Lien

What is Lien?

A Lien is a form of Security (Collateral) that is sometimes used when taking out a loan. The Lien is the lender’s right to sell the collateral should the borrower fail to make repayments in an attempt to recoup their losses.

In legal terms, the owner of the property (the borrower who grants the Lien) is referred to as the Lienor and the person who has the benefit of the lien (the person granting the loan and accepting the security) is referred to as the Lienee. When a loan is fully paid off, ownership of the lien is handed over to the owner.


Q: Is lien the same as a mortgage?

A: In a sense: the mortgage will include a Lien on the property that you have taken the mortgage out on, granting the lender the right to repossess the property should repayments not be made.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews