Property and Estate Agents Jargon

By: Sam Harrington-Lowe - Updated: 22 Jun 2010 | *Discuss

 

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It might all seem a bit confusing when you first start to look for your ideal home. It's all very well knowing how many bedrooms you need or where your property should be, but you will need to speak the lingo too! Here is an A-Z guide for deciphering property jargon

A

A mortgage loan

The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation is worked out over the full term of the mortgage. APR is an industry standard and means you can compare mortgages easily.

This is a fee that might be involved when you apply for a mortgage.

B

The Bank of England sets a rate each month called the 'Base Rate'. Banks and building societies use this to set their interest rates.

A temporary loan to help a buyer purchase a new property before they have sold their last one.

Insurance against the complete cost of rebuilding a property in the event of structural damage, by fire, flood or storm.

C

Another term for Repayment Mortgage

When you complete the mortgage you receive a lump sum in cash.

A mortgage or some other debt secured against the property.

The date that ownership is transferred.

The details of the agreement between seller and buyer in a legal document.

A licensed person who may conduct conveyancing, who is not a solicitor.

The paperwork and legalities of transferring the property from seller to buyer.

Something within the Title Deeds or lease, that the buyer has to comply with, normally applied to all future owners of the property. A restrictive covenant stops the owner from doing something.

D

Legal documents showing who owns a property.

Usually around 5-10% of the total property cost this is the proportion the buyer puts up together with the rest of the mortgage loan.

E

If you pay off the mortgage early, there may be a charge for it.

The balance between the value of a property and the amount of the mortgage. This can be in credit or can be Negative Equity, where you owe more than the difference.

This is where the vendor and buyer sign their copies of the Contract. The exchange is performed by their respective legal representatives and it is legally binding.

F

A mortgage where the interest rate payment is fixed for a certain time.

Anything in the house non-structural, open to interpretation and negotiation between buyer and seller.

Legal title that gives you total ownership of the land your property is on, rather than leasehold.

This covers all the main features of the property, including foundations, walls, roofing, plumbing, electrics etc

G

When you lose your property to another buyer who has bid more

This is where the buyer suddenly offers less than the agreed price just before exchanging contracts.

If you are not the freeholder you will pay a fee called Ground Rent to the party that is.

Your guarantor backs up your mortgage, agreeing to pay it if you can't.

H

Usually applied to mortgages where the borrower is arranging a mortgage for 90% or over.

A less detailed survey than the Full Structural, and arranged by the mortgage lender.

A document pack covering all important information relating to a property, including boundaries, planning permissions, energy efficiency etc.

I

Independent Financial Advisor.

This is where you only repay the interest on your mortgage debt each month. Usually supported by another repayment investment such as a pension or endowment,

L

A Land Registry certificate showing who owns a property.

A government department which holds all records of registered properties in England and Wales.

You pay this to the Land Registry to register if you have bought a property.

You own the property but not the ground it is on. The ground belongs to the Freeholder.

A search of the local geographical area to highlight anything planned such as road building, new developments etc

The amount of mortgage shown as a percentage of the property value. So if your mortgage amount was £160,000 and your property is valued at £200,000 your LTV is 80%.

M

What the interest is on your mortgage each month

A legal document outlining the mortgage lender's hold on the property.

Insurance in case you can't make your mortgage repayments

The length of a mortgage term - normally 25 years.

N

When your outstanding mortgage is more than the value of the property.

P

You need planning permission to make any structural changes to a property. The Planning Department at the local council grants this.

A property sold without using an estate agent.

R

A new mortgage with a different lender, often of a high value to release equity in the property.

Also known as a Capital and Interest mortgage. Your monthly payments cover both interest, and part of the capital sum.

S

Where a vendor only works with one estate agent to sell the property.

This is a tax you must pay on a property when you buy it, paid on completion.

This is used to show that agreements are not yet legally binding and have yet to be agreed for the contract.

A report on the property you are buying.

Person who carries out a survey.

T

This shows who actually owns the property.

The total cost of repaying a mortgage.

Tracker mortgages follow the base rate set by the Bank of England rather than agreeing a fixed rate of interest.

Land Registry document that transfers legal ownership from vendor to purchaser.

Adding or removing some to or from a mortgage.

U

When the vendor provisionally accepts a buyer's offer.

V

This identifies whether the value of the property is worth the amount of mortgage requested.

The charge for the Valuation!

The person selling the property land.

W

Any correspondence marked 'Without Prejudice' means it cannot be used in a court of law

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