Leasehold Definitions - Jargon Buster

15 definitions for letter I:

Insulation

Insulation of the cold wall can help, or if it is already insulated, a vapour check should help to keep it dry and thus to maintain its insulation value. Vinyl-faced paper is one of the easiest vapour checks to install. Adding insulation such as 5mm (0.2 in.) thick expanded polystyrene also helps. None of these improvements should be made before the wall is completely dry.

IFA

Independent Financial Advisor.

Improvement rate (in the context of Lease extension & Freehold Purchase)

The rate by which the value of a flat increases by virtue of it having a long lease as opposed to a short lease

Indemnity

Building societies operate in accordance with the Building Societies Act. This provides that the maximum advance they can make on a property without additional security is 75% of the purchase price or surveyor's valuation for pre 1919 properties, and 80% for post 1919 properties. When a society lends in excess of this percentage, the excess is guaranteed by an indemnity policy. A single premium is payable by the purchaser when the mortgage is taken out.

Individual savings account (ISA) mortgage

An interest-only mortgage linked to an Individual Savings Account fund. It is designed to pay off the loan at the end of the period.

Informal tender

Requires competing buyers to submit their best bids by a specific time and date. It is not a legally binding contract.

Interest charges (mortgage)

Interest charges are the percentage of the amount borrowed that the Lender then charges to the Borrower.

Interest only mortgage

An interest only mortgage stays the same throughout the mortgage term. When choosing an interest only mortgage, the purchaser is responsible for ensuring that they have sufficient funds available to repay the mortgage at the end of the term.

Interest-only mortgage

An interest-only mortgage that remains unchanged through the lifetime of the loan. Interest is paid monthly and a separate premium is paid to an investment instrument each month. By the end of the term, the proceeds from the investment instrument are supposed to be sufficient to repay the principal of the mortgage. The borrower is liable to ensure that this is the case.

Intermediate Landlord

An intermediate landlord (often called a head lessee) may be the person to whom you pay ground rent, as the intermediate landlord holds a finite leasehold title (as you do) they in turn will have to pay ground rent to the Freeholder. An intermediate landlord may make profit from his title, this would be because the ground rent he collects from all the lessees in the block exceeds the ground rent he has to pay the freeholder. And/or an intermediate landlord may hold a reversionary interest this could arise because the head lessee was granted an interest in the building for say 125 years and you as an under lessee were only granted a term of 99 years. This would mean that for 26 years the head lessee has a right to your flat before he would have to give it back to the Freeholder.

Inventory

A list describing the condition of furnishings and the contents of a leased property at the start and end of a tenancy, in order that any dilapidations during the tenancy can then be identified.

Investigation Prior To Alteration

Likely to involve a number of specialists, this survey is required to test the structure and the services of a building prior to any designated alteration to that building.

IEE 16th edition

A version of the IEE regulations

Insurance proposal

A form filled in by a person wanting to procure/take out an insurance policy declaring certain facts to enable an insurance provider to give a premium or terms quotation.

Insurance schedules

A summary of insuance cover, as opposed to the full policy, which sets out key policy terms and conditions such as extent of cover (in pounds) and key exclusions (such as subsidence) and excesses (monetry amounts that would be excluded in settling a claim)