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Sales Jargon

Survey

There are 3 different types of survey and which one you
will require will depend mostly on the type of property you
are buying. For newly or recently built properties your
lender will usually conduct a Mortgage Valuation. This
usually entails a short visit to the property by a surveyor
working on behalf of the lender to check that the money
they are lending is the correct amount. A Homebuyers
Report is often helpful if you are buying an older property
or an apartment that is in an older building, like a
warehouse conversion. This will go into more detail than
a Mortgage Valuation and will highlight any work you
might expect to have to do in coming years. It costs more
money but does offer peace of mind. Finally there is
a Full Structural Survey which you would probably be
advised to undertake if you were purchasing an older
house (as opposed to an apartment) or an entire
building.

Title Deeds

Title deeds are the legal documents that show who is the
official owner of a property or piece of land. Title deeds
will also disclose if there is a mortgage on the property
and any restrictions such as access or other rights that
might be excluded from the property

Indemnity Insurance

This is often taken out to cover anything that's not
covered by buildings insurance.

Service Charge and Ground Rent

Ground rent, applicable to leasehold properties, is an
annual payment to the freeholder. This can vary from 50
to 400 and will over time increase. Service charges are
an annual amount payable to the agents who manage a
block of apartments. Your solicitor will inform you what is
covered by the charge, but it usually includes
maintenance of communal parts and building insurance.
Sometimes a 'sinking fund' will be in place. This would be
money set aside for any emergency work that might
arise.

Retention

If you are selling a property, it might be necessary for you
to leave some money with your solicitor to cover any
charges that still owe once you have moved. This could
be monies for outstanding service charges or some
scheduled work that you have made use of but not paid
for; improvements in the block or general maintenance
work. Don't be put out if a buyer’s solicitor requests this.
As long as the amount is reasonable, it's quite usual for
this to happen with leasehold and share of freehold
properties. If none of the money is used, your solicitor
will return the money to you after the accounts are
reconciled.

NHBC Certificate

A National House Building Council Certificate is an
industry recognised standard for new build houses and
apartments. It will provide a 10 year guarantee against
any structural defects. In order to comply with NHBC
regulations developers will entail an inspection
throughout the build process to ensure that the build
meets satisfactory standards and quality. If you are
buying a property that was built of converted more than 5
years ago, it will not necessarily have an NHBC
certificate. You should, however, look out for some other
type buildings insurance.

Completion Date

The date upon which the sales process is finalised and
keys can be handed over to the new owner.

Managing Agents

A third party property manager responsible for the
maintenance of a residential or commercial block.