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GLOSSARY
Joint agency
A situation where two agents are acting, the commission being apportioned as agreed by the seller and joint agents.
Joint Application
A mortgage application that involves more than one person as the borrower.
Joint Income
The total gross income of the two borrowers in a joint mortgage.
Joint Liability
Two people who are responsible for a loan or debt.
Joint Sole Agency
A situation where two agents are acting as sole agents, the commission being divided equally, no matter who sells the property. See also Multiple agency
Joint tenants
A form of ownership where two or more people holding property as co-owners, whereby if one of them dies, his share of the property automatically passes to the survivor(s) giving them full ownership (regardless of the terms of the deceased owner's will). See also Tenants in common
Key Fact Illustration (KFI)
A document setting out the costs of a particular mortgage for a potential borrower showing the monthly payments.
This document also clearly shows how much we are being paid for arranging the mortgage and goes into great detail about how changes on interest rates may affect you. This is provided to you before you complete the mortgage application form and incur any expense.
Key Features Document (KFD)
A document summarizing the key features, terms and procedures pertaining to a protection policy, such as cover details, information on how to make a claim and contact details.
Land certificate
A certificate issued by the Land Registry as proof of ownership.
Land Registration
The process of registering your title to an area of land with the Land Registry, typically handled by a solicitor.
Land Registry
A Government department where details of properties with a registered title are recorded along with any charges e.g. mortgages.
Land Registry Fee
A fee payable to the Land Registry to register ownership of a property or just a change of mortgage.
Landlord's Reference
A reference given by a previous landlord, which confirms an applicant's history of payment of rent and previous conduct as a tenant.
Late Charge
A fee the lender imposes for receiving payments late.
Late Payment
A payment a lender receives after the due date has passed.
Lease
Ownership of property by which the freehold (or leasehold) owner of a property lets the premises or a part of it to another party for a specified length of time, after the expiry of which ownership may revert to the freeholder or superior leaseholder, usually with an annual ground rent.
Leasehold (England & Wales only)
A type of ownership in which a person owns a property, but not the land on which it is built. Typically the land will be leased to the owner for a fixed period. Usually a leasehold property is a flat or maisonette, although in some areas conventional houses and bungalows of a leasehold tenure exist.
Legal Charge
A document held by the Land Registry detailing who had first claim on your property. Typically the owner will have first claim. There are various different types of legal charge and the type used will vary from lender to lender. A primary mortgage will normally be secured by a first charge.
Legal Completion
See Completion
Legal Fee
Fee charged by a solicitor.
Legal Mortgage Fee
The fee charged by the solicitors acting for the lender in creating their legal charge over the property.
Lender
An organisation, typically a bank, building society or mortgage company, which offers mortgage products.
Lender's Arrangement Fee
Fee for arranging a loan passed on by the buyer to the lender.
Lender's Fee
See Lender's Arrangement Fee
Lender’s legal fees
See Lender's Arrangement Fee
Lessee
Person to whom the lease is granted.
Lessor
An individual or company who grant a lease- the landlord.
Letting Agent
A property agent who can help landlords locate suitable properties for purchase, and who finds tenants to occupy those properties and can manages the rental process which follows.
Level Term Assurance
A life insurance policy that pays out a lump sum should the borrower die during the term of a mortgage. Level term refers to the fact that this sum will remain constant throughout the term of the mortgage.
Liabilities
Debts and outgoing payments that you are legally responsible to pay.
LIBOR
London Inter Bank Offer Rate is the rate at which banks nationally buy and sell money to each other. It varies from day to day and is closely linked to base rate.
LIBOR Linked Mortgage
A tracker mortgage that tracks LIBOR. The rate for this kind of mortgage is normally quoted as an amount above LIBOR. Although the LIBOR rate changes regularly the pay rate for a LIBOR linked mortgage will normally only be adjusted every three to six months.
Lien
The legal right of one person to hold the property of another as security for a debt.
Life Company
A life assurance company.
Life Insurance
An insurance policy that pays a lump sum in the event of the death of the policyholder, usually referred to as assurance.
Listed building
One officially listed as being of special architectural or historic interest, which cannot be demolished or altered without (local) government consent.
Loan
The amount to be borrowed.
Loan Application
Form you fill out to apply for a loan.
Loan Application Fee
Lenders fee for a loan application.
Loan Consolidation
A large loan is taken to help pay for smaller loans held elsewhere. See Debt Consolidation
Loan Illustration
Is the example of the monthly cost of a mortgage and other expenses associated with the loan such as set-up costs. See Illustration
Loan to Value (LTV) Ratio
The size of the mortgage expressed as a percentage of the value of the property. For example a mortgage of £90,000 on a property valued at £100,000 would be shown as 90% LTV.
Local Authority Search
A search of local authority records to confirm the status of the property, carried out by a purchaser's solicitor. Local authority searches should reveal any proposed changes in the area, the details of the planning permission for the subject property and whether any enforcement notices have been served by the local authority.
Local Authority Search Fee
The fee payable to the Local Authority for conducting a Local Authority Search.
Local Search
See Search.
London Inter Bank Offered Rate (LIBOR)
The interest rate at which banks in London buy and sell money between each other.
Loyalty Bonus
A concessionary bonus (usually by way of a temporary reduction in interest) payable for maintaining a satisfactory account with a lender for a period of years. Alternatively, loyalty bonuses may be offered to existing customers who return to the lender for a new mortgage. In which case the bonus may be dealt with by way of a reduction in the set-up costs of the new loan or a lump sum payable upon completion.
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