Jargon Buster

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Term Definition
Legal Fees
Fees charged by a solicitor or other qualified individual to carry out the legal work associated with buying a house.
Company or person who lends you money for a agreed time period. There will normally be interest charged and they will expect their money back within this period plus the interest.
Let To Buy
Obtaining a mortgage to purchase a new property to move into, whilst a previous property is let out to tenants. Retains original property as an investment with mortgage paid by tenant.
To use a small amount of money to control a large amount of money/asset. In the UK this is normally referred to as Gearing.
The London Inter Bank Offered Rate: the rate at which banks lend money to each other. LIBOR changes daily and a LIBOR linked mortgage will normally be adjusted every three months
Licence to Occupy
A shorter and more simple type of tenancy agreement that a standard commercial lease.

This type of tenancy does not create an interest in the property and so the tenant will have to accept that the Landlord can themselves enter the property at any time. The terms could also be extended to allow the landlord to occupy the property at the same time.
A charge against income or a property making it security for the payment of debt.
Loan To Value
Percentage of the value of a property that will be lent via a mortgage.

Local Housing Allowance
A government benefit that allows tenants fixed amounts to spend on housing dependent upon the local rental market, and permit them to keep any saving or to contribute an additional amount needed according to their choice of properties.

Payments are made direct to tenant rather than the Landlord.
Local Housing Authority
The authority within the local councils that manage the allowances and payments to claimants, along with the waiting lists and allocation of housing.
Local Search
Application to local authority for information about a particular property and its surrounding area which should reveal whether the property is affected by road building or outstanding matters such as sanitary notices
Managing Agent
A person/company appointed to act on behalf of the landlord, usually in collection of rents or maintenance of the property
Mandatory Grounds For Possession
Grounds that may be cited in possession proceedings which, provided the correct procedures have been followed and notices given, require the court to grant possession.

In brief the mandatory grounds cover situations where:
  • the landlord requires the property for personal occupation;
  • a mortgage lender is foreclosing the mortgage;
  • property let for a fixed period is required for return to holiday letting;
  • an educational institution requires return of a student let;
  • a religious body requires return of its property for an alternative tenant;
  • the landlord wishes to demolish, reconstruct or redevelop the property;
  • a landlord wishes to claim possession against the resident heir of a tenant who has died;
  • and the rent is in arrears by eight weeks or more (two months if it is paid monthly, or one quarter if paid quarterly).
Market Value
The value assigned to a property/land as driven by local, national and global economic forces. This is the maximum value a buyer is deemed willing to buy at and the lowest value a selling willing to sell.
Monetary Policy Committee
Bank of England committee that sets UK base interest rates or Repo rate, and a benchmark for other interest rates such as personal loan, mortgage interest rates.

The MPC meets monthly and comprises the Governor of the Bank, the two deputy governors, the Bank's chief economist, the executive director for market operations and four external members appointed directly by the Chancellor.