Tariff
A term referring to either a type of tax on goods brought from to transported to another country; a price for particular service.
Tenancy
A term referring to the circumstances whereby the property is occupied by individual/s on a short-term or long-term basis who pay rent to the legal owner of the property.
Tenancy agreement
A type of contract between the legal holder of the property (landlord) or agents acting on his behalf and the person wishing to reside at this property for a certain period in exchange of regular payments (rent).
Tenancy at will or licence
A type of tenancy agreement where the purchaser wishes to take possession of the property he is to purchase following the exchange of contracts but prior to completion. This is usually arranged to allow the purchaser to undertake some repairs or if circumstances necessitate moving in before the completion. In this scenario, the purchaser would normally be expected to pay an agreed rate of interest on the outstanding balance (property price minus deposit) rather than rent.
Tenant
A person residing at the property on the short-term or long-term basis in exchange of regular payments (rent) to the legal owner of the property (landlord).
Tenants in common
A type of property ownership where two or more owners agree to have individual shares in the property. The shares do not have to be equal and upon the death of one of the tenants pass to his heirs rather than co-owners. Please also check Joint Tenants for alternative type of property ownership.
Tender - For sale by
The circumstances pertaining to the sale of the property where the prospective buyers are invited to state their offers in writing before the stated deadline having acquainted themselves with the property details, having undertaken relevant surveys and made financial arrangements for the purchase. Offers tend to be opened in the presence of the seller’s legal representative. Seller retains the right to refuse even the highest offer.
Tenure
The way the property is held in UK. It describes the rights one has over the land. If one’s property is freehold, he has absolute rights to use it. If one’s property is leasehold, he has to pay ground rent to another person (lessor) for the right to use it.
Term
A timescale for the mortgage loan to be repaid or for the insurance policy to mature.
Term Assurance
A type of life insurance that will pay a lump sum to the beneficiary upon death of the policy-holder during the specified period.
Terminal Bonus
Final bonus that is paid on completion of the endowment mortgage. Its amount will depend on how well investment fund performed and may not be sufficient to repay the mortgage capital.
Terraced house
A type of property that shares one or two walls with other houses in a row of three or more properties.
Tied Agents
An agent, usually a mortgage advisor or broker, who works for a particular lender or estate agents. Such agent cannot provide an independent financial advice as he would be committed to selling financial products offered by the lender he is working for.
Tie-in Period
A period of time the borrower agrees to stay with the lender having taken out a specified mortgage such as Cash-back mortgage, Fixed rate or Discount. Early repayment of the loan in such circumstances usually attracts a fine which is known as Early Repayment Charge.
Timber Framed
A type of property with its structure mainly constructed from timber (wood) and not stone, brick or concrete. The rate of building insurance is usually higher for this type of property.
Title
Legal document pertaining to the property confirming its details, such as legal ownership, restrictions and other liabilities that may affect the property.
Title - Absolute
The best possible title the property could hold which if free of any attachments and/or liens.
Title - Abstract of
A summary of facts from the bundle of documentation pertaining to the title of unregistered property that confirms vendor’s right to sell the property in question.
Title deeds
A legal document or bundle of documents that includes the details of current legal property owners, history of the property title, restrictions affecting the property, etc.
Title Insurance
A type of insurance to compensate for the loss of benefit pertaining to the property as a result defects in property title.
Title Search
An enquiry undertaken by the purchaser’s legal representatives into the history of property ownership to check whether there are any restrictions and/or claims or charges affecting the property.
Top Up Loan
A type of a mortgage in addition to the first or primary loan. The amount that could be borrowed attracts higher charges as it is often higher that the loan to value rate by the first lender.
Tracker
A type of loan with an interest that is tied to the Bank of England Base Rate at a certain percentage, for example 1% above or below. When the base rate changes, the rate on a tracker mortgage will change too.
Tracking
A term referring to the chasing the progress of one’s mortgage application by the mortgage broker or other interested party.
Traded Endowment Policy (TEP)
Please see Second Hand Endowment Policy, also known as SHEP.
Transfer deed
A legal document confirming that legal ownership of the property has been passed from previous owner to the new one. This also ensures that the transfer has been carried out in accordance with the law.
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