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L.T.V. (LOAN-TO-VALUE RATIO)
The ratio of the loan to the lending value of a property, expressed as a percentage.

LAND ACQUISITION LOAN
Loan advanced to acquire land as opposed to improving land or buildings.

LAND CONTRACT
A contract drawn between a buyer and seller for the sale of property.

LAND DEVELOPMENT LOAN
Loan advanced for the purpose of developing raw land for residential and related uses.

LEASEHOLD
A type of interest in a property that is certain only for a specified period of tie granted by contract.

LEASEHOLD APPRAISAL
A method of estimating the value of leasehold property.

LEASEHOLD MORTGAGE
A mortgage given by a lessee on the security of the leasehold interest in the land.

LEGAL DESCRIPTION
A written description by which property can be definitely located, and which is acceptable for registration in a land registry system.

LEGAL MORTGAGE
A transfer of a legal estate or interest in property for the purpose of securing the repayment of a debt.

LENDING VALUE
An independent appraiser's value interpreted by the lender as to the worth of a property in the current market given a reasonable time period to sell the property.

LESSEE
Tenant under a lease.

LESSEE æS INTEREST
The market value of property less the value of the leassor's interest. The present worth o the annual advantage, if any, accruing to the lessee by reason of the contract rent being less than the economic rent.

LESSOR
The person who grants us of the property under lease to a tenant.

LETTER OF COMMITMENT
Letter written by the lender containing the amount of the loan, specified interest rate, term of loan, and specific conditions.

LETTER OF CREDIT
Letter issued by a bank or other lending institution promising payment to a third party in accordance with the terms of the agreement. Letters of credit may be used in situations where a deposit is required or a security, eg. Where a builder is about to sign a contract and has to put up security that the job will be finished; or a security deposit under a long term lease.

LEVERAGE
Upside leverage in real estate occurs when the yield or net return on property exceeds debt service for a loan. Downside or reverse leverage occurs when the debt service is greater than he net return on investment.

LIEN
A legal claim against a property for money owed.

LIEN HOLD BACK
A percentage of the contract price or estimated cost of work to be done which is held back from the mortgage advance.

LINE OF CREDIT
A maximum credit limit allowed by a bank to a borrower, as long as the borrower maintains an acceptable balance on account or has a good credit rating. The credit line will vary from time to time according to the changing circumstances of the borrower or the bank.

LIS PENDENS
A legal document giving notice that an action or proceeding is pending in the courts which affects the title to the designated property.

LOAN COVERAGE
The ratio of net operating income to debt service - in general loan coverage of 1.3 to considered adequate for a loan to value ratio of 75%.

LOAN FEE
A charge for making a loan in addition to the interest charged to the borrower.

LOAN LOSS RESERVE
A reserve shown on a balance sheet of a real estate company as provision for any future losses in assets.

LOAN ORIGINATION
Analysis of loan applications from prospective purchasers to determine if they meet with requirements and if so, the lender will issue a commitment letter.

LOAN PORTFOLIO TURNOVER
The average length of time required for the turnover of mortgage loans, ie. until maturity.

LOAN PROCESSING
Upon application and approval of a loan, the lender has to go through a fairly standard procedure to finalize and disburse the loan such as the setting up of files, ordering of credit reports, verification of employment, bank accounts, etc.

LOAN RATIO
The ratio of the principal amount of the loan to the lending value of the property.

LOCK-IN CLAUSE
A clause which restricts prepayment of a loan during a specified period of the whole term of the mortgage. This ensures that the lender receives a stipulated return on his investment and discourages shopping around for another loan.