Glossary of terms
The Shared Equity UK scheme is a new innovative product, and so
we have developed some of our own set of terms to help describe
how it works. You’ll find definitions & explanations of
those terms here.
Agreed Share
This is the percentage (ratio) share of the property which has been
agreed between the Co-Buyers. Ie 50:50, 60:40, 30:70 etc.
Appointed Legal Advisor
This is your legal representative appointed to you by Let’s
Move to act for you during the conveyance process. They are specialists
and fully familiar and conversant in the Shared Equity UK scheme.
Asking Price
This is the price set by the Vendor of a Property or their agent,
sometimes used to test the market. This is not necessary the agreed
purchase price of the Property and often can be negotiated down
and is not necessarily representative of the Value of the Property.
Buy-to-Let
The common term for the practice of buying a property specifically
for the purpose of renting it out to tenants. This has become quite
popular in the UK over the last 5-10 years.
Capital Gains
The increase in property value. i.e. when property prices rise,
the difference between the price originally paid for the property,
and the price you sell it for later is the ‘capital gain’.
Capitalising Your Investment
When we invest, we put time and/or money into something, in the
hope that it will be worth more later on. Capitalising your investment
is the action accessing that increased value, e.g. by selling your
Shared Equity UK Property.
Case-Study (ies)
Shared Equity UK Case Studies are based on actual properties. Our
Case Studies are purely for illustrative purposes only and indicate
to you examples and costs associated with purchasing and investing
in a Shared Equity UK Property.
Co-Buyers (You)
In our terms, the Co-Buyers are You and your Shared Equity UK Investor-Buyer,
i.e. The Home-Buyer (You) and the Investor-Buyer. Although Let’s
Move (or our nominated Management Company) are signatories to the
Co-Buyers Contract with the Co-Buyers, we do not own any part of
your Shared Equity UK Property.
Co-Buyers Contract (Agreement)
This is the contract signed by the Owner-Buyer, Investor-Buyer &
Let’s Move (or their nominated Management Company). It has
been designed to protect the interests of both Co-Buyers and sets
out what Let’s Move (or their nominated Management Company)
will do during the property’s occupancy. You will need to
take Independent Advice before signing the contract.
Co-Buyers Share
This is the part of your Shared Equity UK Property that you own.
If you have a 50% share, then your Investor-Buyer will own the other
50% of the property. This Co-buyers Share will be held within a
legal document called Trust Deed. Any Shared Costs or Capital Gains
will be divided according to your Co-Buyers Share of the Property.
Complete, Completion
A Conveyance term used to describe the end of the conveyance process
with the successful legal transfer of ownership.
Conveyance
This is the act of transferring property title from one person to
another.
ERC (Early Redemption Charge)
This is a fee required by a Lender if you reduce the loan within
their minimum period. Details of each Lenders ERC are available
from your allocated Shared Equity UK Mortgage Adviser. The ERC may
be longer than the minimum period stipulated in the Shared Equity
UK Co-buyer’s Contract. For example, you may select a five
year, fixed-rate mortgage, which has an ERC if you want to reduce
the loan or sell the property entirety within the fixed-rate period.
Exchange of Contract
The legal point of time when the Vendor and purchaser swap documentation
and start enquiries with a view to settlement. You are also legally
obliged to Complete on the purchase at a pre-defined date in the
future with penalties and repercussions if you do not.
Exit Route
How you leave your Shared Equity UK Property, whether you move house,
sell your Co-Buyers Share on the open market or sell your Co-Buyers
Share to your Shared Equity UK Investor-Buyer.
Fees
This includes all payments made to Let’s Move. Full details
of all fees are included within our information pack and are separate
to any professional fees you may need to pay for associated with
your property purchase.
1. Commitment Fee
As the name suggests is a fee you pay us which demonstrates your
commitment to The Scheme. This fee is only refundable in the event
you have been turned down by our panel of Lenders for a Mortgage.
2. Shared Equity UK Purchase Fee
A fee which is paid to us on Completion of the Property purchase.
Financial Advice
A Financial Adviser can tell you which Mortgage, insurance or Investment
options are best for you. Let’s Move does not provide Financial
Advice. We only provide information about the Shared Equity UK scheme.
Financial Advisers are authorised and regulated by the FSA, which
Let’s Move are not.
FSA
The Financial Services Authority is the regulatory body for all
financial services in the UK.
Home-Buyer
This is a term widely used throughout our information pack, the
Co-Buyers Contract and this site. They are the buyer and part Co-Buyer
of the property who is buying a Property to live in.
Independent Advice
Let’s Move works with financial and legal professionals who
will help you in the purchase of your Property. However, signing
the Shared Equity UK Co-Buyers Contract is an important decision,
we require that you take independent legal advice before you sign.
That means taking advice from a solicitor who is not a member of
our panel.
Independent Legal Adviser
This is your independently chosen solicitor who shall provide you
with independent legal advice should you require it and before signing
and agreeing to be bound by the Shared Equity UK Co-Buyers Agreement.
Illustration
A Shared Equity UK Illustration is prepared without obligation and
at no cost. Whether you want to be an Owner-Buyer or an Investor-Buyer,
an Illustration is used to give you an idea of what a given property
may cost and what savings you might be able to make. We can also
use an Illustration to tell you what you are likely to be able to
afford, based on your deposit amount and maximum monthly payment.
Our Illustrations do not represent Financial Advice and you are
advised to seek professional advice and assistance with regards
to this matter.
Improvements
Anything that is done to the Property which could potentially add
Value to that Property.
Investor-Buyer
This is a term widely used throughout our information pack, the
Co-Buyers Contract and this site. They are the buyer and part Co-Buyer
of the property who is buying a Property for an investment and does
not live at the Property. They receive an Investor’s-Return
in exchange for their help, and a share, proportional to their Co-Buyers
Share, of any Capital Gains when the Property is sold.
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Investment (s)
Is defined as- the outlay of money, for example by depositing it
in a bank or by buying shares in a company, with the object of making
a profit or a contribution of something such as money, time, energy,
or effort to an activity, project, or undertaking, in the expectation
of a benefit.
As a Home-Buyer or Investor-Buyer your Shared Equity UK purchase
is an Investment for your future.
Investment Opportunity
Is an Owner-Buyers chosen Property BEFORE they have been matched
with an Investor-Buyer. We may market the chosen Property to our
investors as an Investment Opportunity.
Investor Ready
Is the term we use to indicate to the Home-Buyer that the Property
is available together with a suitable Investor-Buyer , ready to
co-buy and invest.
Investors Return
Is the payment that the Home-Buyer makes to the Investor-Buyer.
This is additional to the Mortgage payment that the Home-Buyer makes
each month, and is the monthly payment due to the Investor-Buyer
for his Co-Buyers Share of the Shared Equity UK Property.
Lender (s)
A mortgage lender (s), normally a bank or building society. The
Shared Equity UK Scheme has it’s own panel of Lender(s).
Let’s Move (Us)
This is the name of the company which owns and operates the Shared
Equity UK scheme.
Long-Term Investment
In our terms, this means an Investment which you will not want to
realise for between 3 years and 7 years from it’s start. A
Long-Term Investment is one which maximises it’s returns over
the longer term, rather than the shorter term.
Maintenance
This is anything which becomes necessary to keep the general condition
of the Property in good order.
Mortgage Adviser
A suitably qualified person(s) who can offer you advice on Mortgage
products.
Approved Mortgage Adviser
A suitably qualified person(s) vetted and approved by Us to offer
advice on Mortgage products.
Mortgage
A mortgage is a financial loan made for the purpose of purchasing
a Property. This is normally taken over 25 years and secured against
the Property, so that the lender can take ownership of the property
if the Mortgage payments are not maintained.
Offer
We refer to 2 types of offer
1. An Offer on a Property
This is where the Home-Buyer has found their Shared Equity UK Property,
looked at the asking price of that Property and decided what amount
of money they would like to suggest that they pay for that Property.
An Offer is either accepted or refused by the Vendor of the Property
or their Estate Agent. Let’s Move can help advise as to the
offering on a Property and in some instances negotiate for you directly
with the Vendor or their Estate Agent.
2. Mortgage Offer
A Mortgage Offer is a response to your Mortgage application, which
our Approved Mortgage Advisor will assist you with. A Mortgage Offer
is made when the Lender decides that they would like to loan the
money for your Property purchase to You. A Mortgage Offer is made
in writing and is required to allow your purchase to proceed.
Part-Buy, Part-Co-Buy
This is a common term which we use to help describe the Co-Buyers
relationship. It implies a partly owned verses a partly shared arrangement
between two or more parties.
Portfolio
Normally used with reference to an “Investment Portfolio”.
An Investment Portfolio is the set of investments that a person
holds, e.g. in shares, property and pensions. A Shared Equity UK
Investor-Buyer may be the Co-Buyer for more than one Shared Equity
UK Property. If so, their Shared Equity UK Portfolio would be the
collection of Properties in which they have bought using the Shared
Equity UK scheme.
Property (ies)
When we use this term we are usually referring to bricks-and-mortar.
A Property in the Shared Equity UK
scheme may be a studio, flat or house — they are all Property.
Purchase Deposit
The amount paid by a buyer when contracts are exchanged. It is usually
ten per cent of the agreed Purchase Price.
Purchase Price
The agreed price to be paid for the Property by the buyer to the
Vendor on Completion.
Shared Costs
These are costs such as stamp-duty which are split between Home-Buyer
& Investor-Buyer when the Property is purchased. Full details
of which costs are Shared Costs are outlined within this site.
Shared Equity UK
Is the name given to the product and refers to our process of bringing
an Home-Buyer and Investor-Buyer together for the purpose of purchasing
a Property for the Home-Buyer to live in and the Investor-Buyer
receives a low risk Investment.
Shared Equity UK Mortgage
A Shared Equity Mortgage is a term used to describe a special kind
of Mortgage which has been developed by our Lenders to support The
Scheme, as ordinary Mortgages are not suitable. Let’s Move
has developed a panel of reputable Mortgage Lenders to provide a
variety of Mortgages to our Co-Buyers.
Shared Equity UK Property
Is the Property which has been acquired using the Shared Equity
UK scheme.
Shared Equity UK Sale
This is when you wish to sell your Shared Equity UK Property. There
are different ways you can sell as an Home-Buyer or Investor-Buyer,
these are outlined in our information packs and form part of the
Co-Buyers Contract.
Survey
A Survey is a study of a Property carried out by a professional
surveyor. Mortgage Lenders require that a valuation survey is carried
out before the purchase goes ahead for any Property which they are
lending on. The cost of this survey is borne by the Co-Buyers of
the Property. There are also other types of surveys available which
a buyer may wish to commission as well. These carry additional costs.
Tenants in Common
This is a legal term which is used to describe the type of ownership
that the Co-Buyers hold over their Shared Equity UK Property. In
essence it means that both parties own the Property, but that if
one of them dies, for example, this person’s Agreed Share
does not get passed to the other Co-Buyer.
The Scheme
When we refer to The Scheme, we mean the Shared Equity UK scheme.
Typical Costs
These are costs that, to the best of our knowledge, are likely to
be incurred when purchasing through The Shared Equity UK scheme.
Value, Valuation
A report as required by the Lender, detailing a professional opinion
of the Property's value.
Vendor
The person offering their property for sale onto the open market
and/or potentially offering for sale using the Shared Equity UK
scheme.
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