Ever read a piece of estate agent jargon and wondered what on earth we’re going on about?
Well today’s the day you find out!
Below we have listed some of the most common property terms you might come across when buying, selling, letting, or renting...and a few uncommon ones, too!
Let’s get this list started, shall we?
Acceptance - Usually issued by lenders, acceptance is a document buyer’s need to sign in order to ‘accept’ the lender’s mortgage offer
Additional Mortgage Security Fee - a one-off premium which is paid to a broker up-front, commonly when the loan exceeds 75% of the property value
Advance - The amount a lender is willing to lend
Agricultural Covenant - A planning condition which permits the building of a property for residential purposes providing that home is occupied by someone who is going to work the land surrounding it in some way
Appraisal - Usually conducted by an estate agent, an appraisal is determines the value of your home (see ‘Valuation’ below)
APR (Annual Percentage Rate) - The rate of interest payable on your mortgage annually
Arrangement Fee - An administrative fee that is sometimes charged by lenders for the arrangement of a mortgage
Assignable Contract - A contract of exchange that permits the sale of a property before the date of completion
AST (Assured Shorthold Tenancy) - A type of tenancy agreement that allows the landlord to claim back their property after a designated period of time
Auction - A method of purchasing property where buyers go head to head with others and bid in order to determine the sale price
Base Rate - The benchmark interest rate set by the Bank of England that is commonly used by most lenders to set their own rates
BMV - This stands for Below Market Value and means pretty much what it says, that a property is valued below what it could potentially fetch on the open market
Booking Fee - Same as an arrangement fee (see above)
Bridging Loan - A loan that allows the buyer to purchase a new property prior to the sale of their existing property being sold
Break Clause - Commonly used in tenancies, often alongside an Assured Shorthold Tenancy (see above). This clause allows either party to exit the contract before the expiration date, providing the correct notice period has been given
Buildings Insurance - Cover for your property that includes structural issues you may incur during your ownership
Buyer - The person who is purchasing a property
Buy-to-let - Term used for either a property purchased for the purposes of renting (letting) or a mortgage associated with said purchase
Capital and Interest Mortgages - See Repayment Mortgages below
Chain - Properties linked together that need to exchange contracts at the same time in order for a sale/purchase to go through
Chain Free - A sale or purchase that is not reliant on other parties exchanging contracts at the same time
Collateral - A guarantee of sorts, usually the value of the property, that ensures the lender will have their loan repaid by the sale of the home should you default on your payments
Completion Date - The date that sees the property transaction finalised and ownership is transferred from seller to buyer
Compulsory Purchase Order (CPO) - a legal order which grants local authorities that need to obtain land or property the power to do so without the owner’s prior consent
Contents Insurance - Insurance cover for the accidental damage or theft of any personal, or moveable, items within the property
Contract - A formal agreement between seller and buyer, usually prepared by a conveyancing solicitor, which details the terms and conditions of the property sale
Conveyancing - The legal process behind the transference of property
Covenant - Tenancy agreement terms that include all of the obligations expected of both the tenant and landlord
Deeds - Legal documentation associated with a property that confirms ownership
Default - Failure to make pre-arranged mortgage payments
Deposit - A financial lump sum paid from buyer to seller, usually held by solicitors, as a pledge of contract
Disbursements - Expenses paid by the conveyancing solicitor on behalf of the buyer
Discounted Tracker Rate Mortgage - Avariable rate mortgage that is discounted for a designated period and usually based on the current interest rate set by the Bank of England.
Early Repayment Charge (ERC) – A charge incurred by the borrower to the lender should they decide to pay off their loan before the agreed term expires (may also be referred to as an Early Repayment Penalty in some instances)
Easement - This is where a landowner has the right to make use of a piece of land, which is close to theirs, for their own benefit
Energy Performance Certificate (EPC) - A way of measuring the efficiency of a property in terms of energy usage with a scale that runs from A through to G (with A showing the greatest efficiency and G showing the least)
Equity - The difference between the market value of a property and the outstanding loan amount owed on the home
Exchange of Contracts - The time when a sale becomes legally binding and neither party can pull out without financial penalties
Fixed Price - No offers accepted other than those which match or exceed the asking price
Fixed Rate Mortgage - A mortgage with a rate that doesn’t change for a designated period of time
Fixtures and Fittings - Any items that are not deemed structural
Flying Freehold - This occurs when part of a freehold property overlaps part of a different freehold property or piece of land
Freehold - ownership of the property and the land that the property is situated on.
Gas Safety Regulations - Regulations that need to be adhered to by landlords in terms of gas safety. A gas safety check must be carried out by Gas Safe CORGI registered engineer prior to a tenancy commencing, and then annually for the duration of the tenancy, and handed to the tenant
Gazumping - This is where a seller accepts one offer only to reject it when a better offer is made by a third party
Gazundering - This happens when a buyer lowers their initial offer just prior to contracts being exchanged
Ground Rent - An annual amount paid by the leaseholder to the freeholder of a property, often with service charges payable as well
Guarantor - A person who agrees to guarantee repayment of a loan or debt for another should they not be able to make payments
HMO (House in Multiple Occupation) - As the name suggests, these are properties that house multiple residents. They are also subjected to different rules and regulations than standard rental properties
Home Buyers Report - A document covering the structural condition of readily accessible areas of the property
Instruction - Simply means that a seller has told an estate agent to place their property on the market. Can also be applied to conveyancing solicitors as well, i.e. you instruct a solicitor to carry out the conveyancing of the property transaction on your behalf
Inventory - A list of all the property’s contents, as well as the property’s condition and the state of the structural fixtures, commonly used in Assured Shorthold Tenancies
Joint Tenancy - Two or more people living in one property
Joint Agency - Two estate agents working together to sell a property
Joint Mortgage - When two or more people are responsible for the mortgage
Land Certificate - Documentation proving property ownership
Land Registry - A governmental body that holds records of all registered properties in both England and Wales
Land Transaction Tax - As of April 2018, buyers purchasing property in Wales are charged a land transaction tax rather than stamp duty
Land and Buildings Transaction Tax - This is the tax payable by property purchasers in Scotland
Leasehold - This is where ownership of a property is obtained but not the land that it is built on. Payment of ground rent to the landlord is also a normal requirement of a leasehold property
LTB (Let to Buy) - The process of letting out a current residential property, for the purpose of purchasing a new residential property
LTV (Loan-to-Value) - The percentage of the loan amount in relation to the market value of the property at the time of purchase
Maintenance Charge - A charge made towards the upkeep of a leasehold property
Mortgage Broker - An advisor who can arrange your loan for you, potentially getting a better deal than you’d find elsewhere
Mortgage Deed - A document that lays out the conditions of a mortgage secured on any given property
Mortgage Offer - A document from a bank or building society offering you a property loan as well its terms and conditions
Negative Equity - When the property value is less than the outstanding balance of a mortgage
Offer - An amount (or bid) by a buyer to a seller indicating the price they are willing to pay for a property
Open Market Value (OMV) - A property’s likely value in an open and balanced market
Overpayment - The act of paying more than the minimum amount off of your mortgage each month in order to shorten the length of the term and lessen the amount of interest you’ll need to pay
PCM - Stands for 'Per Calendar Month'. Often associated with rental property prices, i.e. the amount you’d need to pay the landlord every calendar month
Public Liability Insurance - Cover that provides indemnity against injury or death to anybody in or around your property
Referencing - Checks carried out on behalf of a landlord in order to ensure prospective tenants are who they claim to be and are able to meet the letting requirements laid out by the landlord
Release Clause - See ‘Break Clause’ above
Repayment Mortgage - A mortgage that pays of both interest and principal by way of regular monthly installments
Repossession - The unfortunate process of taking back the property in order to sell it and make good on a bad debt should the borrower be unable to pay
Right to Rent - Controversial government legislation that legally binds landlords to check that any potential tenants are living legally in the United Kingdom and, therefore, have the right to rent property here
Right to Buy (RTB) - The right for any tenant who has lived in a council-owned home to buy the house or flat at a discounted rate
Searches - Usually conducted by conveyancing solicitors, these ‘searches’ are simply checks of local council records to see if there are any outstanding planning applications or restrictions in place on the property in question
Shared Ownership - Commonly provided by housing associations, Shared Ownership is a scheme that allows first-time buyers a chance to buy a share of a home (usually between 25% and 75%), and then pay rent on the remaining amount. The percentage owned can be increased by way of ‘staircasing’ until full ownership is made
Snagging - This term is most commonly associated with new build properties and simply means to ‘make good’ on minor faults, such as missed paintwork, appliances not fitted correctly, etc.
Snagging Survey - Usually conducted before the buyer moves in to a new build home so that workmanship can be assessed and issues addressed
Sold Subject to Contract (SSTC) - A term that indicates an agreement to purchase a property has been made but contracts are yet to be exchanged
Stamp Duty - A tax paid by the buyer to the government on completion of a property sale
Survey - A property inspection carried out by a qualified surveyor
Tenancy Agreement - Tenancy terms and conditions document which stipulates what is and what isn’t expected of a tenant
Tenants - Those living in a property that is owned by a landlord
Title - A legal right to property ownership
Tracker Mortgage - A mortgage with a rate that moves up or down with the Bank of England’s base rate (see Base Rate above)
Transfer Deeds - A Land Registry document that transfers legal ownership from seller to buyer
Under Offer - When the seller has accepted an offer on their home but contracts have not yet been exchanged
Variable Rate Mortgage - A mortgage with an interest rate that can change at any time
Vendor - Another word for the person selling the property, the seller
Vetting - The process of conducting background checks on potential buyers or sellers prior to purchasing
Verbal Offer - An offer that is not legally binding made verbally by the purchaser
That’s it! A full list of property verbiage and vocabulary so you can easily translate regularly used estate agent jargon without scratching your head.
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