The Arrangement Fee: The fee often charged by the lender, especially on special mortgage and remortgage products or plans such as capped, fixed or discount rates, cashback schemes etc.

Buildings Insurance: This is required from exchange of contracts to cover the house you are buying against damage. If you are selling however, you must pay your buildings insurance up to the date of completion. If the property were leasehold the freehold Owner/management Company would arrange this.

Building Survey: A full inspection of the property by a surveyor, on behalf of the buyer of the property. Fee to be paid by the buyer.

Chain: Quite often there will be a number of people whose house sales and purchases are linked together. For example, a buyer with no house to sell will be at the bottom of a "chain" of transactions, buying from someone who is in turn buying from someone else. At the top of the chain will be somebody who is selling a house but does not have to buy a house. The shorter the chain the simpler the transaction! In short, one buyer is dependent on his or her sale going through before he or she can proceed. The transaction can only proceed as fast as the slowest link in the chain.

Collateral/Security: the property, which the lender can sell to repay the loan if the borrower does not keep up the mortgage payments.

Commonhold: This type of ownership can apply to enable several people to share in the common ownership of land. This is usually applicable to common parts of a development of several homes.

Completion: This is the final legal transfer of ownership of the property. Upon receipt of the funds, the purchaser gains the legal right, and rights of occupation.

Completion Statement: This is supplied by your Solicitor detailing all monies received & all amounts to be paid by us, on your behalf.

Content Insurance: This is cover for all your personal belongings against theft, damages etc.

Contract: This is the legal agreement between the sellers, and the buyer. The terms contained in the contract are binding upon exchange of contracts. This is one document that all parties are required to sign.

Conveyancer/Conveyancing: A solicitor or licensed conveyancer who deals with the legal aspects of buying or selling land/property. Conveyancing is the legal work involved in the sale and purchase of land/property.

Council of Mortgage Lenders: Most Lenders are members of the Council of Mortgage Lenders which sets out specific conditions and procedures which must be observed and complied with before the advance monies required to complete your purchase can be requested. We have a duty to comply with their conditions and procedures.

Covenants: Legal obligations by either party. Defective Title Indemnity Policy - in circumstances where either the property you are selling or the property you are buying has a title defect, however minor or major, the majority of issues can be covered by a defective title indemnity policy at a one off premium. Pathway has online access and can obtain Defective Title Indemnity Insurance quickly and at a competitive price. Title Indemnity policies cover irregularities in title such as lack of rights of way to the property, lack of planning permission/building regulations and breaches of restrictive covenants.

Deposit: The deposit paid, normally 10%, towards the total price of the property. This is payable on exchange of contracts, but counts towards the purchase price.

Disbursements: Payments we make on your behalf to pay for such things as searches, stamp duty land tax and land registry fees.We will usually ask for this from you before the amount is paid out by us.

Early Redemption Charges: If you want to sell your house or change to another lender, you'll end up paying back your loan early. Many mortgage lenders charge a penalty fee, particularly during any period of fixed, capped or discounted rate. Check it out in advance, so you know what you're letting yourself in for.

Equity: The part of the value of the house that belongs to you. For example: if you buy a £100,000 property and put down a 10% deposit, then you have £10,000 equity in the property. Negative Equity, on the other hand, is when the value of your property in current market value, is worth less than your mortgage, making it hard and expensive to move. When house prices plummeted in the early Nineties recession many homeowners went into negative equity.

Environmental Search: This will show the level of risk from flooding, landfill, radon gas, and other issues.

Exchange of contracts: This is the point when both the buyer and the seller become legally bound to the transaction, by the terms of the contract. The buyers buildings insurance should start from this date.

Freehold: This is outright ownership of the property and the land on which it stands.

Gazumping: When the Seller accepts an offer, but then accepts a higher offer from someone else, before exchange of contracts.

Ground Rent: An annual charge payable by leaseholders to the freeholder.

Guarantor: A person who promises they will pay the borrowers debt, usually if the borrower fails to.

Home-buyer’s survey: A surveyors report on a property. This is less extensive than a building survey and is paid for by the purchaser.

Home Information Packs (HIPS): Under Part V of the Housing Act 2004 a seller can no longer market the property until he has available for prospective purchases certain documents. These include some searches, answers to specific matters affecting the property, title information and Home Condition Report. We can keep you up to date with their requirements where necessary.

Land Charges Search: A search against the Seller and predecessors in title when the title of the property has not yet been registered at the HM Land Registry.

Land Certificate: Provides details of the property including a plan, registered at the Government land registry. When a mortgage is held over the property, it is known as a Charge Certificate.

Land Registry Fee: A standard fee paid to the Land Registry to register the change in ownership on the charge/land certificate.

Leasehold: The right to possession, but not ownership, of a property for an agreed period of time i.e. 99 years. Ultimate ownership remains with the freeholder.

Lender: The bank/building society where you have your mortgage. Sometimes referred to as the mortgagee.

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

Life Assurance: An insurance policy that pays a lump sum on death. Often taken out with a mortgage to provide money for the loan to be repaid if the borrower dies during the term. Mortgage lender will usually say whether this is required, or recommended.

Local Authority Search: Questions you Solicitor will ask the local authority regarding plans for new road building, planning permissions for any building work previously carried out.

Mortgage: Has a specific meaning in law but has come to mean a loan with property as security.

Mortgage Deed: Required by the lender. Used to register the lender’s charge against the property. All purchasers are required to sign this document.

Mortgagee/mortgagor: The mortgagee is the lender who lends money to the buyer, the mortgagor. Solicitor acts for the lender as well as the buyer.

NHBC Guarantee: A 10 yr. guarantee, provided by the National House Building Council, that the builder will put right serious defects affecting a newly-built property.

Office Copy Entries: An official copy of the registered title provided to the buyers’ solicitors, at the cost of the Seller.

Redemption: When calculating redemption repayment figures in connection with existing mortgages, your mortgagee will take into account all payments made to the account. It is vital that you do not cancel or recall any direct debit/standing orders as this will then result in an amount outstanding on your mortgage, and your existing lender will not release the mortgage from the property. It is a condition of you selling the property that all secured mortgages are discharged upon completion. Please ensure in the questionnaire, which will be sent to you at the outset of the transaction, that you provide us with details of all secured charges relating to the property and an estimate of the current redemption figure.

Redemption Penalty: A penalty on repayment of your current mortgage. Some mortgages offer you a discount, fixed rate or cash back, but if you repay the mortgage within a certain period you have to pay extra to compensate the lender for not keeping the mortgage for the agreed period.

Registered Land: Land which has been registered at the Land Registry

Searches: There are various searches that either must, or can be done on a property you are hoping to buy. Some are required by your mortgage lender, whilst others are optional. Your solicitor will provide advice regarding any specific searches that ought to be considered.

Service Charge: If the property you are selling or buying is Leasehold, there is likely to be a service charge to pay. If you are selling the property, any service charges accrued to the date of completion will be your responsibility. If you are purchasing a property, the responsibility for the service charge will commence on the day of completion.

Specialist Report: A report required by the lender into particular defects discovered at the property to be purchased, such as serious structural movement or dry rot, before they will agree the mortgage.

Stamp Duty: A government tax charged by the Inland Revenue. The fee is based on the value of the property. This must be done before the change in ownership can be registered at the Land Registry. Your solicitor will arrange this after completion.

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

Surveyor/Valuer: The person qualified by the Royal Institution of Chartered Surveyors to carry out valuations and surveys of properties.

Title Deeds/Title document: The legal documents that provide proof of ownership of a property. (See land/charge certificate)

Transfer: A form that provides details of the transfer of ownership to be entered on the Land Registry register. Used to effect transfer of ownership on completion. This is one document all parties are

Unregistered Land: Land which has not yet been registered at the Land Registry. This doesn't mean that there is a problem with the land; it is usually the case that the land concerned has not been sold since it became necessary to register land in that area. In that case we will register it following completion.

required to sign.

Valuation: An inspection of the property to ascertain its acceptability to the lender as security against the mortgage loan, for which the borrower may have to pay.

Vendor: The Seller of the property.

Water Search: Also known as a drainage Search. This is carried out with the local water authority and confirms the location of the water pipes, whether the property is connected to mains drainage, if not where the nearest mains drainage is located.