Glossary of Terms

We have gathered together on this page, a collection of terms most used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meanings of Mortgage, Financial or Property terms, please click on the initial letter below. A list of terms commencing with that letter will be presented and, hopefully, you will find what you want.

If you cannot find explanations for the terms you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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L

Land Registry Certificate
Provides details of the property including a plan and, if the property is leasehold, a copy of the lease.
Land Registry Fee
This is the fee paid to the Land Registry to register ownership of a property or an area of land.
Leasehold
If you buy a leasehold property, you own the property for a set number of years but not the land on which the property is built, as opposed to freehold where you own both the property and the land indefinitely. Ultimate ownership remains with the freeholder.
Lender
The bank/building society where you have your mortgage.
Lessee
The person to whom a lease is granted - the tenant.
Lessor
The person who grants a lease - the landlord.
LIBOR
London Inter-Bank Offered Rate. This term became more known in late 2007 and 2008. The major Clearing Banks normally have a pool of funds available which they can lend to each other for short terms. Collectively, they set the rate at which these funds are loaned depending on the amount of funds available and the period over which the money is needed. The rate is referred to as the LIBOR. Historically LIBOR was close to the Bank of England or Bank of Scotland Base Rate. Because of world-wide problems (often described as the "Credit Crunch") the close link between these rates became severed.
Licensed Conveyancer
An alternative to using a solicitor. This people specialise in the legal side of buying and selling property.
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.
Loan
The amount borrowed, whether unsecured, secured or by way of a mortgage.
A check carried out by the buyer's solicitor to check that there are no proposed developments in the area of the property such as roads, railways or other buildings. The check also includes details of the planning permission for the property and whether the council has served any enforcement notices on the property. A fee is charged for this service.Questions to the local authority regarding plans for new road building, planning permission for any building work previously carried out, connection to the mains sewer, etc.
Loan to Value (LTV)
This refers to the size of the mortgage as a percentage of the value of the property or its purchase price i.e. A £45,000 mortgage on a house valued at £50,000 would mean that the LTV would be 90%.