A-Z Jargon-Buster (Part Two)
Part two of our A-Z Jargon-Buster starts with the letter
First-time buyer – this relates to anyone who has never purchased a property before and can often take advantage of mortgage deals or government help to allow them to step onto the property ladder.
Freehold – this means the owner has the right to live in the property and also occupy the land that the home is built on. This is different from a leasehold where the landlord or freeholder of the property allows you to occupy that property and land for a set period, this can be up to 99 years
In this instance, the resident will have to pay maintenance fees and ground rent.
Guarantor – a more common arrangement for first-time buyers when either a parent or guardian agrees to meet the monthly payments when you are unable to.
Holding Deposit – after the exchange, the buyer will pay a specific amount of money to the sellers solicitor, this is usually a percentage of the purchase price. This will demonstrate to the seller’s solicitor that they definitely intend on buying the property, however, this is not always required.
Incentives – this refers to any help offered to help you secure your purchase in way of moving costs or mortgage Cashback deals. These are usually detailed at the time of viewing the property.
Joint-mortgage – this refers to a mortgage taken out by two people in order to purchase the property. This can be a partner, friend, or even a parent helping their children to step onto the property ladder.
Local Authority Search – it is a legal requirement for your solicitor to raise a local search to ensure that nothing identified will affect the value of your new property, such as any mining or water concerns to the local environment.
Our next jargon-buster article will cover from the letter M so join us again for more simplification on the terminology used when buying a home.
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