| A |
|
APR
'Annual Percentage Rate' which relates to the
interest on a loan
Applicant
How an estate agent may refer to the potential
buyer of a property
Assignment
The transfer of ownership from one person to another |
| B |
Base
Rate
This is the lowest rate of interest a bank will
charge when it lends you money. It is used as
a benchmark to set interest rates for borrowers.
This rate set by the Bank of England and is reviewed
several times a year and lenders will charge borrowers
a margin above the base rate
Bridging
Loan
A short term loan to enable you to purchase your
new property before you sell your current home |
| C |
|
Capped
Rate
The maximum interest rate you will pay on your
loan. This is normally fixed for a set period
of time
Chaintop
A sequence of buyers and sellers. As most
people buying a property will also be selling
there can often be a 'chain' of buyers and sellers
where each is dependent on the other for the successful
purchase of their new home. If one buyer or seller
drops out it may mean that other people in the
'chain' may not be able to complete their move
Charge
The term used for the security that the lender
relies on when granting a mortgage
Chattel
An item of portable property such as furniture
Collateral
Your house is 'Collateral' when used as a guarantee
you will repay a loan to your lender
Completion
This is the final stage of the property buying
process - when the agreed sale price has been
paid by the buyer to the seller. Legal ownership
has been transferred from the seller to the buyer
of the property
Conditions
of Sale
The terms by which the buyer and seller agree
to sell/buy the property. The Law Society sets
standard conditions. The lawyer sets special conditions.
Contract
This is the agreement that once signed by the
buyer and seller binds both parties to the sale
and purchase of the property
Conveyancing
The legal process that transfers property ownership
from the seller to the buyer
Covenant
A requirement by law on the owner of a property
to either do or not do something with their property |
| D |
|
Deeds
Legal title document which provides historical
information about the property.
Dilapidations
Any disrepair or damage to a rented property.
Disbursements
Fees paid by the buyer's solicitor on the buyer’s
behalf such as stamp duty, land registry and search
fees. |
| E |
|
Early
Repayment Charge
This is a fee payable if you pay part or all of
your mortgage off earlier than agreed
Easement
A right given to the house owner over an adjoining
property (e.g. right of way).
Energy
Performance Certificate (EPC)
This document will usually form a key part of
the Home Information Pack and gives details about
the energy efficiency of the property and its
CO2 impact, plus information about measures that
could be taken to improve the energy efficiency
of the property. EPCs can only be produced by
suitably qualified Domestic Energy Assessors and
copies are held in a secure central register.
Equitable
Interest
When a person has some legal rights to a property
but not including sale of the property
Equity
The difference between the market value of your
property and the amount you still owe to the lender
Exchange
of Contracts
The point at which the buyer and seller are legally
bound to complete the sale
Execution
Only
A service with no advice, just carry out the orders
of a customer |
| F |
|
Fixtures
& Fittings
Items in a house that can be included in the sale.
For example lighting fixtures, carpets and so
on - these items should be agreed / confirmed
before a sale
Freehold
Complete ownership of a piece of land and the
property that is on it |
| G |
|
Gazumping
This is when a vendor (seller) accepts an offer
but later rejects it to accept a higher offer
by another buyer
Gazundering
This is the opposite of gazumping - when the house
buyer lowers his offer after the sale has been
agreed.
Ground
Rent
This is rent paid annually by the leaseholder
of a property to the owner of the freehold. Usually
it is paid to the owners of the land on which
the property/properties are built
Guarantor
A person who agrees to guarantee that they will
pay a debt or loan if you default on payment |
| H |
|
Home
Information Pack (HIP)
Also known as a 'Sellers Pack' it is a set of documents
providing important information about a property
such as searches, copies of the deeds and information
regarding its energy efficiency. This will be mandatory
from the 1st of June 2007 and has to be produced
by a home owner BEFORE a property can be put on
the open market. For more information on HIPs, click
here. |
| I |
|
Instruction
This is when you give an estate agent 'Instructions'
or the right to sell or let your property
Interest
Only Mortgage
A mortgage where your monthly payments only cover
the interest due on the loan, which remains constant
for the period of the loan. It is usual to have
some sort of investment vehicle in place to repay
the mortgage at the end of the term. |
| L |
|
Land
Certificate
The certificate that proves ownership of land
issued by the land registry
Land
Registry
The government office that stores records of land
ownership and any charges like a mortgage
Lease
A legal document detailing an agreement made between
a freeholder and those occupying their property
for a specified period of time. It lists all the
conditions which the leaseholder must abide by
and what the landlord's responsibilities are
Leasehold
Land or property is 'leasehold' when the owner
has to pay the freeholder an annual sum of money
Listed
Building
One officially listed as being of special architectural
or historic interest, which cannot be demolished
or altered without (local) government consent.
Local
Authority Search
Procedure whereby a buyer's solicitor makes an
enquiry to the local council regarding any outstanding
enforcement or future development issues which
might affect the property or immediate area.
LTV
Loan to Value. A percentage expressing size of
mortgage:value of house.
For example; House Value=£100,000, Mortgage
Size=£90,000. Loan-to-Value=90% |
| M |
|
Mortgage
Indemnity Guarantee (MIG)
An insurance premium some lenders may need you
to take out on certain mortgages
Mortgage
A loan to help you buy your house. The loan is
secured on the property to prevent you selling
the property without paying it off at the same
time.
Mortgage
Deed
A document which has the details of a mortgage
arrangement
Multiple
Agency
More than one agent markets your property, the
one that sells it gets the commission. This commission
will normally be higher than with a sole agency
agreement. |
| N |
|
Negative
Equity
When you owe more than the market value of your
property
NHBC(National
House Building Council) Scheme
A type of building guarantee available on newly
built homes under which defects occurring within
a specified time after construction are remedied. |
| O |
|
Off-Plan
When you buy a new home before it has been built
based on the plans and artist's impressions, you
are buying 'off-plan'.
Ombudsman
Independent professional bodies who investigate
complaints on behalf of customers against, for
example, estate agents, solicitors and insurance
companies.
Ombudsman
for Estate Agents
The OEA Scheme offers an independent service for
dealing with disputes between Member Agencies
and consumers who are actual or potential buyers
or sellers of residential property in the UK.
All member agents must adhere to the ombudsman
code of practice which lays down standards of
business conduct. Esjape Properties are Members
of the Ombudsman for Estate Agents Scheme. OEA
Website
|
| R |
|
Redemption
This is the moment when you pay off your mortgage
Redemption
Fee
A penalty which can be charged by your existing
mortgage lender if you pay off your mortgage early
or your move to a different mortgage.
Repayment
Mortgage
A mortgage repaid by way of monthly repayments
of capital combined with interest.
Retention
This is where the lender holds back part of a
mortgage loan until repairs or specified works
to the property are satisfactorily completed. |
| S |
|
Searches
The process of finding out if there are
any unwanted effects now or planned for the future
on a property
Self-Certification
Mortgage
These are mainly for people whose income is difficult
to assess using the standard method adopted by
most mortgage lenders. For example self-employed
people, unsalaried company directors or contract
workers. The interest rate is normally higher
than for a normal mortgage.
Sitting
Tenant
Someone who has a legal right of occupation to
a property even if the property is sold to someone
else.
Sole
Agency
When a single (sole) estate agent has been given
the right to sell or let a property
Stamp
Duty
Tax paid to the government on the purchase price
of property
Subject
to Contract
The period between the sale being agreed and exchange
of contracts
Survey
A report produced by a building surveyor for the
purpose of determining the value of the property
and if it is structurally sound |
| T |
|
Tenure
The type of ownership of a property such as Freehold
or Leasehold
Title
The legal right to ownership of a property
Title
Deeds
A Document that shows ownership of a property |
| U |
|
|
Unadopted
Road
A road which has not been accepted by a
Local Authority possibly as a result of it not
meeting the standards laid down (e.g. road surfaces,
drainage, etc.).
Under
Offer
A property is under offer when a homebuyer
has made a formal offer to purchase the property
but the homeowner has not confirmed whether to
accept. If the offer is rejected then the property
remains on the market until the next formal offer
is made at which point the homeowner must again
decide whether to accept the offer or reject it.
If the offer is accepted then it becomes 'Sold
Subject to Contract' (Sold STC). |
| V |
|
|
Vendor
The person who is selling a property |
| |
| This
glossary has been prepared in good faith and is
meant as a general guide and should not be seen
as legal advice |
| |
Glossary
