Conveyancing Glossary
- Management Company
- In conveyancing transactions a management company is a company either employed by the landlord of a leasehold property or a private or residents owned company acting on their own behalf (when the management company owns the common parts of the property) in order to manage the communal areas of an estate or building. Management companies are commonly seen in conveyancing transactions involving leasehold properties but can be applicable to freehold property. Conveyancing solicitors acting on behalf of purchasing conveyancing clients will require information about the management company and will raise conveyancing enquiries with the seller’s conveyancing solicitors for passing to the management company in order to fully advise a purchasing conveyancing client.
- Memorandum of Sale
- Memorandum of Sale is another name used in conveyancing transactions by conveyancing solicitors to describe Estate Agents Particulars.
- Mortgage
- Mortgage is the term used in conveyancing transactions to describe the borrowing of money from a mortgage lender in order to purchase a property. The purchaser’s conveyancing solicitors will normally act on behalf of the mortgage lender (in addition to the purchasing conveyancing client or remortgage conveyancing client). The Mortgage actually refers to the Deed which secures the mortgage advance against the property and which is executed by the borrowers or purchasing conveyancing client during the conveyancing process. The formal deed will be sent to the purchasing conveyancing client by the conveyancing solicitors acting on their behalf. The Mortgage will encompass all the terms and conditions set out in the Mortgage Offer a copy of which is sent to the purchasing or remortgaging conveyancing clients and the conveyancing solicitors.
- Mortgage Acceptance
- Some mortgage lenders require borrowers to return to them a signed Mortgage Acceptance confirming acceptance of the mortgage offer before mortgage monies will be released to the conveyancing solicitors acting in order to affect completion of the purchase or remortgage on behalf of the conveyancing client. In some cases the mortgage lender will instruct that the acceptance is sent to the conveyancing solicitors to be sent to the mortgage lender on receipt of the land registry entries of title showing their mortgage as registered following the post completion conveyancing work carried out by the conveyancing solicitors. If a Mortgage Acceptance is required conveyancing solicitors will advise the conveyancing client in the Mortgage Report. It is imperative that any prospective purchaser carefully considers the mortgage offer as suitable for their needs before proceeding and accepting the terms on which a mortgage is offered.
- Mortgage Advance
- This is the sum of money advanced to the borrower or purchasing conveyancing client by the mortgage provider in order to carry out the purchase or refinancing of a property and complete the conveyancing transaction. The Mortgage Advance will be requested by the purchasers or remortgaging conveyancing solicitors by submitting a document to the mortgage lender called a Certificate of Title. The Mortgage Advance will then be paid into a conveyancing solicitors client account once a completion date has been agreed. The purchaser’s conveyancing solicitors will then buy the property for the purchasing conveyancing client by sending the purchase monies (including the mortgage advance) directly to the seller’s solicitors client account on the day of completion. On receipt of the funds to the complete the conveyancing transaction the seller’s conveyancing solicitors will advise that the keys for a property can now be released to the new owner usually via the estate agents.
- Mortgage Broker
- A Mortgage Broker is a mortgage expert who must be registered and is regulated by the Financial Services Authority to provide mortgage advice. Many people choose to obtain expert mortgage advice from a Mortgage Broker in order to help them choose the best option when obtaining a new mortgage in order to carry out a conveyancing purchase or remortgage transaction. Conveyancing solicitors and mortgage brokers will often liaise throughout the conveyancing process.
- Mortgage Conditions
- In conveyancing terms Mortgage Conditions are the conditions on which a mortgage is offered to a borrower or purchaser in a conveyancing transaction by the mortgage lender. All offers of mortgage come with conditions attached and the conveyancing solicitors acting on behalf of a purchasing or remortgage conveyancing client must ensure the conditions are fully explained to the conveyancing client and where applicable adhered to during the conveyancing process and following completion of the conveyancing transaction. The formal mortgage offer as sent to the purchasing or remortgage conveyancing client and conveyancing solicitors acting will contain the general conditions applicable to all mortgage offers issued by the particular lender and in addition may contain conditions known as special conditions that relate specifically to the individual borrower or purchaser’s offer of mortgage. Often more general Mortgage Conditions may be contained within a booklet or additional literature sent to a borrower by a mortgage lender along with the formal offer of mortgage. When a Mortgage deed is executed during a conveyancing transaction the borrower is deemed to understand and agree to all the Mortgage Conditions whether they are contained directly in the mortgage offer or set out in any accompanying literature and the conveyancing solicitors acting for the remortgage or purchasing conveyancing client must ensure all the terms are provided to the conveyancing client before completion of the conveyancing transaction. The most common Mortgage Condition applicable to all offers of mortgage seen in a conveyancing transaction is the condition that if you fail to make the payments due on your mortgage the mortgage lender may repossess the property and sell it in order to get the mortgage advance plus any costs associated with recovery of the mortgage advance back. This means of course that if a remortgage or purchasing conveyancing client fails to pay the mortgage they may ultimately lose their home or property.
- Mortgage Deed
- A term heard often during the conveyancing process this is the formal Mortgage Deed incorporating all the terms and conditions of the mortgage which the purchasing or remortgage conveyancing client must formally execute (sign with a witness) during the conveyancing process to accept the mortgage offer all the conditions and obtain the mortgage advance to be used by the conveyancing solicitors in the conveyancing process. The Mortgage Deed will be sent to the conveyancing solicitors acting with their copy of the mortgage offer and will be sent to the purchasing conveyancing client during the conveyancing process. The purchaser’s conveyancing solicitors must be in possession of a correctly executed Mortgage Deed before they can release the mortgage advance and send it to the seller’s conveyancing solicitors as part of the purchase monies in order to complete a conveyancing purchase transaction. The conveyancing solicitors will also give legal advice to the conveyancing client obtaining the mortgage as part of their duties in the course of the conveyancing transaction.
- Mortgage Lender
- A term used commonly in conveyancing Mortgage Lender refers to a bank building society or specific Mortgage Lender that lends money to individuals or companies in order to purchase or refinance a property. A mortgage lender will insist conveyancing solicitors or a licensed conveyancing company act on their behalf in a purchase or remortgage conveyancing transaction. Occasionally some Mortgage Lender’s will insist on appointing their own conveyancing solicitors to deal with the mortgage aspect of the conveyancing transaction in which case the conveyancing solicitors acting on behalf of the purchasing conveyancing client will supply information to the Mortgage Lender’s conveyancing solicitors during the conveyancing process.
- Mortgage Offer
- In conveyancing the term Mortgage Offer is used to describe the formal Mortgage Offer document setting out the terms and conditions of an offer of mortgage from a mortgage lender sent to a purchasing or remortgage conveyancing client with a copy also sent to the conveyancing solicitors acting in the conveyancing transaction. The Financial Services Authority have a prescribed format for mortgage lenders to follow when issuing mortgage offers to private individuals purchasing or remortgage residential property. The conveyancing solicitors acting for the purchasing or remortgage conveyancing client will give legal advice on the contents of Mortgage Offer.
- Mortgage Redemption Penalty
- In conveyancing and mortgage terms a Mortgage Redemption Penalty is a fee charged by a mortgage company for repayment of a mortgage within a specified period of time. A Mortgage Redemption Penalty is usually payable under the terms of a mortgage offer when an offer gives a benefit period to a borrower such as a fixed rate for a fixed term although early repayment fees can apply to many different mortgage products. A remortgage or purchasing conveyancing client when taking out a new mortgage will be advised by their conveyancing solicitors to carefully read a mortgage offer to see if they will be liable to pay a Mortgage Redemption Penalty in the event that they wish to repay the mortgage within the benefit period or within timescales to which the Mortgage Redemption Penalty is attached.
- Mortgage Redemption Statement
- A Mortgage Redemption Statement is commonly seen in conveyancing for sales and remortgage conveyancing transactions and is an amount owing statement issued by the current mortgage lender. Early in the conveyancing process a remortgage or seller’s conveyancing solicitors will request a Mortgage Redemption Statement from the current mortgage lender to check the amount currently owed. A copy of this statement will be provided to the selling or remortgage conveyancing client as part of the conveyancing transaction to check by the conveyancing solicitors. If the conveyancing client believes a Mortgage Redemption Statement to be incorrect the conveyancing solicitors acting will advise the conveyancing client to contact the mortgage lender directly to discuss. A further Mortgage Redemption Statement will be requested from the mortgage lender by the conveyancing solicitors once a date for completion has been fixed and this would be the amount that the seller’s conveyancing solicitors would redeem (pay off) on completion of the conveyancing transaction.
- Mortgage Retention
- A Mortgage Retention is sometimes seen in conveyancing transactions. A Mortgage Retention is generally a sum of money retained from the mortgage advance by the mortgage lender in lieu of the borrower or purchaser of the property adhering to a particular mortgage condition. Seen often in conveyancing transactions where essential repairs or maintenance are required to be carried out to the property. In some cases a Mortgage Retention of the whole of the mortgage advance may be made subject to the borrower fulfilling certain conditions which will be set out in the mortgage offer. In these cases the conveyancing solicitors acting for the purchase or remortgage conveyancing client will be unable to obtain the mortgage advance until the condition is satisfied. Usually Mortgage Retentions for essential repairs will be released to the borrower on production of receipt and guarantees showing the essential repairs have been carried out successfully. In some cases the Mortgage Retention monies will be sent to the conveyancing solicitors for passing onto the purchase or remortgage conveyancing client following completion of the conveyancing transaction.
- Mortgage Term
- In conveyancing terminology the Mortgage Term is the length in number of years the mortgage will last for. Most mortgages are for a maximum period of 25 years however in recent years mortgage terms have been extended and can be as much as 35 years or more. A conveyancing solicitor will advise a conveyancing client of the mortgage term as part of the conveyancing transaction.
- Mortgage Valuation Report
- In a conveyancing transaction where a mortgage is being used a surveyor will carry out a Mortgage Valuation Report about the property for the mortgage lender to confirm the property is physically sound and represents good security for the mortgage advance. A copy of the Mortgage Valuation Report will normally be sent to the purchasing or remortgage conveyancing client and a copy should be provided to the conveyancing solicitors for checking as part of the conveyancing process. Often the Mortgage Valuation Report is not provided by the mortgage lender to the conveyancing solicitors and this may be required to be provided by the conveyancing client or mortgage broker. See also section entitled SURVEYS for a full explanation.
- Mortgagee
- Mortgagee is a term used in conveyancing and by conveyancing solicitors to describe the borrower of funds from a mortgage lender.
- Mortgagor
- Mortgagor is a term used in conveyancing and by conveyancing solicitors to describe a mortgage lender.
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