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 REQUISITION 1.
1. A structure erected along a coastline where there is a risk of tidal seawater rising to such a level that might otherwise flood the coastal area. It may be constructed of stone blocks, banks of shingle, pebbles, reinforced concrete or earth banks of sufficient height to contain the highest water level.
2. For taxation purposes (capital allowances), defined in section 30(1) of the Taxes Act 1988 as an embankment “…necessary for the preservation or protection of the premises against the encroachment or overflowing of the sea or any tidal river”.
Evidence which, by its nature, suggests the existence of better evidence but is normally admissible if there is a satisfactory explanation for the absence of the primary evidence.
See HEARSAY EVIDENCE.
See PRIORITY OF MORTGAGES.
A trust, the existence of which is not disclosed in the document transferring the property to the intended trustee. It usually arises when the property has been given by a testator (less often by a settlor) to a person who has separately expressly or impliedly agreed to hold the property on trust for a third party.
Under section 4 of the Development of Tourism Act 1969, a capital grant made by a tourist board towards the cost of a tourist project.
An agreement between a developer and the local highway authority under section 40 of the Highways Act 1980 whereby the authority will adopt one or more roads to be constructed by the developer.
A legally enforceable agreement between the local planning authority and the owner of any land in their area made under section 52 of the Town and Country Planning Act 1971. It restricts and/or regulates the development or use of land: eg the owner, in connection with a planning permission, may undertake to carry out works for the benefit of the community. Cf CONDITION 3. See PLANNING GAIN.
An abbreviation for section 776 of the Taxes Act 1988 (formerly section 488 of the Taxes Act 1970), which is intended “to prevent the avoidance of tax by persons concerned with land or the development of land.” Assessments under this section are made by reference to Schedule D Case VI. See SCHEDULES.
A ground rent, payable to a superior landlord, usually the freeholder, related to the underlying value of the land which, being developed, provides an additional security to the extent that the development enhances the value of the property. It is, therefore, a ground rent having a reduced risk of irrecoverability in part or in whole should there be default on the part of the ground lessee. Cf UNSECURED GROUND RENT.
A debt where, on default by the borrower, the lender has a legal right to sell something (the security) which is likely to command a price in the market sufficient to cover the debt and all costs incurred in recovering the amount of the debt, together with any accrued or unpaid interest and costs of disposal. This reduces the risk of loss by the lender in default of repayment.
A rent having a reduced risk of irrecoverability in part or whole by virtue of the relevant property’s:
a. producing a higher rent than the secured rent payable;
b. having a higher rental value in the market; or
c. being the subject of a rental guarantee by a third party or substance.
Defined by section 79 of the Housing Act 1985 as a tenancy under which a dwelling-house is let when satisfying the conditions described in sections 80 and 81 of the Act. Under section 80 the landlord must be one of a list of bodies, including a local authority, a new town or urban development corporation, a charitable housing trust and certain classes of housing association, whilst under section 81 the tenant (or each of joint tenants) must occupy the dwelling-house as his only or principal home.
1. In property ownership, the policy and practice of protecting a building, its contents and its occupiers against those who enter it for illicit purposes.
2. A certificate in the form of a share or stock in a company, showing right of ownership. Also, colloquially, extended to mean the investment itself.
3. An asset which is legally nominated to be available to a lender for realisation and recovery of money owning following default by the borrower. See SECURE LOAN.
1. The right of a tenant to remain in possession of demised premises in accordance with the terms of the tenancy.
2. The statutory right of certain classes of tenant to remain in occupation of demised premises beyond the expiry date stipulated in their existing lease or tenancy. The three principal classes of tenant who enjoy such security are those who occupy certain residential, agricultural or business premises. The rules, constraints, exceptions and conditions applicable to these classes are contained in the specific legislation, ie the Rent Acts, the Agricultural Holdings Acts or Part II of the Landlord and Tenant Act 1954, respectively.
In feudal times a person was seised of land or had the seisin thereof when he was in possession of it. The expression is now reserved for possession by a freeholder.
Defined by section 1(3) of the Housing Associations Act 1985 as “a housing association whose object is to provide for sale to or occupation by its members’ dwellings built or improved principally with the use of its members’ own labour".
A market in any property or commodity where the circumstances are such that the seller has an advantage over a potential buyer to the extent that he can command a higher price than otherwise would be obtainable. In a classic situation this arises when there are more potential buyers than sellers. Cf BUYER’S MARKET.
The sum which a vendor states that he is prepared to accept whether or not it is the price he eventually accepts. Cf SALE PRICE.
