Property Jargon Part 6
We’re back with the latest instalment to our Property Jargon series! This week, we are here to help you understand the property terms beginning with P through to S:
Penalties – The costs that can occur if a borrower repays all or part of a mortgage before the end of an agreed period or changes lender.
Preliminary Enquires – This are the first enquiries raised about a property being sold by the conveyancer which the seller must provide an answer to before exchange of contracts.
Premium – The monthly amount to be paid for the insurance policy
Principle – The sum of the loan on which interest is calculated
Public Liability Insurance – This is insurance that covers the injury or death of anyone on or around your property
Purchaser – Anyone buying a property… could this be you? Check out our developments here!
There are currently no terms beginning with Q! Can you think of any? Please leave your suggestions in the comments.
Redemption – This happens when a mortgage is fully repaid
References – To confirm the information you have given on your application form is correct, your lender will ask for reference from your employer.
Release Fee – This is a fee that is charged by lenders for the work involved in releasing their charge on your property, when you fully repay your loan.
Remortgage – This is the re-financing of a property either by changing lenders or taking our a second mortgage to draw on the equity that may have been gained by the rise in capital value of the property.
Repayment Mortgage – A mortgage is made up of two parts – the capital (the amount of money borrowed) and the interest you pay on the capital. The mortgage payment covers the interest due plus repayment of part of the capital each month. At the end of the mortgage term, the full amount that you borrowed should now be repayed.
Repossession – If you fail to make payments on your mortgage, the lender could take possession of the property.
Retention – This is when the lender retains part of a loan until repairs or work to the property has been completed.
Security – If you cannot keep up your mortgage repayments, this is the property the lender can sell to repay the loan.
Semi-detached – A property that is joined to one other house – like our Arrochars!
Solicitor – A legal expert who handles the documentation of a sale or purchase of property.
Stamp Duty – This is the tax that must be paid by the buyer for a property that exceeds the purchase price of £125,000. It is known as LBTT (Land and Building Transaction Tax) in Scotland.
Standard Variable Rate (SVR) – The interest rate charged by lenders.
Subject to Contract (STC) – This is the term that is used to confirm that a transaction is not legally binding.
Surveyor – A professional expert who carries out an instructed survey on a property.
Do you feel more clued up on your property jargon now? You can learn more by reading Part 1, Part 2, Part 3, Part 4 and Part 5!