Early Repayment Charge (ERC)
A charge levied by the lender as a penalty if a mortgage is paid off within a specified period.
A term given to a right which someone may enjoy over another property. These can be rights of way, drainage rights, or more likely access to a neighbour’s land in order to carry out repairs to their own property.
Electrical Equipment (Safety) Regulations 1994
Regulations that require all electrical installation and appliances within the property are maintained in good order and regularly checked for safety by an appropriate registered engineer.
A liability imposed on the owner of a property, which is then binding on subsequent owners.
Interest-only repayments combined with monthly premiums into an endowment policy designed to pay off the loan at the end of the term.
These are not as popular as they were, and involve both building society and an insurance company. Repayments to the building society are in respect of interest only. The capital sum outstanding remains constant throughout the term, and is repaid by means of an endowment policy taken out with the insurance company when the policy matures or in the event of death of the policy holders.
Energy Performance Certificate (EPC)
An EPC measures the energy efficiency of a property using a scale of A-G. It is a legal requirement to have a valid EPC for their property.
Deeds are usually drawn up in draft form for approval by each party’s solicitors. When the deeds are approved, sometimes after amendments, the final drafts are then engrossed for all parties to sign.
The difference between the value of a property and the amount of mortgage owed.
The initial sum paid on an insurance claim.
Exchange of contracts
The point at which signed contracts are physically exchanged, legally committing the buyer and seller to the purchase and sale of a property at the agreed price. The time at which a deposit (generally 10%) is paid.