Glossary Of Property Terms

Glossary of Terms Used in Property and Real Estate Industry in the UK.

Whether you are a seasoned investor in Real Estate and Properties or thinking of buying your first property, it would be easier for you to deal with different types of intermediaries like Estate Agents, Solicitors, Valuers, Mortgage Brokers etc. if you know words, phrases and abbreviations used by real estate industry professionals:

Glossary of Terms Used in the Real Estate Industry (UK)

A

• Acceptance: Agreement by the seller to sell to a specific buyer under certain terms.
• Annual Percentage Rate (APR): The yearly rate charged for borrowing or earned through an investment.
• Appraisal: An assessment of a property’s value, typically conducted by an estate agent.
• Assured Shorthold Tenancy (AST): The most common type of tenancy agreement in the UK, providing tenants with a period of ‘security of tenure’.

B

• Base Rate: The Bank of England’s officially recognized interest rate.
• Break Clause: A provision in a contract allowing either party to end the agreement early.
• Bridging Loan: Short-term financing used until permanent financing is secured.
• Building Inspection/Structural Survey: An in-depth inspection of a property to identify potential structural issues.
• Buy to Let: A Property which is essentially purchased with the intention of Letting it. Buy to let is an investment decision to purchase a property with a view to obtaining rental income as part of the return on the investment.

C

• Capital: Wealth in the form of money or property.
• Chain: A sequence of linked house purchases, each dependent on the preceding and succeeding purchase.
• Commonhold: Commonhold Property is the newest way of owning property and is very rare. Commonhold Property is a type of tenure that was introduced very recently and is the one which applies to flats or apartment blocks.
  
• Completion: The point at which property ownership transfers to the buyer.
• Conveyancer: A legal professional specializing in property transactions.
• Conveyancing: The legal process of transferring property ownership.
• Covenants: Rules governing the use of a property, outlined in the title deeds or lease.

D

• Deeds: Legal documents proving ownership of a property.
• Deposit: Money paid upfront as security and to confirm a transaction.
• Dilapidations: Damage to a rented property that goes beyond reasonable wear and tear.
• Disbursements: Additional costs in the conveyancing process, such as Land Registry fees.

E

• Easement: The right to use another person’s land for a specific purpose.
• Energy Assessor: Energy Assessor is a qualified and regulated person who can assess the Energy Performance of any property to be sold or let in the UK.
• Energy Performance Certificate (EPC): A certificate rating a property’s energy efficiency.
• Equity: The value of an owner’s interest in a property, calculated as the property’s market value minus any outstanding mortgage.

F

• Freehold: Ownership of a property and the land it stands on, with no time limit on ownership.
• Fixtures and Fittings: Items attached to the property (fixtures) and items that can be removed (fittings).

G

• Gazumping: When a seller accepts a higher offer from another buyer after already agreeing to a sale.
• Ground Rent: Rent paid by the leaseholder to the freeholder for the land on which the property stands.

H

• Homebuyer Report: A survey that provides an overview of the property’s condition and highlights any significant issues.

I

• Inventory: A detailed list of the contents and condition of a property at the start of a tenancy.

L

• Leasehold: Ownership of a property for a fixed term, but not the land on which it stands.
• LTV (Loan-to-Value): The ratio of a loan to the value of the property purchased.

M

• Mortgage: A loan used to purchase a property, secured against the property itself.

O

• Offer: A formal proposal to buy a property at a specified price.

P

• Property Chain: A series of linked property transactions, each dependent on the other.
• Property Valuation: An assessment of a property’s market value, typically conducted by a surveyor.

R

• Repossession: The process by which a lender takes possession of a property due to the borrower’s failure to meet mortgage repayments.

S

• Stamp Duty Land Tax (SDLT): A tax paid on property purchases over a certain value.
• Survey: An inspection of a property’s condition, usually conducted by a qualified surveyor.

T

• Tenancy Agreement: A contract between a landlord and tenant outlining the terms of the rental arrangement.
• Title Deeds: Legal documents that prove property ownership.

V

• Valuation Survey: A basic survey to determine the value of a property, often required by mortgage lenders.

These details and explanations are provided to help the landlords and property owners in understanding real estate business however we do not claim this to be legal advice in any way. In case of any doubts, you should talk to your Solicitors or Legal Advisers for better understanding and clarifications.