Legal Jargon

A way of holding jointly-owned property so that on the death of one of the owners, their interest in the property passes to the beneficiaries of their will or, in the case of intestacy, be settled through probate. A separate document known as a declaration of trust should be drawn up to stipulate the share of the value of the property owned by each party.

A planning obligation entered into by a developer in order to secure permission for a development. These often, but not always, contain affordable housing provision and/or contributions by the developer towards, for example, local infrastructure, education and healthcare provision.

A payment required by a landlord or managing agent of a leasehold property to cover the cost of insuring and/or maintaining a development or block of which the property forms a part. Most newer freehold properties on an estate are also subject to a service charge payable for amenity areas on the estate.

A search to see if a property is affected by the naturally occurring radioactive gas radon, which, if found above the safe level, may require preventative action such as enhanced ventilation.

The repayment of an existing mortgage or a loan.

A charge levied by a lender on the early repayment of a loan. Redemption penalties are common in mortgage loans and must be specified in the mortgage offer before it is signed. Lenders expect to make a certain level of profit on their loans through the interest they charge. If a loan is repaid early, it means that interest will be charged for a shorter period and the loan will be less profitable for the lender. Redemption penalties may also be charged on overpayment of mortgages i.e. when a borrower overpays their monthly mortgage payments beyond a specified level, usually 10%.

Property that has been registered at the Land Registry.

Paying off one mortgage loan and taking out another, usually with a different lender, on the same property. Property owners often remortgage to take advantage of a change in interest rates or when a period of discount/fixed rate comes to an end.

A modest rent that levied on some freehold properties by the original landowner, for example a landowner who has sold land to a developer. Rentcharges are sometimes created simply to generate profit but may be used as a way to ensure requirements about the property are complied with. Rentcharges extinguish automatically on 21st July 2037 or 60 years from the date of which the Rentcharge first became payable, whichever is later. However, under the 1977 Rentcharge Act, property owners can buy out or redeem the Rentcharges attached to their property.

An initial payment to a builder or developer or their agent to reserve a new-build property.