Homeowners 'lack knowledge' of property jargon

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Homeowners 'lack knowledge' of property jargon

Thu 7th Jun 2007

Many people looking to invest in bricks and mortar for the first time lack a knowledge of basic but fundamental terms relating to the housing industry.

Research carried out by AA Legal Services indicates that two-fifths of first-time buyers do not know the difference between a leasehold and freehold property.

Approximately a fifth of consumers do not know what a freehold mortgage is, while almost half are uncertain about what a leasehold mortgage is.

Knowledge among young homebuyers between the ages of 18-24 is the worst across the age group, with less than two-thirds knowing what the term freehold and leasehold meant.

With mortgage lending having increased by almost a fifth in the last year, the group has launched a new campaign to promote greater information levels about the housing process among consumers.

James Molloy, head of AA Legal Services, said: "Our research suggests that many homebuyers are so desperate to get onto the property ladder that they may be over-looking vitally important basic legal principals."

He said that AA Legal Services wanted to help the public "understand legal issues in plain English, so that they can make informed home buying decisions and feel in control of the process".

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