This glossary of terms has been composed by FIRST STRATA to provide you with an easily accessible and comprehensive description of the many terms frequently used in all aspects of land sales.
We trust you will find it both useful and informative.
See DISENTAILMENT.
A fee simple which will cease on the death of the descendant(s) of a tenant in tail in remainder, because the entailed interest has been barred without all the due formalities. See ENTAIL; FEE SIMPLE 1; FEE TAIL.
Rooms and other areas in a building which are below ground level and are at the lowest level except for any sub-basement, which is lower still.
The underlying rate of interest first fixed by the Bank of England and charged to other borrowing banks of the highest repute. The base rates form the foundation for other rates (and hence returns and yields) and the rate charged to a particular borrower will be fixed according to his financial status. Historically, various terms have been used to indicate such rates of interest. See BANK RATE; MINIMUM LENDING RATE.
Where there is provision in a lease for the total rent to be reviewed periodically (by some method of indexation or other formula), the minimum rent (if any) quantified in and payable under the lease, even if the review formula produces a lesser sum. See DEAD RENT; HARDCORE RENT; PRECENTAGE OR TURNOVER RENT.
Under the now repealed Development Land Tax Act 1976 there were three bases (A,B and C), the highest of which, known as the “relevant base value”, was offset against the net proceeds of the disposal to determine the realised development value.
A Stock Exchange term for a person who undertakes to sell, at a specified future date and at an agreed price, securities he does not own. He does so in the hope/belief that the requisite securities can be bought cheaper during the intervening period and transferred at a profit. Cf BULL. See BEAR MARKET.
A certificate of debt which entitles the holder to repayment with interest thereon in due course but does not require registration (or proof) of ownership.
A bond, stock or share, where no indication of the holder’s name is given on the certificate and no record of ownership is maintained in the issuing company’s records. Apart from its realisable cash value, it might give rights to dividends which would be payable on presentation of a coupon attached to the certificate. Physical possession is prima facie evidence of its ownership.
The financial market at a time when prices generally are falling, and in which “bears” would prosper.
Land covered by water at the average or mean state of the stream/river throughout the year. Whether the bed of a tidal river includes the foreshore appears to be a matter of doubt, there being conflicting decisions.
Valuations which arise where some change is contemplated in the nature of an asset being valued. The asset is valued first in its existing state and secondly on the basis that the change will be made. The difference between the two values can provide a measure of the likely gain or loss due to the change. The method is also used in such cases as:
a. injurious affection on compulsory purchase; and
b. planning compensation, eg following a revocation order.
See GAZEBO.
In land surveying, a physical reference point of known level above, or below, the selected base level, eg sea level. Commonly, a mark placed upon a permanent object of sufficient substance as to be unlikely to move, such as a rock, stone plinth or building. See ORDNANCE SURVEY.
An interest in property held by a beneficiary who is not necessarily the owner of the legal interest, eg where a legal estate is owned by a trustee (trustees) under a trust entitling the beneficiary to the financial rewards available after meeting all due obligations.
The physical possession and control of land and/or buildings in a manner entitling the occupier to full use and enjoyment of the premises. See RATEABLE OCCUPATION.
One enjoying beneficial occupation.
1. A person enjoying or entitled to property for his own benefit, not, for instance, as a trustee who holds the legal estate in land for the benefit of another. The owner of the legal estate is usually the beneficial owner, but if the legal estate is vested in trustees, the beneficial owner has only an equitable interest. He is then known as the beneficiary or cestui que trust.
2. The person who is the real owner of a security, and thereby entitled to all consequential benefits, as distinct from a nominee who holds securities on behalf of another.
A person entitled to benefit, eg under a trust or will. See BENEFICIAL INTEREST; CESTUI QUE TRUST.
In assessing the financial potential of projects, the ratio of the total discounted value of the benefits to the sum of the discounted costs. This is a discounted cash flow technique.
