Jargon Buster
Lease – Lettings
A lease lays out the rights and responsibilities of both a landlord and a tenant during a tenancy.
Leasehold
A leasehold property is one that is purchased by a buyer for a certain period as set out in the freeholder’s lease.
Most flats and apartments are leasehold and a ‘time certain’ – meaning the buyer has the right to ownership for the time remaining on the lease.
Legionnaires Disease
Legionnaires Disease is the illness caused by legionella bacteria, which thrive in stagnant water.
Lessee
Lessee is another word for ‘tenant’.
Lessor
A lessor is another term for a landlord.
Listed
Properties of architectural significance are granted ‘Listed’ status, which protects them from alterations. Owners will need listed building consent to undertake certain work rather than just planning permission.
Listing
Listing refers to a property being placed on the market for sale.
Managing Agent
A managing agent is the person or company retained by a landlord to manage their property and its maintenance.
Market Appraisal
Market appraisals are carried out by estate agents to give sellers an estimate of what they may be able to achieve as a sales price.
Method of sale – Auction (Modern Method)
Buyers under the modern method of auction pay a non-refundable reservation fee but have longer to pay their full deposit and complete their purchase, leaving time to complete a mortgage application. The buyer also pays the auctioneer fee, rather than the seller.
Method of sale – Auction (Traditional Method)
Traditional method auctions are those usually held in person in an auction house. Sales become legally binding once the auctioneer’s hammer falls and buyers must pay their deposit and sign a contract immediately, alongside paying a fee to the auctioneer.
Once the deposit has been paid and exchange of contracts has taken place in the auction house, the buyer and seller have another 28 days to complete the sale. This means buyer funding must be completed before they attend the auction.
Method of sale – Formal tender
Formal tender is a complex sales process and is therefore very rarely used in the UK. It refers to properties that are marketed with a deadline for buyers to submit bids. Each buyer’s tender document should include a full contract and banker’s draft as a deposit. The seller will then select the best bid, accept the banker’s draft, and exchange contracts with the successful bidder immediately.
A date is appointed for completion of the sale, which the buyer must stick to or otherwise forfeit their deposit and incur further costs.