Terminology

Assignment
The transfer of lease in its entirety from assignor to assignee

Assignor
The party disposing of their existing lease.

Assignee
The party taking over the lease.

Bank Guarantee
Documents supplied by lessees bank to guarantee an agreed amount of money in the event of the lessee forfeits the lease.

Building Insurance
The landlords insurance policy against damage/destruction of the property

Business rates
Local taxes charged to the occupier by central government.

Break Clause
Date at which a lease can be terminated having given prior written notice. This is agreed prior to completion and usually can be exercised by either landlord or tenant.

Building survey
Report carried out by qualified Chartered Surveyor advising on he structure and repair of the property.

Completion
Conclusion of legal formalities and legal transfer of ownership to the lessee/purchaser.

Contract
A legally binding document incorporating all the relevant terms of the negotiation

Covenants
The terms within the lease under which the lessee is legally bound

Deposit
A sum of money paid by the buyer on exchange of contracts.

Dilapidations
Repairing obligations to which the lessee must comply with at the end of the lease.

Exchange of contracts
The point at which the parties are legally committed to conclude the transaction with an agreed timescale.

Ground rent
The annual rent(normally nominal)charge levied by the freeholder to the long leaseholder.

Lease
Agreement entered into by landlord and tenant setting out the terms and obligations under which the tenant occupies the premises.

Legal Costs
Costs and fees paid to solicitors for dealing with legal documentation.

Lesser
The party offering a lease

Lessee
The party agreeing to take the lease

Listed building
A building that has been designated as being of special architectural or historic interest. Alteration to listed building are heavily censored.

Local authority search
Search undertaken by a solicitor to local council regarding any outstanding enforcement.

Peppercorn ground rent
A nominal rent paid to the freeholder.

Premium lease
Sum of money paid upon assignment for the benefit of the lease..

Purchaser
A person who is buying a property.

Rent
A sum of money paid by the  tenant to landlord for beneficial occupation of the property. Normally charged quarterly in advance.

Rent Deposit
A sum lodged with the landlord which can be used in the event that lessee forfeits the lease.

Rent Review
A date at which the rent will be review. Normally this review is on an upward only basis at the anniversary of the third or fifth year.

Service charge
Charge levied by landlord to cover costs of all management services in relation to the running of the property.

Serviced Offices
Short term occupational solution where accommodation is let on a monthly renewable licence on a fully inclusive basis.

Sinking Fund
Collection of service charge money in advance. Normally created in anticipation of future major works to the building.

Stamp duty
A tax paid to the government by the purchaser. Amount paid on a sliding scale  of between 1% and 4% depending on value of the property..

Subject to Contract
Words to indicate that the document does not form part of the legally binding contract.

Tenant
An occupier that is taking a lease from the landlord.

Tenant
A person who has temporary possession of a property.

Tenure
Definition of  type of property either leasehold or freehold.

Title deeds
Documents showing the legal ownership of a property.

Under offer
The stage at which outline terms have been agreed prior to exchange of contracts.

Use
Restrictions  on how the property can be used. I.e. retail, business or industrial.

Vendor
The party selling a property.