First Time Buyer Property Finance Guide
PAD Financial 3 Newsham Road Sheffield S8 9EA 0844 443 4770 www.PADFinancial.co.uk
Welcome Thank you for requesting a copy of our guide to purchasing a property. We hope that you can use this guide hand in hand with the advice from your PAD Financial advisor to make the house buying process an enjoyable and straight forward one. The house buying process is a long and complex one, but you need to start somewhere and our aim is to advise you about the journey you have ahead of you and what you need to do before, during and after you have bought your house.
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Postal Bank Statements - in this age of technology, most lenders encourage you to bank solely on line and have all your statements sent electronically to you. However, when it comes to assessing you for a mortgage, these same lenders want to see that your bank statements arrive at your home address.
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Check your Own File - using a firm such as Experian or Equifax will allow you to view your report and you will be able to see what its good points or bad points are. Discuss this report with your advisor to find out exactly what it all means.
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Delink from past relationships - you can write to credit agencies asking to be delinked from any ex you had a financial relationship with. This will stop their credit having an impact on you.
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Amend errors - If you think that you file shows a mistake, you can ask the lender to correct it. If they refuse, you might be able to add a notice of correction to the file and perhaps complain to the Financial Ombudsman.
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Cancel unused cards - if you have no problem using credit and could maybe be accused of using to much, you should look to cancel the cards you no longer use or try and cut back on them.
First Things First If you are looking to purchase your property with the help of a mortgage, there are certain things you can do to make yourself as attractive as possible. Any lender, bank or building society wants to know who they are lending to and if they have ever experienced any form of credit in the past. An applicant that has a good credit history is far more likely to be offered a mortgage than one that has little or no credit history. There are a few important things that you can do to ensure you can show you have the ability to be good with credit: •
Register to vote - if you appear on the electoral register, the lender knows that you are at the address on your application.
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Use credit and make payments on time - this can be in the form of a credit card, loan or hire purchase. Many people are sceptical of taking out credit due to the interest costs involved and the fact that they do not trust themselves with the facility. However, think about this for a moment. You are asking a lender for a loan of tens of thousands of pounds, so you have to be comfortable managing a few hundred pounds. If you manage it correctly, you can built your credit up, not get charged interest and perhaps even earn cash back.
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Mobile Phone - using a mobile phone on a contract is a contractual credit agreement and as long as your monthly payments are made on time, it will be to your benefit.
If you have any concerns over your credit history, maybe in the form of: •
Missed / Late payments
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Unpaid phone bills
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Previous rejection
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Defaults
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County Court Judgements (CCJ)
you should speak to your advisor about possible solutions.
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Budget Buying a house takes careful budgeting. You need to know all the costs involved before you go ahead and they are not always obvious. The main things to think about are:
Stamp Duty This is the tax imposed by the government on purchased property (or when there is a change of owner) only – i.e. you don’t pay tax on the property you’re selling, just the one you’re buying. Stamp Duty is taxed as follows: Purchase Price of Property (£) 0 – 125000
Stamp Duty Payable (%) 0 (0)
125001 – 250000
1 (0)
250001 – 500000
3 (3)
500001—1000000 1000000 +
4 (4) 5 (5)
These figures are correct at time of press. Please visit our website for updated figures. Figures in brackets apply to first time buyers only.
Solicitors / Conveyancing Fees These are the fees charged by your solicitor to perform all the legal duties associated with buying a house. PAD Financial work with a panel of local and national firms and can help with finding you a suitable legal representative for your purchase. The more expensive the property you are purchasing the higher their fees will be. Additional charges will be incurred for leasehold properties and more complex conveyancing. The cost you pay will generally be determined by the price you are paying for the property and typically equals around £3 -£4 per every £1,000. So a purchase of £200,000 might typically cost £600 - £800. However, you will have to pay VAT on top of this and the cost of the searches.
Searches Carried out by the solicitor, these are a safeguard to ensure all aspects of the property are in order. Some items which a search might investigate are as follows: •
Property renovations/alterations
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Location of local Coal Mines
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Flood/ subsidence risk
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Local housing market etc
The cost incurred through instructing Searches can vary dependent upon the location and company used. However, your legal representative will be able to give you a breakdown of the searches they recommend, the searches that are required by the lender and the cost of them. On some occasions it may be possible to take out insurances and not carry out a search. This can be useful if you are in a hurry.
Removal Fees Some people prefer to do this themselves, either by hiring or borrowing a van. But from personal experience, it’s far easier to watch someone else carrying your sofa than trying to do it yourself!!! It is advisable that you obtain at least 3 quotes before finally choosing a removal firm. The quotes will be based upon the distance between properties, the amount of furniture, any extra insurance, time required and the number of individuals to complete the job.
Arrangement Fees These are the fees charged by the Lender and/or the broker to cover the administration costs associated with the set-up of the mortgage account. Arrangement fees can vary dependant upon the product and can be up to 2% of the loan amount. Typically those products which are fixed, or have low discounts have higher arrangement fees. However, many Lenders will allow you to add the fee to the mortgage in order to make it more affordable.
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Booking Fees These are very similar to arrangement fees, however, they are used to gain a greater level of commitment. For example, if you were to pull out of a product with an arrangement fee, it is likely your money would be refunded. However, if it was a Booking fee instead, your money would not be returned as it was used as a “deposit” to book that rate. The cost can vary but if charged it can be anything up to 2% of the loan amount.
Withdrawal Fees In the current climate, some lenders will look to charge an additional commitment fee which could be payable up front or if you withdraw for any reason.
Advisor Fees There is a lot of work that goes in to advising on the best deal for you and then liaising with the lender, solicitor and estate agent to ensure that everything happens as it is supposed to. For this reason it is likely that your advisor will charge a fee for their service.
Survey Fees There are three main types of survey, giving different levels of information to the potential borrower.
• Full structural survey As the name suggests this is the most comprehensive survey available. It is instructed by you in a similar fashion to a Homebuyers report, and therefore has the same legal implications. However, in addition to the Homebuyers report, it will detail any maintenance which is required on the property. Expect to pay around double the cost of the homebuyers report.
Upfront Service Charges These are the charges made by the management company of flats/apartments for the maintenance and general up keep of all public areas such as corridors, gardens. These are often paid in 6 monthly intervals and can come as quite a surprise when you first move in, so be warned, check what these fees are and when they are due.
Furniture For most people, this is an expense which is spread out over a period of time and so doesn’t really enter into the immediate equation. However, for first time buyers with no furniture, this could well be a very large expense, and must be budgeted for, depending on the amount and the quality of the furniture required.
• Standard valuation This is a basic valuation for the sole use of the lender to ensure the property is adequate security for the loan. • Homebuyers report This is a more comprehensive survey, and can be used by the buyer as another tool in the decision making process. This is instructed by yourself through the lender, and therefore creates a legal relationship between you and the surveyor. Unlike with a standard valuation where no such relationship exists. Expect to pay around double the cost of a valuation.
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Personal Budget Planner Booking Fees It is vital that you also plan your own budget as once you have bought your property, you will have some very big commitments, some of which you may not previously have had to pay. These will include your mortgage, your home insurance, council tax and your utilities, but there are many other things that only you will know what you spend your money on. Please complete this budget planner is as much detail as possible and discuss it with your adviser. It will help you plan what sort of mortgage you can potentially afford so that your house does not become a prison and you are still able to enjoy life.
Monthly Income
Total Montly Expenditure
Balance
Your Basic Salary Partners Basic Salary Guaranteed overtime Pensions Child Benefit Income Support Tax Credit Other Benefits Maintenance Other Total Income
Total Commitments Total Everyday Total Occasional
Monthly Income Monthly Expenditure
Monthly Expenditure Commitments Mortgage Home Insurance Life Insurance Income Protection Council Tax Gas Electricity Gym Pension Investments
Total Commitments
£
Amount
£
Grand Total
Everyday Spending Food Phone Broadband TV Pet Sports
Total Everyday
£
Amount
£
Monthly Surplus/deficit £
Occasional Clothes Holidays Cinema Alcohol Smoking Birthdays Christmas Furniture
Total Occasional
Amount
£
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Moving It’s common knowledge that moving house is one of the most stressful events to occur in in your life. Whether you’re a first time buyer, or an experienced mover, the number of considerations to bear in mind sometimes seems like an insurmountable burden. Here are some of the things to bear in mind to make that move go a little smoother. You will by now have worked out a budget and been preparing yourself to get out and start looking for a home. There are now some important things you need to do.
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Drive round the areas at different times of the day and night to measure traffic noise etc
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Why not try driving to and from work at the appropriate times. The last thing you want to do is have perfect house and not see any of it because you’re stuck in traffic!!
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Go to www.dfes.gov.uk/performancetables/ to look at school performance tables.
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Try www.upmystreet.com for information about your potential location.
Speak to an Advisor
Make an Offer
Your advisor will discuss things such as the type of rates available and what is the most suitable way for you to repay the mortgage.
It is wise before you make an offer to find out who you are bidding against, not only in terms of what their offers are, but also what their circumstances are. This way you can try to work out how high the opposition can go and how fast they can move. This, combined with your budget and Agreement in Principle, means you can decide what your opening bid will be, and where you set your upper limit.
Agreement in Principle An Agreement in Principle (sometimes referred to as a Decision in Principle) is a formal credit check with a lender to confirm in principle whether they are willing to lend you the money you require to purchase your property. Once you have this Agreement in Principle, you can offer on a property with confidence and will be taken more seriously by both estate agents and house vendors.
One point of warning - should the property move to sealed bids, or when buying at auction, be careful not to get carried away an exceed your pre-determined limits- no matter how lovely a house is, you can’t enjoy it if you can’t afford to live there.
Research Locations Who are you and what are you looking for? Chances are you will be staying in this property for some years, therefore you must establish what factors are important to you in relation to the area in which you want to live. Are you a young, single, first time buyer looking for the buzz of city living, or are you a couple, about to start a family, looking for a house in the right catchment area? It is essential that you research your move carefully – so here are some top tips: • Phone local estate agents to gauge which are the best areas that meet your criteria.
• Speak to the council. Council officers will know where money is being spent on better transport, shopping facilities, or schools. They will also know about regeneration projects planned for city centres or rundown industrial areas.
Offer Accepted Hopefully you will already have made your financial advisor aware that you are beginning negotiations on a property, but it is vital you contact them as soon as possible once your offer is accepted. Your Advisor will then guide you through the mortgage admin maze and ensure that your documentation is in order and that everything is happening as it is supposed to be. They will discuss the type of valuation you want and arrange for the application to the lender. They will then liaise with the lender and keep you updated throughout to ensure there are no hold ups and make the process as smooth as possible.
• Speak to the planning department who will know about proposals from property developers. There will also been announcement for planning permission in
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Mortgage Offer Arrives
Completion
You should read this very carefully and consult with your solicitor before accepting the terms of the mortgage offer. This is likely to be one of the biggest decisions you are ever likely to make, therefore it is essential that you take a careful approach and fully understand the details of the loan you are undertaking.
CONGRATULATIONS!!! Your solicitor has sent the remaining payment to the vendors solicitors and it’s time for you to get the keys and move in.
Make sure you look out for any conditions in the mortgage offer, do they need any further property reports to be carried out, what insurances are compulsory. Speak to us and get this all sorted as quickly as possible.
Repaying the Money
Exchange of Contracts It is at this point you become legally committed to the purchase of your property, and where applicable pay your deposit to the vendors solicitors. It is also at this date where all your insurances should take affect, and you should instruct your removal firm of your completion date. Completion can happen immediately but usually it will be set for a week or so later.
The only thing left to do now is let everyone know you have moved.
• Repayment (Capital and Interest) - The safest way to repay your mortgage. In the early years most of your money goes towards paying the interest. Later more money is used to repay the capital on the loan. You should ensure that you have sufficient critical illness, life assurance and income protection to cover the loan • Interest Only - You only pay the lender interest on the amount you have borrowed. Be warned, you will have to repay the money you have borrowed at the end of the term. You may have a current investment backed mortgage, either through an endowment, ISA, or pension. These were common in the past, however, due to stock market instability in recent years, these have proved not to be the best method of repayment. As a result, we will not advise this method of repayment, and should you wish to discuss your current situation, we will be more than happy to advise you of the best course of action when remortgaging
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Types of Mortgage Rates
TYPE
THE FACTS
THE BENEFITS
BUT……
STANDARD VARIABLE RATE
Your monthly mortgage payments go up and down in line with the lenders standard rate of interest.
You pay less when interest rates are low.
You pay more when interest rates rise, so it’s difficult to budget accurately for your monthly payments.
FIXED RATE
You chose to repay the mortgage at a rate of interest that doesn’t change for a set period of time.
You know exactly what you’ll repay each month; rising interest rates won’t affect you.
You’ll miss out on any savings if interest rates fall, and you might be charged if you repay your mortgage early. A booking fee may also be required.
DISCOUNTED RATE
The interest rate on your mortgage is discounted from the lenders standard variable rate, usually with a bigger discount at the start.
Lower monthly payments than the standard variable rate. Your payments will decrease if interest rates fall.
Your payments will still go up if interest rates rise.
CAPPED RATE
The interest rate on your mortgage never goes above a certain level during an agreed period – but does go down if interest rates fall below a certain level.
You’ll always know the maximum amount you’ll ever have to pay during the agreed period.
It will often be more expensive initially than a discounted rate mortgage. A booking fee may also be required.
CASH BACK
You are given a cash lump sum when you start the mortgage.
You’ll have extra cash to help when you are moving
You might be charged if you repay the mortgage early – and you may have to repay the cash.
FLEXIBLE
You can vary how much you repay each month – you can pay extra, or even suspend payments for a while.
You can pay extra amounts to reduce your mortgage, and build up cash that can be used for future monthly payments. You can pay more when you have spare cash or reduce / suspend payments when money is tight.
Under payments will be added to your outstanding mortgage
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Property Purchase Ideas These illustrations are only for educational purposes and do not constitute advice. Please follow the recommendations of your advisor as to which is the best method for you.
Traditional Property is purchased for a set price. The purchaser buys the house for the agreed price with a sum composed of mortgage and deposit. The deposit can take the form of a gift from a family member or savings in the bank. The mortgage is the arranged based on the level of borrowing needed. For Example A man agrees to buy a house for £100,000. He has £15,000 saved in the bank and requires a mortgage of £85,000. This is commonly known as an 85% Loan to Value (LTV) mortgage.
Vendor Gifted Deposit This method of purchasing is most commonly seen in the new build market, but can be equally acceptable in the resale market too. In this scenario the person selling the home, the vendor, would offer to pay the purchaser’s deposit, usually to the value of 5%. In some cases, this all the deposit needed to satisfy the lender. For Example A man agrees to buy a house for £100,000, but has no or little deposit. The vendor offers to pay 5% deposit or £5,000. This leaves the purchaser needing to arrange a 95% mortgage.
75/25 Split or Shared Equity Common in the new build sector, this is where the builder retains 25% of the property value, effectively lending the purchaser a 25% deposit. The purchaser can then acquire a 75% mortgage using the gifted equity share as a deposit. The purchaser must repay the equity share within 10 years or on the sale of the property. For Example A man agrees to buy a house for £100,000 and is offered this deal by the builder. The builder keeps 25% and the man takes out a mortgage for £75,000. In 5 years time, the man sells the property for £200,000 and gives the builder its 25% (now £50,000) back.
Guarantor Mortgage This is ideal for a first time buyer (FTB) or someone who for one reason or another at present cannot afford the mortgage wholly on their own, but due to their career path, should be able to in the future. In this scenario, the lender will use parental income to underpin the loan they offer to the FTB. This means that the Parent is liable for the mortgage should the son / daughter fail to keep up on the mortgage repayments. For this reason, it is advisable that the guarantor seeks independent legal advice before committing to this mortgage.
Right to Buy When a social tenant wants to buy the house they are in, they can often buy the property below open market value. It is usually possible for them to purchase the property borrowing the vast majority and in some cases all of the money needed. Ie. 100% of the discounted price.
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Protection Life Assurance
Accident, Sickness,
If you were to die without any insurance, you would leave your family with a house to pay for, with maybe no means of doing so. Life assurance would pay off your mortgage if the worst happens.
& Unemployment Cover
All endowment plans and some pension plans have built in life cover, but if you have a repayment mortgage, you should think about arranging separate life assurance.
Could you still pay off your mortgage if you lost your job? If you were made redundant, or if long term illness or an accident stopped you from working, you might lose your home. You can take out insurance against this threat, which meets your monthly payments if you can’t.
Critical Illness
Buildings and
If you suffer from a life-threatening illness, the last thing you should be worrying about is returning back to work. But you might not have a choice. Your mortgage repayments won’t stop because you can’t work. Critical illness protection can enable you to pay off your mortgage, leaving you to concentrate on your recovery.
Contents Cover In most cases, you have to pay for the cover of the building itself. Mortgage lenders insist on it. And it’s a good idea to insure the contents of your home as well. You can insure against burglary, accidental damage, loss and many other eventualities.
Income Protection Designed to provide you with a regular income if, because of sickness or accident, are unable to work, resulting in a loss of earnings. Income protection allows you to choose how soon and for how long this income is paid, in order to create a plan to fit your personal requirements.
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GetThisDone 8 Weeks Before the Move
2 Weeks Before the Move
If you’re thinking of using a professional mover, get estimates from different companies. Choose the one that offers the service you want at a competitive price. If you’re moving yourself, work out what size van or lorry you need (see point about boxes and non-boxable items below) and get quotes from a range of companies. Make your reservation well in advance. Make a rough floor plan of your new house. This will help you decide what furniture will fit where and give you plenty of opportunity to sell the things you won’t need. Kids’ furniture can be bulky (bunk beds etc). Check to make sure your new home can accommodate existing furniture.
Make any special arrangements to move pets. Consult your vet about how to make moving easier for your pet. Start filling out your change of address cards. Cancel delivery services.
6 Weeks Before the Move Finalise costs and discuss insurance, packing, loading, delivery and the claims procedure with your chosen removal company. Decide what you’re taking with you. Moving time is a great time for a clear out as it will save you the hassle of packing and unpacking things you don’t really want or need. Either sell unwanted items through classified ads or a car boot sale, or donate them to a local charity shop. If you’re moving a long way, get copies of your records from doctors, dentists, solicitors, accountants, etc. Make arrangements to transfer your children’s school records.
4 Weeks Before the Move If the removal company is doing all the packing for you, arrange to have this task completed a day or two before loading the van. If you’re moving yourself, work out how many boxes you’ll need and get hold of them. Make a list of non-boxable items. Add 15 percent to their combined cubic feet (along with total cubic feet of boxes to be loaded) to work out the size of the van you’ll need. Arrange for storage if you need it.
3 Weeks Before the Move Assemble packing material, furniture pads, packing tape, bubble wrap, polystyrene packaging, nylon packing string and rope, crumpled newspapers, scissors, utility knife, large sticky labels, felt-tip markers and boxes. Begin packing items you won’t need. Arrange to cancel utilities and services at your old home and have them installed at your new home.
1 Week Before the Move If you will need a babysitter, arrange for moving day service.
2 or 3 Days Before the Move Defrost your fridge and freezer. Have the movers pack your belongings. Arrange to have money ready to pay the driver on moving day. Set aside valuables and legal documents to go with you, not in the van. Pack your first-day handy items box (see ‘Moving day’) to go with you.
Moving Day If you’re doing-it-yourself, pick up the van early. Make a list of every item and box loaded on to the van. Let the mover know where you can be reached. Before you sign your agreement with the mover, read the conditions. Keep it in a safe place until your goods are delivered, charges are paid, and any claims are settled. Check your old house to make sure you’ve turned off water, appliances, etc. Inspect basement, attic and garage. Lock all doors and windows. Be on hand to answer questions and give directions to the mover. Assemble first-day handy items: Scissors, utility knife, cups, kettle, paper plates, toilet roll, coffee, tea, milk, soft drinks, soap, pencils and paper, local phone book, masking tape, bath towels, large bags for rubbish, toiletries kit, shelf liner, mobile phone charger, first aid kit. Check off all boxes and items as they come off the truck. Install new locks. Make sure all utilities are connected. Unpack kids’ toys. Be on hand to answer questions, pay the driver, give directions, and examine your goods.
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Financial/Legal (notify in Writing)
Employers
Any other insurance
Friends
Bank (including children’s accounts)
Hospital (for example, if you’re
Building society
an outpatient)
(loan and savings accounts)
Nursery
Car breakdown cover provider
Neighbours
Car insurance company
Other
(quote policy no.)
Part-time, evening and
Car registration
correspondence courses
Credit cards and store cards
Relatives
Digital/Cable TV provider
Schools
Driver’s license
Social clubs
Electoral office (address in telephone
Sporting clubs (whether a player
directory under Government section)
or a member)
Hire purchase companies Inland Revenue Life assurance companies
House Keeping Electricity company:
(quote policy no.)
– ‘off ’ at old address
Local council
– ‘on’ at new address
Local police
Gas company:
(if you have any driving summonses,
– ‘off ’ at old address
etc. pending, or if you are to be a
– ‘on’ at new address
witness in a case, etc.)
Water company:
Mobile phone provider
– ‘off ’ at old address
Pension provider (quote policy no.)
– ‘on’ at new address
Property insurance company (contents quote policy no.) Public library Shares, investments, endowments Government bonds, etc. TV license
Personal/Social
Magazine subscriptions (or anything else regularly received by mail) – save wrappers with reference numbers Newsagent (with date last paper required) Post office (pay a fee for redirected mail)
Children’s activities Telephone: (Scouts, ballet, etc.) – ‘off ’ at old address
Dentist – ‘on’ at new address
Doctor
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Terms Advance The mortgage loan. Agreement in principle
Higher Lending Charge An arrangement that covers the lender if your home is repossessed and the lender can't get the money back from you. You're charged a ‘higher lending charge’ to cover the cost of this insurance. Homebuyer’s report
Agreement by a mortgage lender to lend a sum of money, subject to certain conditions.
Surveyor’s report on a property – less extensive than a structural survey. Inventory
APR This is the figure quoted by lenders and reflects the total cost of the loan.
A comprehensive list of all the items in the property before the tenants move in. You should check it when they're leaving to see that everything is accounted for. Land registration fee
ARLA The Association of Residential Letting Agents. A self-regulating body for letting agents in the UK.
A fee paid to the Land Registry to transfer ownership record of the home. Leasehold
Arrangement fee A fee paid to the lenders for arranging the loan. Assignment/Assignations of life assurance
Ownership of the home, but not the land on which it stands. When the lease expires, ownership reverts to the freeholder. Letting agent
The right of a mortgage lender to claim under a life assurance policy to ensure the mortgage is repaid, if you die, or at maturity.
Someone you pay to deal with the day-to-day running of the property. They will take around 10 -20 per cent of your rental income, but if you don't have time to do the work yourself, it can be well worth it.
Building insurance
Loan to value (LTV)
Insurance against damage to the structure of the building caused by specific events such as storm damage to the roof.
The ratio, expressed as a percentage, of the amount you want to borrow against the value of the home. London Inter-Bank Offered Rate (LIBOR)
Capital The amount of the loan on which the mortgage lender calculates interest.
The rate of interest at which banks borrow funds from other banks, used to set the rate of interest you'll pay on an overseas buy-to-let mortgage.
Capital gains tax
Mortgage
A tax you pay on profits above an allowed level (£8,500) you make from the sale of an asset such as a buy-to-let property.
A loan secured on your home. This security will remain in existence until you pay off the loan.
Completion or settlement date The date when the money is paid, the deeds are handed over, the keys are released and you can move into your new home. Conclusion of missives In Scotland, this is the same as exchange of contracts. Contents insurance
Mortgagee The financial institution lending the funds secured on a property. Mortgagor The person taking out the mortgage. Remortgage Changing your mortgage without moving property.
Cover can be arranged for the contents normally in the home and can be extended to include possessions away from the premises.
Returnable deposit
Conveyancing
A deposit the tenant pays to you before they move in to cover the cost of any damage to the property and to protect you against unpaid rent. This is repaid to the tenant when they move out.
The legal process involved in transferring a property from one person to another.
Search fee
Deed
A fee charged for checking with the local authority for details of any plans that may affect the value of the house.
The legal papers that show ownership of the house and provide information about boundaries and rights of way.
Stamp duty
Early redemption charges
A Government tax that has to be paid on houses with a purchase price of £60,000 or more.
A fee charged by some lenders if, during an agreed period, you repay the loan or switch to another lender.
Tenancy agreement An agreement between you and prospective tenants checked by a solicitor and signed before you give them the keys, which explains all the rules of the tenancy.
Equity Tenure The difference between the current value of the home and mortgage amount. A term for the type of ownership of a house e.g. leasehold, freehold. Exchange of contracts Term The point where your contract and the seller’s contract are exchanged. The length of time over which a mortgage is to be repaid. Fire and Furnishings (Safety) Regulations Title Levels of fire resistance for domestic furniture, furnishings and upholstery that your property must meet before you can let it out.
The legal right to ownership of a house, as shown in the Title Deeds.
Freehold
Vendor
Ownership of the house and the land on which it stands (see ‘Leasehold’).
The person selling the house.
Full structural survey
Void periods
A thorough investigation and report on the home’s structure.
A period of time when you are between tenants and aren't receiving any rental income.
Ground rent Annual charge payable by a leaseholder to a freeholder.
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PAD Financial, 3 Newsham Road, Sheffield, S8 9EA tel 0844 443 4770 fax 0844 443 4771 email info@padfinancial.co.uk web www.padfinancial.co.uk Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. PAD Financial is an Appointment Representatives of Home Loan Partnership Ltd which is authorized and regulated by the Financial Services Authority