Glossary of Terms
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
A
Annual Percentage Rate (APR) the total cost of a loan, plus costs, interest charges and fees shown as a percentage rate. Apartment Suite of rooms forming a residence; a flat.
Assignment A document of transfer
Auction Public sale where property is sold to highest bidder.
B
Basement Apartment Property below or partly below ground level. Basic Variable Mortgage Rate Mortgage lender's standard rate of interest which varies depending on prevailing economic conditions. Bridging Loan Temporary loan providing finance to allow a purchaser to complete the purchase of a new property before selling their current property. Bungalow Single storey house. Buy-to-let A special type of mortgage designed for people buying a property with the intention of letting it out.
C
Capital Sum of money on which interest is calculated. Capped Mortgage Agreed for a fixed period of time with an upper limit on the interest rate. If the standard interest rate is lower than the fixed upper limit the lower rate is charged, when the standard variable rate is higher the agreed rate is charged. Chain A chain of buyers and sellers all relying on each others property sale going through in order to complete their purchase. Completion The final stage in the sale. The point where ownership changes hands. Contract Legal agreement between buyer and seller committing them to sell and buy the property for an agreed price. Conveyancer Person qualified to conduct the trasference of property ownership. Conveyancing The legal process of transferring property from one owner to another.
D
Deeds Legal document of property ownership unattached to any other property. Development An area of land with new properties or existing buildings converted for residential use. Disbursement Fees paid by the buyer's solicitor on the buyer's behalf such as stamp duty, land registry and search fees. Draft contract First, unconfirmed version of the contract. Duplex An apartment situated on two floors of a block.
E
Endowment mortgage A mortgage linked to an insurance policy, which is intended to repay the capital sum on maturity. Equity The difference between the value of a property and the amount of mortgage owed. Exchange of contracts Signed contracts are exchanged, legally committing both buyer and seller to the property sale at the agreed price.
F
Fixed Rate A mortgage where the interest rate is fixed for an agreed period of time.
Fixtures and fittings A term for all non-structural items included in the property purchase e.g. carpets, curtains.
Freehold Ownership of the property without limitation of time.
G
Gazumping A seller accepts a higher offer on their property from a third party when they have already agreed to sell to someone else. Ground Rent The annual charge by the freeholder to the leaseholder.
H
L Land registry fee A fee, which is paid to the Land Registry to register ownership of a property. Lease A legal document by which the freehold (or leasehold) owner of a property lets the premises or a part of it to another party for a specified length of time. Leasehold The ownership of the property is by way of a lease for a specified period of time. Listed building Property listed as being of architectural or historic interest, which cannot be altered without local government consent. Home Buyers Survey and Valuation A type of survey report carried out by a chartered surveyor, not as detailed as a full structural survey.
Local Authority Search An enquiry made by a buyer's solicitor to the local council regarding any issues or future development issues which may affect the property or immediate area.
MN
Mortgage Deed A legal document containing the terms of a mortgage and the lenders rights and interests in the property.
O Offer The amount of money the buyer offers to pay for the property. OIRO Abbreviation of 'offers in the region of'. ONO Abbreviation of 'or nearest offer'.
R Retention When part of the loan is held back until specific repairs have been completed.
S Sale Agreed When a sale has been agreed between buyer and seller. Semi detached A property that is attached by one side to another property. Service Charge Maintenance charge paid for communal building services. Sole Agent Only agent acting on behalf of the seller. Stamp Duty A tax paid on a property by the buyer when the value is over £60,000. Studio Flat Open plan living where living, eating and sleeping quarters are in the same room. Subject to Contract Phrase to indicate that a legally binding contract is not yet in place. Surveyor Person qualified to carry out a survey.
T
Tenancy The right to live in a property, subject to agreement. Tenancy Agreement The contractual terms and conditions between a tenant and landlord. Tenure Length of lease. Terraced house Property that forms part of a row of houses. Title Deeds Legal documents showing ownership. Transfer Deeds Legal document that transfers ownership between buyer and seller.
U Under Offer When an offer has been accepted by the seller but no legal contracts have been exchanged.
V Vacant Unoccupied property. Valuation A value placed on the property. Vendor Term used for the seller. Viewing Appointment for potential purchaser/tenant to visit property.
