Jargon A-Z

A

  • Amenities
    • features that increase the value of a property.
  • Annexe
    • a building added on to an existing structure.
  • Annual percentage rate (APR)
    • the total cost of a loan, including interest charges and arrangement fees.

B

  • Broker
    • someone entrusted to negotiate the sale of property on behalf of another for a fee or commission.

C

  • Capped rates
    • are limited to a ceiling value. If interest rates rise above this figure you pay no more than the agreed ceiling value
  • Chain
    • a string of buyers and sellers who are all simultaneously involved in linked property transactions.
  • Commission
    • a fee given to a sales representative for services rendered.
  • Conditions of sale
    • legally binding clauses in the property sale contract.
  • Conveyance
    • the process of transferring a property from one person to another.

D

  • Deed
    • a document proving ownership.
  • Draft contract
    • a preliminary version of the contract

E

  • Encumbrance
    • a liability on the owner of a property that is then binding on subsequent owners.
  • Equity
    • the difference between the value of a property and the amount of mortgage owed.

F

  • Fixed rate
    • the interest rate is permanently set for a period of time.
  • Freehold
    • a property held outright.

G

  • Gazumping
    • when a seller accepts a higher offer from a third party after agreeing to sell to someone else.
  • Gazundering
    • when a buyer reduces his offer prior to the contract exchange.

H

  • Home information pack (HIP)
    • a legal requirement for any property being put on to the market.

I

  • IFA
    • Independent Financial Advisor.

J

  • Judgement lien
    • claim upon the property of a debtor resulting from a judgment.

L

  • Lease
    • a contract granting use of a property for a specific time and amount.
  • Leasehold
    • property held by lease.

M

  • Mortgage
    • when a property is used as security for the repayment of a debt
  • Mortgagor
    • the mortgage recipient.

N

  • Negative equity
    • when the value of the property drops below the outstanding mortgage amount.

O

  • Ombudsman
    • an independent body that investigates complaints (e.g. against estate agents).
  • Open market value
    • the price of a property should there be a willing buyer and willing seller.

P

  • Parapet
    • low wall usually over a sudden drop.
  • Public liability insurance
    • a policy that covers death or injury to anyone on the property.

Q

  • Quote
    • a service provider’s estimated cost of providing the service.

R

  • Recission
    • cancellation of a contract.
  • Retention
    • holding back part of the mortgage until specified works are completed.

S

  • Smallholding
    • piece of land under 50 acres sold or let for cultivation
  • Stamp duty
    • a tax paid by property buyers.
  • Standard variable rate
    • monthly mortgage payment rate that rises alongside interest rates.

T

  • Tenure
    • the period during which the property is held
  • Title deed
    • legal document proving ownership of a property.

U

  • Under offer
    • when a seller has accepted an offer but paperwork has not been finalised.

V

  • Valuation
    • the estimated price of a property.
  • Vendor
    • a person who sells property.

W

  • Writ
    • a formal court order commanding someone to do or cease doing something.

Y

  • Yield
    • income from a property calculated as a percentage of its value.