2007 all properties having three bedrooms must have a Home Information Pack as above. A property cannot be marketed until the HIP has been carried out. Please contact Kelly Homes for further information where we will be happy to help. 

Joint tenancy
Where two people eg husband and wife hold half shares in a property and if one dies the survivor takes all.  

Land registry fees
Fees paid by the buyer to register evidence of ownership with the Land registry. There is a scale of fees set by the government.

Lease
Possession of property for the length of time fixed in the lease. This usually includes payment of an annual ground rent.

Leasehold
Land held under a lease for a fixed number of years.  

Mortgagee
The person/organisation to whom the property is mortgaged eg bank or building society.

Mortgagor
The person mortgaging his or her property as security ie the borrower.  

Principal
The amount of the loan on which interest is calculated.

Redemption
The final payment of a mortgage. Some building societies make a charge called a redemption fee if a mortgage is ended earlier than was first agreed. 

Sold subject to contact
A stage in the process of purchasing when either party may withdraw without incurring fees.

Survey
Inspection of the property by an independent surveyor usually on behalf of the purchaser.  

Under offer
When the vendor has received an offer on his property but contracts have not yet been exchanged.