Genesis Associates Mortgage Definitions "L" (866) 410.4410

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Definitions of Mortgage Terms

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Land - Includes not only the ground or soil, but also everything that is attached to the earth, whether by course of nature as trees and herbage, or by the hand of man, as houses and other buildings. It includes not only the surface of the earth but everything under it and over it. Condominium Acts divide land horizontally thereby limiting the vertical ownership. It includes dwellings, tenements (rents), hereditaments (property that can be inherited) whether corporeal (tangible) or incorporeal (intangible) and any undivided share in land.

Land Titles System - This is a system of land registration under which the registrar or master of titles passes on the validity of the instrument, determines its legal effect, and the Government guarantees title.

Charge - An additional charge a borrower is required to pay as penalty for failure to pay a regular installment when due.

Lead Lender - A financial institution that heads up a financial consortium or syndicate of two or more lenders to provide funds for a mortgage.

Lease - A contract between landlord (lessor) and tenant (lessee) for the occupation or use of the landlord's interest in a property by the tenant for a specified period of time and for a specified consideration (rent).

Lease Guarantee Insurance - Insurance that protects the owner of leased commercial and industrial real estate loss of rental income through the failure of a tenant to make rental payments.

Leasehold - An estate or interest in an estate in real property held by virtue of a lease for a term of years. A leasehold is considered personal property.

Leasehold Mortgage - A mortgage given by a lessee on the security of their leasehold interests in the land.

Legal Description - The written geographical (metes and bonds) description of a property as described in the land register.

Legal Mortgage - A mortgage which results from the law alone, e.g. legal mortgage of minors, interdicted persons, or the crown.

Lending Value - The property value for mortgage purposes. Usually, the lesser of appraised value or sale price.

Lessee - Tenant.

Letter of Instruction -Detailed directives and guidelines most commonly associated with mortgage funding, which are provided to the solicitor by the lender when advancing funds in accordance with a mortgage commitment.

Letter of Opinion -A brief letter setting out an estimate of value, typically with only limited details concerning the property.

Loan to Value Ratio (LTV) -The ratio of the loan amount to the lending value of the property.

Locational Obsolescence -Depreciation resulting from loss of value due to negative influences from external factors, e.g., railway tracks and commercial uses directly adjacent to residential property.

Lock-In -An option within a variable rate mortgage in which the borrower can lock-in (fix) the interest rate during the mortgage term. Also known as a convertible option.

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