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Glossary - N
National House Building Council (NHBC) Scheme – The NHBC runs the Buildmark scheme which covers homes built by NHBC registered builders for ten years once the NHBC has certified them as finished. The Buildmark scheme will, for example, protect a client’s money if the builder goes bankrupt after contracts have been exchanged but before completion.
Negative Equity – When the market value of a property is lower than the outstanding mortgage loan balance.
Negligence – The breach of a contract or a tort which is committed carelessly or inadvertently as opposed to deliberately. The breach of a duty of care under common law or statute law owed to an individual, a specific group or the public at large.
Net Effective Rent – Rental rate adjusted for lease concessions.
Net Income – The net income from a property investment after taking away ground rent and any other applicable expenditure.
Net Initial Yield (NIY) – ???
Net Yield – Uses the costs attributed with purchasing the property into account, thereby producing a more detailed position of the relationship between total capital investment and rental income.
Nil Increase – When the outcome of a rent review has been documented causing no change in rent due to the market rental value being the same or below the current amount of rent.
Notice to Quit – Bringing a tenancy or a licence to an end (termination of the tenancy or licence) requires that certain procedures are followed, depending upon the type of tenancy, for the action to be fully legal: 1)The serving of a notice to quit by either landlord or tenant (or licencee) (2) The serving of a notice of intention to seek possession by the landlord.
Nuisance – interference with enjoyment of, or rights over, land. There are two kinds of nuisance: Private nuisance affects a particular occupier of land, such as noise from a neighbour; the aggrieved occupier can apply for an injunction and claim damages. Public nuisance affects an indefinite number of members of the public, such as obstructing the highway.