Grosscurth & Company
Wirral, Merseyside and Cheshire Residential Conveyancing Solicitors.
Technical Terms Explained
1 Completion/Moving Date
This is the day that you gain ownership of the property.
The seller and the buyer should discuss and come to arrangements for the completion/moving date. We will always try to fit in with your requirements. If there are unforeseen circumstances then it might be necessary to revise the completion/moving date. This date is fixed once contracts are exchanged.
It is not necessary for you to be present at the completion but if you intend to be out of the Country then it would be a good idea to appoint a relative or trusted person as your Attorney by entering into a formal Power of Attorney. This would allow them to act on your behalf if necessary.
2 Contract
The contract is an agreement between the buyer and seller. Once agreement has been reached the contracts are exchanged and a completion/moving date inserted. You then have to move on that date.
3 Exchange Contracts
This is an important event in the process. Once the contracts are exchanged then the buyer must buy and the seller must sell.
4 Freehold
When the property and the land is owned by the same person it is said to be "Freehold".
5 Land Registry
The Land Registry is a Government body that holds records of land ownership and the terms of that ownership.
6 Leasehold
Ownership of the building but not the land it stands on.
7 Local Authority Search
A Local Authority Search will show, amongst other things, if the property has Planning Permission and various other information of relevance to the property you are purchasing.
8 Mortgage
The mortgage is the loan you take out for the purchase of the property.
You cannot sell your home without paying off the outstanding mortgage on the property.
You should be aware that it is possible that under the terms of your mortgage you might have to pay a penalty charge for paying off your mortgage early. Your Solicitor will contact your Mortgage Company early in the transaction to confirm the loan status.
9 Mortgage Deed
The legal charge of the property to the Mortgage Lender – until such time as the mortgage is repaid.
10 Redemption
The final repayment of a mortgage loan.
11 Redemption Fee
Sometimes you may face a penalty charge for early repayment.
12 Stamp Duty Land Tax
This is a Tax charged by the Government on properties with a purchase price exceeding £120,000. It is paid by the buyer. Certain designated areas are exempt from Stamp Duty Land Tax on purchase prices up to £150,000 but you should enquire from the Seller/Estate Agent if the property you are purchasing qualifies.
13 Valuation and Survey
A Valuation/Survey is carried out by the Building Society for their own purposes. It is carried out on the property’s structure. You should be aware that propertys are sold as seen and purchased at the Purchaser’s own risk. A Valuation/Surveyors Report carried out by a Building Society should identify any potential pit falls but we recommend that you at least obtain your own Homebuyers Survey on all purchases.
14 Title Deeds/Record of Ownership
The Title Deeds/Record of Ownership confirm that the person selling the property is in fact the owner and has the right to sell the property and are either a conventional bundle of Deeds if the property is unregistered or information from the Land Registry if the property is registered.
After purchase, as all areas of the country are now subject to Compulsory Registration, your ownership is registered at the Land Registry.