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Glossary of Terms
Abstract of Title
Is a summary of all official records which relate to a property. The Abstract of Title will in sequence show all legal owners that have been the recorded owners of a given property.
Accelerated Possession
is a process that enables landlords to regain Possession of properties let on assured shorthold, providing all the necessary procedures have been complied with.
There will not usually be a court hearing on an application under the accelerated possession procedure, unless the court is not satisfied that all matters have been complied with or if the tenant asks for a postponement of possession on the grounds of exceptional hardship.
A possession order will usually take affect immediately, unless the court is satisfied the tenant has made out a case for exceptional hardship, in which case possession can be delayed for up to 6 weeks.
Acre
Is a measurement of land equal to 43,560 square feet.
Additional Security Fee?s
An up-front, one off fee paid to the lender to protect them against the borrower defaulting on the loan. Usually, charged on mortgages over 75% of the house value. Also known as MIG, Indemnity Guarantee premium and Mortgage Indemnity Premium.
Advance
In Mortgage terms, the Advance is the payment of the actual funds to the borrower.
The Term Advance is derived from the fact that the Lender is giving money in Advance of Repayment.
Adverse Credit
Adverse Credit is simply an alternative Term for Bad Credit and is mainly used in more formal financial documents.
Agents
(See Estate Agents)
Applicant
A term frequently used in estate agency for people registering an interest in purchasing property.
APR
APR, or the Annual Percentage Rate, is a measure of the true cost of a loan or other finance. As well as measuring the amount of interest charged, the APR figure includes any other additional costs involved - e.g. arrangement fees etc.
APR is used to accurately compare loan products from different companies, where although the main interest rates may be the same, the real cost (and thus the APR) may vary.
Arrangement Fee
The fee charged by lenders for setting up the loan. Normally payable upon completion but may sometimes be added to the loan. This fee can also be known as a booking fee or even application fee.
Arrears
Arrears means that you have missed one or more Repayments on a loan or Mortgage, but have not yet defaulted on your loan.
Arrears are a factor in having a Bad Credit rating, but are not as serious as Defaults or CCJs.
Assent
Documentary evidence that a person has come into ownership of an interest in land (land and property) by inheritance, rather than by purchase.
Assign
The transfer of ownership of a property from one person to another. The ?item? may be tangible or intangible - for instance the benefit of a contract can be assigned from one of the contracting parties to another (unless the contract forbids assignment).
ASU Insurance
An insurance policy which pays out an income if the policyholder is unable to work as a result of accident, sickness or unemployment. There is usually a time period before any claim can be made and a limit on the number of payments (typically 12 months). Often used to protect mortgage payments.
Auctions
A public sale in which property or items of merchandise are sold to the highest bidder.
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