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Mortgage Glossary: A

Glossary of Terms
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Abandonment	Abandonment refers to the surrendering of a legal right or interest in land or property. For example: if a tenant decides to leave their accommodation empty for long periods without giving up their tenancy, landlords are not able to automatically assume that their tenancy is over. Abandonment means that the tenancy is over and the landlord has regained possession of the property.
Accelerated Possession	Accelerated Possession occurs when a landlord can regain possession of their property. For this to happen, all necessary procedures need to have been completed, but there is not usually a need to have a formal county court hearing.
Accommodation Agency	Accommodation Agencies are governed by the accommodation agencies act of 1953, and are bound to provide details of properties to let. This service is usually provided to tenants for a fee.
Adverse Credit	Adverse credit is applied to borrowers who have had problems with their credit in the past, including CCJS, IVAs, defaults or arrears.
Adverse Possession	Adverse Possession also goes by a far more commonly used name – “Squatter’s Rights.” Any squatter who occupies land or property for a period of at least 12 years without the consent of the owner may be granted a legal title.
Agent	An agent is a person who acts on behalf of another person and has the authority to form legally binding contracts on the principal’s behalf. Agents can include: Estate Agents, Letting Agents, Managing Agents, Commercial Property Agents and Insurance Agents. They can take responsibility for all kinds of different sales, letting and management roles.
Amortization	Amortization refers to the method by which loan repayment proceeds. Most loans start out heavily interest oriented, then gradually pay of more and more capital as time goes buy.
Appraisal	Appraisal is an estimate of the value of your property when conducted by a licensed appraiser.
Apportionment	All liability and benefit is apportioned depending on the parties involved. For instance, tenants in an HMO can be charged rates or service charges depending on how much of the house they occupy, etc.
Arbitration	Arbitration is a method of resolving a dispute, usually involving an independent arbitrator. RICS (Royal Institute of Chartered Surveyors) provide a service of this type. This type of service can be useful for rent reviews and contract disputes. Arbitration includes the Small Claims Procedure.
Assured Tenancy	Assured Tenancy now encompasses most residential tenancies. An agreement of this type allows the landlord to charge market rent, and makes the proviso that the landlord in certain circumstances can regain the property. Assured Tenancy conforms with the Housing Act 1988 and the Housing Act 1996.
Assured Shorthold Tenancy	AST is a form of assured tenancy allowing landlords the absolute right to repossesses their property at the end of a fixed 'shorthold' term mortgages.
Accident Sickness Assurance (ASU)	Accident, Sickness & Unemployment Insurance will pay out to protect mortgage repayments should the borrower be unable to work. This comes into effect if the borrower falls sick, has an accident or faces voluntary unemployment. ASU will usually not protect the borrower beyond a 24-month period.
Annual Percentage Rate	APR is the overall figure regarding loan interest. This allows comparison between the actual interest paid on different types of loan.
Arrangement Fee	The Arrangement Fee is the sum of money charged by lenders for setting up the loan. Most mortgage products come with an arrangement fee, and in some cases a high arrangement fee can be used to secure a lower rate of interest.
Assignment	Assignment refers to the transfer of interest in the property. This generally occurs when a tenant transfers a lease, with the consent of the landlord, to another tenant (known as the assignee) before the set term expires. This is more common in commercial property.
Auction	A property auction can be the place to grab a bargain buy to let property. At auctions, property is sold to the highest bidder at the drop of a hammer.

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