Freehold

Outright ownership of the property and the land it stands on.

Leasehold

The right to possession, but not ownership, of a property for an agreed period of time. Ultimate ownership remains with the freeholder.

Leesee/ Leesor

The lessee is the person to whom a lease is granted - the tenant. The lessor is the person who grants a lease - the landlord.

Ground Rent

An annual charge payable by the leaseholders to the freeholder.

Land Registry

A Government Office that records land ownership in England and Wales and records any transfers of ownership.

The Deposit

This can be either a "reservation charge" given as a sign of good faith, or the amount payable on exchange of contracts.

Subject to Contract

The phrase used before exchange of contracts which allows either party to withdraw without incurring a penalty.

The Vendor

The person(s) you are buying the property from.

A Guarantor

A person who promises they will pay the borrower's debt, usually if the borrower fails to.

Lender

The bank or building society where you have your mortgage.

The Advance

The mortgage loan.

High PercentageLoan Fee or Mortgage Indemnity Guarantee (MIG)

Usually added to your loan if you borrow more than 90%

Capital

The amount owing to the lender, excluding costs and interest outstanding.

Gazumping

After you have agreed the price for a property, the buyer accepts a higher offer from another buyer.

The Contract

This sets out the terms of sale including the price. The buyer and the seller each sign a copy and these are exchanged to form a binding contract.

Exchange of Contract

In England and Wales (not Scotland), this is the point when both buyer and seller are legally bound to the transaction. The buyer pays the deposit and a date is set for completion. The buyer should now take out buildings insurance on the new property.

Completion (Date of Entry in Scotland)

This is when the seller receives the money from the sale and the legal ownership passes to the buyer.

Early Redemption or repayment charge

If you repay your mortgage during the period of a fixed or discounted rate, or switch mortgage providers when you have one of these rates, your lender may make an early redemption or repayment charge.

Stamp Duty

A Government tax the buyer pays over a certain value.

Collateral/ Security

The property which the lender can sell to repay the loan if the borrower does not keep up the mortgage payments.

Title Deeds

These show who owns a property and other legal matters including any restrictions in use of the property and rights of way.