Jargon Buster
Grounds for Possession
If a landlord wishes to regain possession of their rental property, they may refer to certain ‘grounds’ for eviction when applying to the courts.
Guarantor – Buyers
Someone who co-signs another person’s tenancy or mortgage agreement and agrees to pay any outstanding rent or mortgage payments, if the tenant or borrower are unable to.
Guarantor – Lettings
A lettings guarantor is someone nominated by a tenant to cover their financial obligations should they be unable to do so.
Letting agents will often request a guarantor if a tenancy applicant’s affordability is stretched.
Handover
Handover refers to the point where a landlord allows a tenant occupation of their property.
Head Landlord
The Head Landlord is a person or company that owns the freehold of a property let out to a tenant.
Holding Deposit
A holding deposit may be put down by a potential tenant to secure a rental property while referencing is carried out. Holding deposits are capped at no more than one week of rent.
Housing Act Tenancy
A Housing Act Tenancy refers to tenancies that fall under the Housing Act 1988 and Housing Act 1996.
Initial term
A tenancy’s initial term is the period that its first fixed term lasts.
Inland Revenue FICO Number
Letting agents are given an Inland Revenue FICO number, which is required by overseas landlords completing an NRL1 form for overseas tax purposes.
Instruction
When a seller decides on an estate agent to act for them, this is known as an ‘instruction’. The seller will then sign a terms of business agreement and agree to the agent’s terms.
Inventory
A property inventory is a detailed list of the condition of a property just before a tenancy begins.
Inventories should also list all fixtures and free-standing items included at the start of the tenancy.
Joint Tenants and Tenants in Common
If two or more people own a property equally, they’re known as Joint Tenants.
When one tenant passes away, their share in the property automatically transfers to the other tenant(s).
Tenants in common, however, can own different shares of a property and their share passes to their estate on death, rather than the other tenant(s).
