a mortgage repayment option whereby the amount borrowed (capital) and the interest accrued are paid back on a monthly basis to the lender.
Capital Gains Tax
the taxable profit derived from the sale of a capital asset - the capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing up expenses, capital improvements, allowable depreciation, etc.
capped rate
whereby your mortgage interest rate is guaranteed not to rise above an agreed fixed rate for a defined period of period of time.
chalet
a small wooden house found in mountainous areas, especially in Switzerland, or a house built in a similar style, especially as used by people on holiday.
church
a building that has been used for religious worship.
completion
the point at which all transactions concerning the property’s sale are concluded and legal transfer of ownership passes to the buyer.
condominium
an apartment building in which each apartment is owned separately by the people living in it, but also containing shared areas.
conservatory
a glass room, usually connected to a house, which is often used as a dining area, playroom, or sitting room.
contents insurance
insurance to cover the damage or loss of items and belongings within a property.
a legal document that details the agreement between buyer and seller that binds both parties to complete the transaction.
conveyancing
a term to describe the legal work involved in a property transaction that is conducted by a property solicitor.
cottage
a small house, usually in the countryside.
covenants
agreements written into title deeds which detail an rules or restrictions concerning a particular property.
credit search
a search most commonly invoked by a lender through a specialised company to ascertain if an individual has CCJs or a bad payment history.
credit scoring
a numerical value that ranks an individual's credit risk at a given point in time based on a statistical evaluation of information from a credit search.
a raised floor outside of a property, usually in the garden, that is often made of wood.
deeds
a document detailing the ownership of a property, usually held by a mortgage company.
deposit (for buying a property)
a sum of money (most commonly 10%) paid by the buyer of a property to a mortgage lender upon exchange of contracts.
deposit (for renting a property)
a sum of money (usually a month's rent in advance) paid to the landlord (or agent) of the property, which is returned at the end of the tenancy, subject to the condition of the property.
derelict
describes buildings or places that are neglected or unoccupied and in poor condition.
detached
a term used to describe a property which stands alone and is separated from other properties.
dilapidations
any disrepair or damage to a rented property.
disbursements
fees paid by a solicitor on the buyer’s behalf such as Land Registry fees, stamp duty and search fees.
development
a term used to describe the building of new properties, or the renovation of older properties.
a means of retaining the use of your house or other object which has capital value, while also obtaining a steady stream of income, using the value of the house.
estate agent
a business that arranges the selling, renting (letting agents) or management of homes, land and other buildings (property management agents).
the amount you have agreed to pay an insurance company towards the cost of a claim.
exchange of contracts
when contracts are exchanged between the buyer's and seller's solicitors, legally committing both parties to the sale/purchase of the property at the agreed price.
the main house on a farm where the farmer lives or lived.
farm
an area of land, together with house and buildings, used for growing crops and/or keeping animals as a business.
fixed rate mortgage
where the interest rate on a mortgage is fixed for a set period of time, meaning monthly repayments are unaffected by upward or downward movements in the standard variable rate.
flat
a set of rooms for living in which are part of a larger building.
flexible mortgage
a mortgage product that offers the borrower the flexibility to overpay or underpay on their mortgage in a given month.
floorplan
an architect's drawing of the layout of a property showing the dimensions and spatial relationships between rooms, entrances, etc.
freehold
the ownership of a property, meaning that it belongs to the owner without the limitation of time.
a building where a car is kept, which is built next to, or as part of, a house.
gazumping
when a seller accepts a higher offer from a third party on a property that they have already agreed to sell to another party, but have not yet exchanged contracts.
gazundering
when a buyer offers the seller a lower offer than the previously agreed selling price just before contracts are about to be exchanged.
Georgian
belonging to the period when Kings Georges I, II and III ruled Britain, especially from 1714 to 1811.
ground rent
an annual charge levied by the freeholder to the leaseholder.
guarantor
a individual who offers to be contractually liable, both financially and legally, should a tenant fail to pay the rent during their tenancy, or in the event of damage to the property.
guide price
an indication of the price that the property is expected to sell for and what the vendor is hoping to achieve.
a series of documents (including an Energy Performance Certificate) recently introduced by the UK government to speed up the home buying and selling process and also to save consumers money on house sales and purchases which, for one reason or another may not complete.
a tax paid to the government based on wealth (money, property, etc.) passed from one person to another during their lifetime or as part of their estate after death.
insurance
an agreement in which you pay a company money and they pay your costs if you have an accident, injury, etc., or if your property or possessions are damaged or lost.
money which is charged by a bank or other financial organisation for borrowing money.
interest-only mortgage
a mortgage repayment option, whereby the borrower only repays the lender the interest on the amount borrowed - the borrower must still pay back the capital, or amount borrowed (usually through an investment vehicle).
inventory
a list detailing every item contained within a rental property and the condition each listed item is in, usually checked by all parties on the day the tenant moves in and signed by all parties.
a government body which maintains and updates records of land ownership and property ownership.
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, after the expiry of which, ownership may revert to the freeholder or superior leaseholder.
leasehold
a legally binding document whereby the freeholder grants the right for the leaseholder to possess, or the use of land or a building for a specific period of time.
lender
usually a business, such as a bank or building society from whom one borrows money, or to whom one owes money.
letting
when a property owner leases or rents out a property to tenants.
a form of equity release, whereby one can borrow an amount of money against part of, or all, the value of your home, and interest is charged on the amount you borrow.
listed building
a building of great historical or artistic value, which has official protection to prevent it from being changed or destroyed.
loan to value
the size of a mortgage relative to the property's value.
local authority search
when a solicitor makes an enquiry to the land registry to ascertain if there are any future development issues or outstanding enforcements that might affect a property or surrounding area, which might influence the decision to purchase the property.
loft
a space at the top of a building, under the roof, used for storage, or sometimes converted into a room.
independent professional bodies that deal with complaints by consumers made about particular organisations, such as estate agents. (Ombudsman of Estate Agents)
open day
when a property is opened up to prospective buyers to view over a set period of time to increase the competitiveness of a property sale.
an area outside a house with a solid floor but no roof which is used especially for eating, or in good weather.
penthouse
a luxurious apartment, or set of rooms, at the top of a hotel or tall block.
planning permission
formal approval provided by a local planning authority, or council, often with conditions, allowing a planned development to proceed.
plot
a piece of land that has been marked, or measured, for an individual house or flat to be built, or an individual property unit within a wider new property development.
the cost of fully rebuilding a property, usually requested as part of a buildings insurance policy.
recycling
when paper, glass, plastic, etc. is processed so that it can be used again.
redemption
when a mortgage is paid off in full.
renovation
the process of repairing and/or improving a property.
repayment mortgae
a mortgage where monthly repayments include both the capital and interest components, meaning at the end of the term, the mortgage will be paid off in full.
repossession
when a mortgage company takes possession of a property, primarily due to non-payment of a mortgage.
rent
a fixed amount of money that you pay regularly to the owner of a property for the uninterrupted use and enjoyment of it for an agreed period of time.
retention
the process of withholding money from a seller until certain improvements or corrections to the property have been completed to satisfaction.
where interested parties send a letter detailing the amount they are willing to pay for a property (to buy or rent) - the highest bidder usually secures the property.
searches
a request for any information concerning a particular property, usually held by a local authority or the Land Registry.
semi-detached
a property that is joined to another house on one side.
service charge
a charge to cover the cost of repairing and maintaining external or internal communal parts of a building, usually paid by the tenant or leaseholder.
serviced apartments
self-contained apartments designed to provide general amenities for short stays.
a tax property buyers pay to the government, the value of which depends on the value of the property being bought (ranging between 1% and 4% of the purchase price).
structural survey
a detailed assessment of a property's structure, designed to highlight faults or defects that might impact upon it's value of the property.
glossary definitions of property terms
