Buying a property and moving home can be difficult enough even if you have done it before, so you don't want to be confused by the terminology and abbreviations used during the process. Here's our simple guide to beating the jargon:
CHAPS.
Stands for Clearing House Automated Payment System. A telegraphic transfer through which the mortgage advance is sent to the conveyancer.
Completion.
The point at which the money is released to remortgage your home or to buy your new home. Your Conveyancer will ensure that ownership is transferred to you enabling you to move. This is known as Settlement in Scotland.
Conclusion of Missives.
The point at which both buyer and seller are legally bound to the purchase (Scotland only).
Conveyance.
The legal document which transfers ownership of unregistered freehold land in England and Wales (see freehold).
Dematerialisation.
Up to October 2003 the main title deed for registered land (the land on the Charge Certificate) was held in traditional paper form. The Land Registry has now 'dematerialised' the paper deeds and the evidence of title to the property is held electronically at the Land Registry. Some lenders have opted for 'full' dematerialisation and hold little or no title documentation of any kind in paper form any more, with most original documents being returned to the borrowers. We have taken this approach.
Disbursements.
The fees your solicitor has to pay to others on your behalf (e.g. Stamp Duty Land Tax, Land Registry fees,search fees).
Discharge Fee.
A fee charged by the lender for releasing the legal charge over your property following repayment of a mortgage.
Equity.
The positive difference between the value of your property and the amount of any outstanding loans secured against it (ie the amount you own outright).
Lease.
A document which grants possession of a property for a fixed period of time and sets out the obligations of both parties, landlord and tenant, such as payment of rent, repairs and insurance.
Loan.
Sometimes called the advance. This is the actual amount of money that we agree to lend you.
Missives.
The formal written offer to purchase and the acceptance (Scotland only).
Searches.
For example, enquiries made at the Land Registry, the Land Charges Register and local authorities to ensure there is nothing to cause concern about the property.
Stamp Duty Land Tax.
A government tax on the price you pay for your home on properties currently above £120,000. This is generally payable by you the purchaser.
Subject to Contract.
A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty (England and Wales only).
Term.
The length of time over which your mortgage loan is to be repaid.
Title.
The legal right to ownership of a property.
Title Deeds.
The documents showing the ownership of property.
Transfer Deed.
The legal document which transfers ownership of registered land.