This guide explains some commonly used conveyancing terms. If you encounter these words during the course of your transaction and are not wholly certain of their meaning or effect, please do not hesitate to ask for clarification.
Once a lease is transferred the assignee becomes responsible for paying rent and fulfilling all other obligations under the lease. However, in the event of a default the landlord may be able to revert to the original assignor.
The outgoing tenant gives an AGA to the landlord if it assigns the lease, guaranteeing that the incoming tenant or assignee will pay the rent and observe the covenants specified under the lease.
A clause in a lease allowing either or both parties to have the ability to terminate the lease early.
Capital value is the value of an asset without including its rental income.
A detailed report setting out the manner in which a tenant has failed to comply with their covenants to keep the property in full repair and condition.
Total area within the perimeter walls of a property.
A guarantor agrees to be responsible for a tenant’s obligations under a lease, should the tenant default.
The landlord is the person who grants the lease or who has the right to enforce the terms of a lease. The landlord is also sometimes known as the “Lessor”.
A contractually binding agreement that grants a right to exclusive possession or use of property under mutually agreed terms and conditions between the landlord and tenant, usually in return for a periodic payment called rent.
The agent instructed to oversee the property including property maintenance management services, or landlord and tenant services.
Lease contracts generally contain clauses providing for a periodical review of the rent with details of the basis for review i.e. market value or by reference to the Retail Price Index.
Service charges are paid by the owner and cover the cost of providing various services.
Commissioned before the signing of a lease in order to determine the condition of the building so that any existing defects and their repair costs are identified prior to committing to a law-abiding agreement to rent the property.
Tax payable to the Government, which is calculated on the purchase price of a property. For commercial properties up to £150,000 there is no SDLT, for properties between £150,000 and £250,000 the SDLT is charged at 1%, for properties purchased between £250,000 and £500,000 the SDLT is calculated at 3% and for properties over £500,000 SDLT is calculated at 4% of the price.
When the tenant lets part or all of the premises to a subtenant.
Deposits held on behalf of tenancy agreements with the Tenancy Deposit Scheme (TDS). Designed to protect the tenant’s deposit and the landlord’s property during a lease term.
The person who rents the property from the Landlord. Also referred to as ‘Lessee’ or ‘leaseholder’.
The period of time in which the property is rented.
The Town and Country Planning (Use Classes) Order 1987 as amended (the “UCO 1987”) specifies uses of land and buildings into various “use class” categories. While some use classes can be converted to other use classes, others may require planning permission.
