The Glossary

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The Letter L
This section provides information on terms and phrases beginning with the letter L
At the grabber we know finance is full of confusing terms and phrases, and so on this page we explain:
Leasehold | Loan Security | Loan Term | Local Authority Search | LTV | Loyalty Card

Leasehold

Leasehold means that a particular property is owned rather than rented but often the land on which that property is built is not owned directly by the properties owner, but instead is held under a lease for a set number of years. When the lease expires, the property returns to the freeholder, that is the person or business that holds the deeds to the land. Shops, business premises and flats are commonly sold on a leasehold. Leasehold properties range in duration from between six months to nine hundred and ninety nine years.
A property on which the leasehold is running down and will revert to the freeholder can find that its market value is being adversely affected.

Loan Security

Loan security is a guarantee for a lender to assure them that if the borrower defaults on the capital lent, they will have an avenue to pursue when attempting to recover the debt. The guarantee is usually something that retains it value over time such as property. When a loan is applied for the lender may ask for protection for the loan before agreeing to lend the finance. The security, usually the borrowers home, could be seized and or sold in the event of the loan being defaulted on or simply not paid and attempts at contact ignored. Since this process involves the courts, customers will be given ample opportunity to repay their arrears or arrange to pay them subject to agreement with the lender.

Tenant Loans

Tenant loans or unsecured loans, are not linked to any underlying security, such as property, meaning that the lenders have to pursue the customers in the county courts to recover debt in the event that they fail to repay the loan or default.
If you are after information the Grabber has a tenant loans section.

Homeowner Loans
Homeowner or secured loans, are protected by being secured on an already mortgaged property. With the secured home owner loan, the property may be at risk of being seized and sold if borrowers do not keep up with repayments. How much the sold property raises as nothing to do with the value of the property since the courts may insist on a quick sale. The finance lent will then be used to repay any outstanding creditors.
If you are after information on home loans the Grabber has a homeowner loans section.

Loan Term

Term is the period of time over which finance borrowed is to be repaid. Many finance products come established with terms already arranged however other lengths of terms may be available subject to the customers individual circumstances and with the consent of the products lender.
The length of personal loan terms can vary.
When a loan has a short term the monthly repayments could be substantial in size, although this does mean that the total interest paid for the loan will be lower.
With a personal loan with a longer term, monthly repayments could be smaller in size and easier to manage, although this means that the total interest paid for the loan will be higher and thus the loan will cost more in total.

Local Authority Search

When you are buying a property the conveyancing process is carried out by your conveyancer, this is usually a solicitor. The local authority search is based on how your local council's services may affect the property and its surrounding. Such as proposed road improvements, and details of any planning permission given for the property or nearby property which may overlook your building. The search will only take in the immediate vicinity around the property and the results will only be current for a limited time, which is worth noting if the process of home buying is taking time.
If you are after property information the Grabber has a mortgage section.

LTV

LTV is short for loan to value. The loan to value is typically given as a ratio expressing the size of the mortgage as opposed to the value of the property. That is the current market value of the building.
Some mortgages lenders better value mortgage products may only be available if customers are borrowing less than a set proportion of the value of the property. Mortgage lenders offer more favourable deals to customers who are contributing a sizeable deposit themselves towards the property and thus are wanting to borrow a smaller mortgage amount. This means a lesser risk to the lender of an unrecoverable debt.
The loan to value ratio only really comes in to play in a flat or falling property market. Mortgage lenders could begin to worry about being left with a hard to sell property should the borrower fall behind with their repayments. Indeed if the housing market and prices fall far enough, the mortgage lenders could face having to sell the property for less than the remaining amount of the mortgage. Then they face being unable to easily recover the debt owed to them.
For visitors interested the Grabber has a section on property finance.

Loyalty Card

Loyalty cards are a plastic card that rewards its holders for shopping at a particular shop or chain of stores. Loyalty cards can not be used to draw cash as they offer no line of credit to their holders, so they can not be used to make purchases and you can't run up a balance the issuers can charge interest on.
Some loyalty cards offer money off particular ranges of products, so if you buy those items you will save money. This can create a two tier pricing structure where customers can be punished for not carrying the loyalty card, but where you are rewarded for using them. If you shop regularly at a store it makes sense to carry the loyalty card but be aware it does not mean that store will always be the cheapest.

Got a piece of jargon you want explaining, it's time to let The Grabber loose.

Associated Pages
low cost remortgage | low cost mortgage