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S32
buy-out bond
- a form of pension policy used to transfer benefits
from an occupational scheme to a money purchase arrangement but maintain the
GMP element.
schedule
of payments
- schedule of monthly payments under a loan
sealing
fee
see
discharge fee.
second charge
- a legal charge that ranks behind a first charge,
possibly to secure a second mortgage, or a guarantee given to secure other
borrowings.
second home
- an alternative to your main residence - subject to
Capital Gains Tax! See also:
holiday home.
second mortgage
- a further loan on a property which ranks after
the first charge mortgage.
second jobs
- sources of income other than an individual's main
employment.
self-build
- a property, the construction of which is controlled
by the borrower; not a finished unit. Loans on self build properties will
normally be advanced in stage payments and are subject to strict limits on
loan to value. A qualified architect will need to be involved and lenders
will frequently look for the builder to have NHBC or Foundation 15
guarantees.
self
certification
- 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.
self
employed
- working on one's own account. 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, e.g. a shop and upper part.
shared equity
- method of property purchase in partnership with a
builder (vendor) who offers an incentive for the prospective buyer by
accepting, say, 95% of the purchase price to be paid on completion and the
other 5% to be paid at some stated time in the future. The builder will
normally register a second charge on the property until the remaining 5% has
been paid. The 5% owing may be on an interest free basis or interest may
accrue and be added to the debt. Unlike shared ownership, there is not
normally a monthly payment commitment.
shared ownership
- 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
homeowners. Under most arrangements, the minimum purchase amount is 25% of
the property value with the remainder available to be purchased in blocks of
25%.
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 set a fair rent. 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
offer document, that apply to a particular loan offer.
special status or non-status
- unwilling or unable to provide the necessary
documentary evidence of income and status.
stabilised rate
- mortgage where a notional rate is set designed to
be a true reflection of the likely average rate over a period. The borrower
makes payments each month based on this rate, but the rate charged to the
account may vary in line with market conditions. These products are designed
to protect borrowers from wildly fluctuating interest rates. Whilst highly
popular in the late 1980s they became discredited when some lenders set
unrealistically low notional rates resulting in borrowers' being faced with
a considerable increase in the loan amount outstanding.
stamp
duty
- government land tax of charged as a percentage of
the purchase price of a property. Charged on all property purchases over
£60,000, percentage varies by price.
standard construction
- constructed of brick with a tile or slate roof.
Lenders may be less inclined to provide funds on properties of non-standard
construction. However, the definition is generally accepted to extend to the
main mass-building techniques that have not subsequently been found to have
greater potential for defects.
standard property
- a detached, semi-detached or terraced house or
bungalow.
start-up business
- a new business venture without a trading record.
structural survey
- the widest form of inspection that can be
undertaken by a Chartered surveyor. In the case of properties with movement,
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.
studio flat
- flat comprising a single habitable room, plus
bathroom and possibly separate kitchen. Many lenders will not lend on these
properties as they are considered more difficult to resell.
subsidy (mortgage)
- a payment made by an employer to subsidise the
cost of interest payments on a home loan. The amount and extent of the
subsidy will vary from employer to employer and these can be calculated in a
variety of different ways. It is advisable to seek a specific statement from
your employer on the operation of the arrangement.
sum
assured
- the maximum amount payable under a policy of
insurance. In the case of a life assurance policy this is the amount payable
upon death. Under a general insurance policy it is the maximum amount that
can be paid out in the event of a claim. The sum assured under a general
policy must be adequate to represent the full value of goods at risk. If an
insurer feels that a policyholder has not declared the full value of goods
at risk and a claim occurs, the insurer may reduce the claim by applying
average.
survey fee
- see
valuation fee, home-buyer's survey fee.
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S
S32 buy-out bond
schedule of payments
sealing fee
second charge
second home
second mortgage
second jobs
self-build
self certification
self-employed
semi-commercial
shared equity
shared ownership
sitting tenant
sole occupancy
special
conditions
special status
stabalised rate
stamp duty
standard
construction
standard property
start-up business
structural survey
studio flat
subsidy
(mortgage)
sum assured
survey fee
Introduction
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