A to Z of Finance (Jargon Buster) - The Letter L

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole range of finance terms so you won't get caught out.

Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Leasehold

This means you own a property rather than just rent the property for a set number of years. When the lease expires, the property returns to the freeholder. For example shops and business premises are commonly sold on a leasehold agreement

Local Authority Search

When you buy a property the conveyancing process is carried out by your conveyor, usually a solicitor. This search looks to see how your local council's services may affect the property. Things such as proposed road improvements, and details of any planning permission given for the property or nearby property are recorded.

LTV

This term is used to describe the Loan to Value ratio. The size of the mortgage you require compared to the value of the property. An example: a £80,000 mortgage on a house valued at £92,000 would mean a LTV of 85%. You would then require a 15% deposit.

Typical, variable APR is 10.9%. Rates range from 7.7% to 18.3%
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP MORTGAGE OR DEBT REPAYMENTS SECURED ON IT
THINK CAREFULLY BEFORE SECURING ANY OTHER DEBT ON YOUR HOME. NON PAYMENT OF ANY LOAN CAN AFFECT YOUR CREDIT RATING

Every effort has been made to ensure that the facts here are correct. No liability is accepted for any errors contained herein or for any loss resulting from actions taken.