We know that lease agreements and documentation can contain a lot of jargon, so we've tried to break it down for you here.
Assignment:
Where a property changes ownership and is placed under a new name.
Breach:
When one or more of the rules in the lease is broken.
Communal area/s:
Places/areas used by all residents/neighbours on an estate.
Conveyance Plan:
A document showing what you are purchasing.
Covenants:
Rules and responsibilities.
Deed of variation:
Where an error in the original lease is corrected.
Defects:
Any defective issues found in a new-build house within the first 12 months following its completion.
Easement:
The legal right of way over your land or someone else’s.
Forfeiture:
Where we (Plus Dane) repossess your lease following non-payment of rent.
Freeholder:
The person/company who owns the land your home is built on.
Header lease:
Where the property is built on land that we (Plus Dane) have leased ourselves.
Land Registry:
The government agency that holds records of land ownership.
Lease:
A document outlining all agreements between a buyer and a seller.
Lease extension:
Where you make the length of your lease longer.
Lessee/Leaseholder:
The person who has purchased the lease (you).
Lessor/Landlord:
The owner of the freehold (us – Plus Dane)
Management Fee:
A culmination of all of the costs which have to be met by Plus Dane when providing services to you. It also includes a contribution to the office space, etc.
Mortgagee/Lender:
The person/bank lending the money to buy a home.
Mortgage Protection Clause:
An agreement that the mortgage will be paid in full before anyone else received funds following a repossession or
sale of the property.
Mortgagor:
The person who has taken out the mortgage to buy a home (you).
New build:
A brand new property that has just been built.
Nominations agreement:
An agreement with us (Plus Dane) and the Local Authority showing who gets priority for the homes, and
also outlining any local connection requirement.
Notice of charge:
A document that notifies Land Registry of your ownership of a home and details any mortgage on the property.
Notice of transfer:
A document that transfers the ownership of a home to someone else.
Perpetuity clause:
A requirement for the owner of a home (once they own 100%) to inform us (Plus Dane) of their plans to sell their home if they have owned their home for less than 21 years.
Repossession:
Where your mortgage lender takes your home from you due to arrears.
Resale (Sometimes called Assignment):
The sale of a shared ownership property by its current owner to someone else.
Restricted staircasing:
A limit on the amount of the property you can buy.
S106:
A contract between us (Plus Dane) and the Local Authority stating what we can build and what it can be used for.
Service charge:
A charge paid by the homeowner for services provided to the estate.
Staircasing:
The procedure of buying further shares of your home.
Term of years:
The length of the lease.
Terms of a lease:
Individual rights and obligations.
Title deeds:
A document showing the owner of a piece of land. This is recorded by Land Registry.
Undertaking:
Commitment by any party to do something relating to the property.
