Legal Jargon

A document from the lender (usually a bank or building society) that sets out the terms against which the lender is prepared to make a loan, including the specific financial details and the period of repayment.

The length of time agreed for the repayment of a loan secured on a property.

The lender who lends a sum against the value of a property and who benefits from the mortgage security. This is usually a bank or building society.

The person or entity borrowing money from the mortgage lender and who is named on the mortgage deed.

In a mortgage-funded property purchase, any person who lives at the property but is not an owner, and will not therefore be signing the mortgage deed, will be asked to consent to the mortgage being taken out and agree to move out if the mortgagee lender repossesses the property following the owner defaulting (failing to pay) on the mortgage.

Overriding interest is an English land law concept that allows certain interests in a property to be binding on any new owner, even though they are not registered with the Land Registry, as is usually required. Examples of overriding interests could include tenancies of less than seven years, rights of occupation for people who are in occupation but might not be aware of their rights, public rights of way where it is not clear who would have had responsibility for registering them, and rights to light or physical support from adjacent buildings.

A party wall is a wall that stands astride the boundary between two neighbouring properties and that is owned jointly by both. Repairs and maintenance of party walls are typically the joint responsibility of both neighbours, usually at equal expense. They usually form part of the structure of both properties, though party fence walls may simply serve as dividing walls between adjacent pieces of land. Walls that stand wholly within one owner’s property but which serve to mark the boundary between two adjacent properties may also be identified as party walls. Any works to a party wall should be carried out in compliance with the Party Wall Act 1996.

The bank, building society or other person or company that lends money to the buyer / owner of a property or other asset.

The present owner of a leasehold property. The interests of the freeholder or landlord are subject to the lessee’s rights under the lease until the lease term has come to an end or they sell their leasehold.

A scheme that allows you to borrow against the value of your home to release funds which can be used to provide an income, a lump sum, or both. The loan does not have to be repaid until you die or move to alternative accommodation. Interest, usually levied at a fixed rate, is “rolled up” on a monthly basis and added to the outstanding loan.