Leasehold Extension - Jargon Explained
Annoyed with all the jargon associated with your lease extension
? Not quite sure what ground rent is, or a reserve fund? Then this article is going to lend a helping hand.
Conveyance: it is signed when someone buys a property and documents the change of hands. Without the transfer taking place, a sale is not legally completed. Ask when dealing with leasehold extension if this applies to you.
Estate: it refers to ownership of land - either leasehold or freehold. If extending your lease, get acquainted with use of this simple term.
Execute: to sign a document. Another easy term to use with leasehold extension docs.
Freehold: ownership of land and any buildings on that land (alternative to leasehold). The ownership period needs to be of an unknown duration. This may be not necessary knowledge for a leasehold extension, but it quite interesting to know.
Ground Rent: a small amount of money you pay for the land your property sits on. An important term when dealing with extending your lease.
Joint Tenant: more than one person owns the land in question. Easy to understand and good to use for any leasehold extension agreements that apply.
Lease: a contract signed by tenants when a property or land is rented out.
Lease extension: your legal right, in certain circumstances, to extend the lease on your flat by a further 90 years
Leasehold: property returns back to its owner when the lease finishes, you are only therefore renting for a period of time (for example 99 to 125 years). Understand this term, rather than just speak it when extending your lease.
Lease Term: the length of time that the lease is valid for before it will need to be renewed.
Legal Charge: a legal term sometimes used in place of 'mortgage'.
Power of Attorney: this is authority given by someone to allow another person to act on their behalf.
Register: usually refers to the HM Land Registry who record property ownership details in England and Wales. If you wan to buy a property then you'll need to pay for a number of registry services to make sure that your mortgage company is happy to lend you the money you need. Get knowledgable with this for leasehold extension plans.
Reserve Funds: the landlord collects sums in advance to create a reserve fund to make sure that enough money is available for future scheduled major works, like external decorations or lift replacement. Useful to know in leasehold extension agreements.
Tenancy: temporary possession of land or property owned by another. Simple term to use and understand in extending your lease.
Tenant: person who resides in a property or on the land which is under a lease.
Tenants in Common: if more than one person has an interest in land then if they were to die the ownership would not pass to the surviving party but would form part of their estate. Check this out with your lawyer when extending your lease.
Tenure: land is held on certain terms, the most common being leasehold or freehold. Proper use of this term is good when extending your lease.
This may seem complicated to absorb but take time to get yourself acquainted with these terms. Using an experienced leasehold extension lawyer to get advice and guidance will help you get a firm grasp on the process of leasehold extension/purchase.
by: Tim Bishop
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