The Better-Mortgages uk mortgage terminology glossary (L)

As with any industry, the world of mortgages has it's own language and definitions. Use the definitions in this glossary to look up uk mortgage terminology you are not familiar with.

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Land charges

Rights over unregistered  land are recorded as Land charges. Various different classes of charge can be registered at the Land Charges Registry if the title to the property is unregistered. The most common are Class C(IV) charges (puisne mortgages) and Class F charges, indicating the interest of a spouse under matrimonial homes legislation.

Land Charges Registry

The registry where rights over unregistered land are noted is called the Land Charge Registry. When unregistered land changes hands, the conveyancer searches this register to determine whether rights exist over the land.

Land Registry

The body responsible for recording details of real estate (land) in England and Wales is called the Land Registry. It keeps three registers -  property, proprietorship, charges.

Land Register of Scotland

The body responsible for land registration in Scotland is called the Land Register of Scotland and was established by the Land Registration (Scotland) Act 1979.

Lands Tribunal for Scotland

The body to which Scottish disputes concerning ownership or rights over land can be referred is called the Land Tribunal for Scotland. The person bringing the dispute also has a right of appeal to the Court of Session.

Leasehold

A form of land tenure whereby a person has rights over a piece of land or property for a specific period, is called Leasehold. Most residential leases have long terms, and those with leases of over 21 years can legally buy out the freehold or extend the lease under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993.

Legal charge

The main type of mortgage deed used in England and Wales is called a Legal charge.

Legal date of redemption

The Law of Property Act 1925 (mainly applicable only to England and Wales) specifies the many powers of mortgage lenders become available once the Legal date of redemption has passed. This is therefore set by lenders as a date shortly after the mortgage is completed so that these powers can be invoked.

Life Insurance ( Life Assurance )

An insurance which insures the policy holder against against death, or terminal illness where the life expectancy is less than 12 months is called Life Insurance ( or Life Assurance ).

Loan to value ( LTV )

When the mortgage value is expressed as a percentage of the property value it represents the Loan to value (or LTV) rate. So a mortgage for 85% of the property value has an LTV of 85%.

London inter-bank offer rate ( LIBOR )

This is the interest rate at which banks in the UK borrow and lend money between each other. It is possible to obtain a mortgage based on the London inter-bank offer rate,  known as a LIBOR mortgage.  

Low cost endowment policy

A common investment product sold alongside interest-only mortgages throughout 1980s, the Low cost endowment policy was designed to provide enough money to repay the capital borrowed at the end of the mortgage term. Mis-selling scandals and poor investment performance of this type of product has more or less killed it off as a mortgage repayment method.

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