Glossary

Land Registry Certificate

Issued by the Land Registry to the owner of the registered land, these certificates act as proof of ownership prior to the introduction of the Land Registration Act.

Land Registry fee

A fee paid to the Land Registry to register ownership of a property.

Leasehold

A leaseholder rents a property from the freeholder for a fixed period of time. This can be years, decades or even centuries. The leaseholder does not own the land that the property is built on. A legal agreement would be in place between the Leaseholder and the landlord (sometimes known as the freeholder) called a ‘lease’ – which sets out how long you will own the property for.

Lender

A bank or company, which lends you the money.

Lessor

The person who leases or lets a property to another; a landlord.

Letter of Credit

Also known as Documentary Credit is controlled through the banking system. It means your supplier has to provide specified documents to a bank in order to get paid.

It's a commitment from your bank to your supplier stating it will receive payment within a set time limit, as long as clearly defined terms and conditions have been met.

Life assurance

Commonly confused with life insurance (which has a fixed term), life assurance is a type of insurance policy in which a lump sum is payable upon death. Life assurance is often taken out with a mortgage to insure against the borrower’s death before the loan is repaid.

Loan Term

The loan period, or loan term, is the length of time you’ve agreed to borrow money for. It can last from a few days to a number of years depending on the terms of your agreement and the type of loan you are taking. In most cases, interest will accrue throughout the term of the loan.

Loan to Value (LTV)

The ratio of a loan to the value of an asset purchased.

Local authority search

A series of queries submitted to the local authority in which the property is located. The questions will cover matters relating to road schemes and ownership, planning permissions affecting the property and local conservation issues among others. A local authority search is always required if you are taking out a mortgage.