Seddon Homes — a glossary of terms
Posted on April 7th, 2017If you’re new to the property world, or even if you’re not, there can be a number of terms that you think you should know, but do you? Let’s help you clear up understand 26 of the most common property terms you’re likely to hear whilst purchasing.
Annual Percentage Rate of Charge — This is essentially how much interest you will be charged over the duration of your mortgage period.
Balance Outstanding — The amount of your mortgage loan that is owed at any time.
Covenant – This is a rule or condition that can be found in your Title Deeds which usually applies to you, when you purchase, and to future owners of the property.
Disbursements — Additional fees such as Stamp Duty which are usually paid via your solicitor.
Equity — Ah, equity, the difference between the amount remaining as owed on your mortgage and the value of the property. Help to Buy includes an “equity loan”, more of which can be found here.
Freehold — Ownership of both the property and the land it is constructed upon.
Ground Rent — This is an annual fee leaseholders pay to the owner of the freehold.
Housing Association — A private organisation who allows you to buy a percentage of your property whilst paying rent on the outstanding amount. You can find our Shared Equity properties in Sandbach here.
IFA — Independent Financial Advisor. We offer the services of an IFA when you purchase your home using our Deposit Builder scheme, and at all times of your purchase with us.
Joint Mortgage — This is where more than one person is named as responsible for the mortgage on your home.
Kitchen — Well, we couldn’t find any tough property terms beginning with k, so we thought you may like to know that all of our kitchens are rigid built as standard in all of our new build homes 😊.
Leasehold — This is where you own a property, but not the ground it is constructed upon. Leasehold property owners are usually required to pay a ground rent to a landlord or freeholder.
Mortgage Deed — This is a legal document for mortgage lenders which identifies a lien on the loan they are providing.
Negative Equity — When the mortgage owed is more than the value of the property.
Offer — This is when someone may suggest a price for your home and it is not legally binding.
Part-exchange — On a number of our developments we may offer to part exchange your current home against the one you are looking to buy. To find out more on this, please visit our part exchange page here.
Quality — Another letter which we have struggled to find a suitable term for. What we can tell you about though is the quality and attention to detail that goes into constructing one of our new homes. We assure each and every customer that their new home will receive the highest build quality possible when they purchase a Seddon home.
Repayment — Repayment is something you have to do on your mortgage. As long as you can keep repaying your mortgage, you can continue living in your home until you have nothing left outstanding. At this point, you will own 100% of your home.
Stamp Duty — This a tax that is paid to the Government upon the completion of your home
purchase.
Transfer Deeds — This is the legal document which allocates the ownership of your new home from us to you.
Under Offer — This is sometimes known as a Reservation, where we have agreed and accepted your offer but are waiting to exchange contracts.
Vendor — We, Seddon Homes, are the vendor of your new home as we are the sellers in the transaction.
Warrington Property Shop –For some of our newer developments, we don’t yet have sales offices on site. In this instance, you can come to our Warrington based Property Shop to discover more about your chosen development.
eXchange — In truth, not a great deal begins with X but when we exchange contracts the deal becomes legally binding.
Years — We’ve included years as you will pay your mortgage back over a number of years as agreed by your lender. Because of this long term agreement, home owners typically save more money per month than renters.
Zero % interest — This is the level of interest you receive on the first 5 years of the Government backed Help to Buy scheme, to assist you financially whilst you purchase your new home.
After reading this concise list of terminologies used within the property world, you should now have a slightly clearer understanding of what our sales advisors mean as they start you on your customer journey. If you haven’t yet visited one of our developments, you now have an arsenal of terms that will allow you to discuss your needs and will know exactly what you’re talking about!
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