Search Fee: Before the final legal documentation on a property purchase is completed it is necessary to check with the local authority that there are no plans that will affect the value of the property. A fee is charged by a solicitor or conveyancer for this service.
Second Charge: A legal charge that ranks behind a first charge. It could be used, for example, to secure a second mortgage, or as a guarantee to secure other borrowings.
Second Home: An alternative property to the main residence which is subject to capital gains tax.
Second Mortgage: A further loan on a property which ranks after the first charge mortgage.
Secured Loan: A secured loan is one that is secured using a property as collateral.
Self Build: A property, the construction of which is financed and controlled by the borrower; not a fully finished property. Loans on self build properties will normally be advanced in stage payments and are subject to strict limits on loan to value.
Self Certification Mortgage: A mortgage loan where the borrower makes a statement of his or her income and the lender makes fewer checks than normal on the accuracy of this statement. Often used by the self employed.
Self Employed: An individual working for themselves and not in the employ of a second party. For mortgage purposes this will include partners in unlimited liability businesses and professional practices.
Semi Commercial: A property that has at least part commercial use. A semi-commercial mortgage is a loan on security that is not entirely used for residential purposes, for example, a shop.
Shared Ownership: A method of property purchase in partnership with a housing association. The borrower purchases part of the property and rents the remainder from the housing association. Also known as co-ownership, this arrangement is designed for people who could not otherwise become property owners. Under most arrangements, the minimum purchase amount is 25% of the property value, with the remainder of the property value available for purchase in blocks of 25%.
Simple Valuation: A short property survey. This survey establishes the value of the property, but it does not establish its structural condition.
Sitting Tenant: A person having a legal right of occupation, even if the property changes ownership, and who is able to apply to the local authority to have a fair rent set. Properties with sitting tenants are generally worth at least 30% – 40% less than their open market value with vacant possession.
Sole Occupancy: A property that is occupied by the borrower and his, or her immediate family only. No paying tenants are in residence.
Special Conditions: Specific terms, usually outlined on the mortgage document, that apply to a particular loan offer.
Stamp duty (residential property): This is a tax that is paid on purchasing a new property. The more expensive it is, the more tax that is paid. This tax is charged at 1% on properties costing up to £175,000 (until 2 Sept 2009) to £249,999; 3% on properties costing from £250,000 to £499,999, and 4% on properties costing over £500,000.
http://www.hmrc.gov.uk/so/rates/#1
Standard Variable Rate Mortgages (SVR’s): After the discounted period, unless a borrower switches to another mortgage deal, the interest rate charged will revert to the lender’s SVR. Borrowers are generally advised not to stay on their lender’s full SVR for too long, as it will normally be a few percentage points higher than the more competitive initial deal rates available. Remaining on the SVR will make loan repayments more expensive. If there is a cut in the Base Rate, some lenders may pass this on to the SVR, but it is by no means guaranteed.
Stepped discount mortgage: This type of mortgage is similar to a discount mortgage, except that the percentage discount changes at several points during the loan period. For example, a two-year stepped mortgage product could carry a discount of 2% off the lenders’ SVR in the first year, and 1% discount in the second year, before reverting to the lenders’ SVR at the end of the deal period.
Structural Survey: The most comprehensive form of inspection on a residential property that can be undertaken by a surveyor. In the case of properties with movement/subsidence, lenders may require a structural engineer’s report. This is a different type of survey carried out by a chartered building engineer and should not be confused with a structural survey.
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Survey: An inspection carried out for the benefit of the mortgage lender to establish that the property represents a good security for a loan. This inspection should not be relied upon on when deciding whether to purchase a property or not. Purchasers should obtain either a house/flat buyer’s report, or a full structural survey before proceeding with a purchase.