Terms a First Time Buyer Should Know
There are many terms commonly used in the estate world. Not everyone however, knows what each term means. This can be rather overwhelming, especially if you are considering, or are in the process of purchasing a house. This article aims to mention and discuss all the terms commonly used in the world of home purchasing. This way, you can familiarise yourself with them and know exactly what all the professionals are talking about. You may find yourself in a “chain”. This means that the owners of the house you wish to purchase are waiting for the owners of the house they wish to purchase to move out, who are then waiting for the owners of the house they wish to move it, thus creating a chain. Another term many people do not know the meaning of is the word conveyancing. This word is often used by lawyers and solicitors. Conveyancing is the transfer of property from one person to another. Lucky enough, you do not have to deal with this yourself, since your lawyers will take care of this. Another word which is commonly used is the word deeds. The deeds are very important documents that confirm your ownership of the house or building. These documents should be kept safe (many people decide to keep these at the bank because they are such important documents).The overall value of the building without taking into consideration any debts or mortgages on it is known as its equity. It is worth to keep an eye on a property’s equity at all times. The terms leasehold and freehold are amongst the most common terms used in the world of estate agents. They are very important terms, but are also often misunderstood. A freehold property will mean that you will be rightful owner of the property and the land that it stands on. A leasehold property merely is yours to live in since you have no ownership, but mere permission to lease the house and land that it stands on for a period of time (this is usually 100 years). Stamp duty is something that has to be paid if you are purchasing a house that costs more than one hundred thousand pounds. This is basically tax that is paid for the land that the house stands on. This money will go to the Inland Revenue, but this is once again handled by lawyers and solicitors. You may need a mortgage to pay for your house. A mortgage is a special loan given to buyers for the sole purpose of purchasing a house. It can be obtained from banks, building societies and many private lenders. In some cases, you may need a guarantor to get a mortgage or purchase a house. A guarantor can be someone you know professionally or even personally. A guarantor’s job is to take responsibility for you and confirm to the banks etc. that you are a responsible person who will be able to pay back the mortgage etc. If you fail to make payments, then the burden will fall on them and they will have to pay on your behalf. Disbursements are fees that are paid by your lawyers in order to have your desired property checked out in terms of stamp duties etc. You will have to pay this fee back to them, so do not be alarmed if you find this on your invoice. These are some of the most commonly used terms in the estate world. Familiarising yourself with these will ensure that you understand everything that is being said to you.