Home ownership jargon buster

Building insurance

A policy that insures the structure of the building.

CML (Council of Mortgage Lenders) Form

A form that is sent to your solicitor detailing the financial side of the sale and details any incentives included.

(legal) Completion

This is the day the sale goes through and you legally become the shared owner. This date is agreed at the point of exchange of contracts between you and via both solicitors.

If the home you are purchasing is not yet built by this time, completion will be ‘on notice’. This means that once the home is finished we will give you notice to complete your purchase.

Contents Insurance

Insurance to cover any loss or damage to your possessions within the property.>

Contract

A legal agreement between the seller and buyer of a property or land which binds both parties to complete the transaction.

Conveyancer

The term used for either a solicitor or licensed professional who deals with the legal aspects of buying a property on your behalf.

Conveyancing

The legal process where land or property is transferred from one person or organisation to another.

Covenants

Rules and regulations governing the property or land contained in its title deeds or lease.

Deposit

The down payment on a property, usually a percentage of the value of the share being purchased.

Draft Contract

A preliminary unconfirmed version of the contract.

Equity

The difference between the value of a property and the amount of mortgage owed. As a shared owner, this will be based on the share that you own.

Exchange of Contracts

The point in which you are legally bound to buy your property, although you cannot take possession until you reach completion.

Freehold

Technical word for the ownership of a property, meaning it belongs to the owner without limitation of time.

Help to Buy Agent

An agent appointed by the Government to administer their home ownership schemes.

Homes England

This is the Government Agency that oversees the scheme.

(I)FA

(Independent) Financial Advisor – A specialist who is trained to provide advice on mortgage products.

Lease

The formal written agreement between you and bpha that details the ongoing relationship and each party’s responsibilities.

Leasehold

Technical word for the right of use of a property for an amount of time.

Memorandum of Sale

A document sent by us to you, your solicitor and our solicitor providing details of the sale.

Mortgage Lender

The bank, building society or organisation that lends you the money to purchase your home.

Mortgage (agreement) in Principle

This is a document provided by the IFA, bank or building society to inform you that they will lend you an amount subject to a full mortgage application.

Mortgage offer

Once the bank or building society have decided they are happy to lend to you, they will issue a formal mortgage offer detailing all the terms and conditions around your mortgage.

Mortgage Term

The number of years over which your mortgage is to be repaid.

RICS

The Royal Institute of Chartered Surveyors. An external body of which property valuers are qualified members.

Searches

Your solicitor will carry out some searches during the conveyancing process. This is information requested from the Local Authority and other organisations detailing any relevant information around the property you are purchasing.

Service Charge

Service charge is the money you need to pay for things like communal repairs and grounds maintenance.

Staircasing

>Buying further shares in your home. Sometimes this is capped, please ask at the time of reservation.

Stamp Duty Land Tax (SDLT)

A tax paid by purchasers of property. Shared Ownership SDLT can be more complex and this is something that needs to be discussed by buyers and their solicitor.

Valuation

The process in which the sales price is determined by a RICS Surveyor.

Valuation Survey

When you apply to a bank or building society for your mortgage they will check the value (sales price) and check they are happy with the value before lending.