Lease: A contract between landlords and tenants for a possession of space for a specified amount of rent. Leases are used for all types of properties.
Leverage: The use of borrowed funds to finance a portion of the cost of an investment.
Liquidation value: The likely price that a property would bring in a forced sale (foreclosure or tax sale). Used when a sale must occur with limited exposure time to the market or with restrictive conditions of sale.
Liquidity: The ability to convert an investment into cash quickly without loss of principal.
Loan balance: The amount of money remaining to be paid on an amortizing loan at a given time.
Loan or mortgage value: That portion of the value of real property recognized by the lender when used to secure a loan.
Loan point: A charge prepaid by the borrower upon the origination of a loan. One point equals one percent of the loan amount.
Loan-to-value ratio (L/V): The amount of money borrowed in relation to the total market value of a property. Expressed as the loan amount divided by the property value.
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