Glossary – I

Improvement Grant – A Grant given by a local authority to contribute towards the cost of repairing or improving a building.

Incentive – An incentive consists of a payment(e.g. contribute to tenant’s furnishings) or rent-free period for a tenant, to entice him/her to take on a new leasehold contract when the current lease is granted or assigned.

Indexation – The common process of linking the review of the tenant’s payments to a published index such as the Consumer Price Index(CPI) or the Retail Price Index(RPI).

Individual Savings Account (ISA) Mortgage – Mortgage which is constructed for month repayments to be paid specifically into an ISA. The ISA is then used to pay off the loan at the end of the term.

Injunction – A court order which prevents or restrains someone from doing or continuing to do some act (propitiatory injunction) or one directing someone to do some positive action (mandatory injunction)

Instruction – Assignment by a property owner to an estate agent to market the property.

Insurance – A policy that distributes financial reimbursement to the landlord or tenant of a property and its contents, in the event of damage or theft over the policy period.

Interim Rent – The rent payable from the earliest date on which the tenancy could have been brought to an end by the relevant Section 25 notice, or the tenant could have given in its Section 26 notice for initiation of the new tenancy

Interim Schedule of Dilapidations – Main intention is to determine any breach of the lease and organising any work to remedy the breaches within a set period of time. It can be served at any-time after lease initiation but usually before the last 18 months of the lease.

Internal Rate of Return (IRR) – The IRR is the interest rate at which the net present value of all the cash-flows(positive & negative) from an investment equal zero.

Internal Repairing Lease (IRL) – An internal repairing lease stipulates that the tenant is responsible for all the repairs to the internal fabric. While the landlord is responsible for the external repairs, plant and machinery (for example boilers and lifts). Leases of this kind are usual in multi-tenanted buildings.