| A | |
| Acquisition Cost | Cost of the purchaser acquiring a property, including stamp duty and any additional expenses, i.e. due diligence cost. |
| AST | Assured Shorthold Tenancy Agreement. The landlord of the property must provide basic written terms of the agreement within 28 days of the purchaser requesting this in writing. |
| Auction | The sale of a property to the highest bidder. |
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| B | |
| BMV | Below Market Value. A property that is sold for less than what a recognised professional has valued it to. |
| Bridging Loan | A temporary loan providing financial cover that allows the purchaser to complete on the purchase of a property before selling an existing property. |
| Building Survey | A complete inspection of the property to be purchased by a Chartered Surveyor. The purchaser who will receive a full and detailed report in writing usually pays for this inspection. |
| Buy to Let | The purchase of a property for investment, providing income by rents received from a tenant and capital growth where the property increases in market value. |
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| C | |
| Chain | A number of property sales linked together by onward purchases that are reliant on the funds from sale in order to purchase. |
| Completion | The remaining balance for the property is paid, legally completing the property to the possession of the purchaser. |
| Conditions of Sale | Details the rights and agreed terms between the seller and the purchaser. |
| Contract Race | When two or more potential purchasers have made offers on a property that are acceptable to the owner. The owner will then exchange contracts with the purchaser that is first to be in a legal and financial position to do so. |
| Conveyancer | A qualified person, i.e. a solicitor who deals with the sale/purchase of a property. |
| Conveyancing | The legal term for the selling/purchase of a property. |
| Covenants | Obligations and restrictions relating to a property. |
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| D | |
| Demographic Profile | A market segment involving social class bands, age bands and gender bands. |
| Deposit | A percentage of the purchase price of a property paid by the purchaser to the seller at point of exchange. The seller's solicitor holds this until completion. |
| Developer | A person or company that build commercial and residential property. |
| Dilapidations | Any damage or disrepair to a rented property. |
| Disbursements | Fees paid by the solicitor on behalf of the purchaser or seller for stamp duty, search fees, Land Registry Fees, etc. |
| Discharge | Paying off a mortgage. |
| Draft Contract | A preliminary version of the contract used to exchange. This is usually drawn up by the seller's solicitor and sent to the purchaser's solicitor for approval. |
| Due Diligence | A series of assessments to qualify and quantify that rents, values, pricing and discounts are stated accurately. |
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| E | |
| Equity | The different between the sums achieved on the sale of the property and the outstanding balance on the mortgage. |
| Exchange | This is the point in which the sale and purchase of a property is legally binding. Both parties' solicitors swap contracts containing the agreed price, fixtures and fittings and completion date. The purchaser is now responsible for the building insurance of the property and if either party pull out of the sale, compensation must be paid. |
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| F | |
| Fixtures and Fittings | Any item within a property that is not structural, i.e. curtain poles, light fittings. |
| Freehold | Full ownership of a property and the land in which it is build on with no time limitations. |
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| G | |
| Gazumping | This is when a seller accepts an offer from another purchaser despite having already agreed the sale to someone else prior to exchange. |
| Gazundering | This is when the purchaser attempts to re-offer a lower figure than agreed in the contract on the day of exchange. |
| Gifted Deposit | This is when a developer contributes part of the deposit on a property. |
| Gross Price | The market value/price before any discount. |
| Ground Rent | An annual charge paid by the leaseholder to the freeholder. |
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| H | |
| HMO | A House of Multiple Occupancy. Renting a property to more than one person under separate contracts. This usually applies to low income tenants, i.e. students or DHSS tenants. |
| Home Buyers Report | Details an inspection of a property (though not as detailed as a full structural) carried out by a Chartered Surveyor and a valuation along with supporting comparable evidence. |
| Hotspot | An area/region that has been shown as experiencing rising property prices. |
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| I | |
| IFA | Independent Financial Advisor. A professional qualified to give financial advice to investors on life insurance, pensions, funds, and other financial products, and who is not tied to any sole financial institution. An IFA may charge clients a fee for their advice or may receive a commission on the products that the client buys. An IFA's recommendations should be solely based on which company and products best suit the needs of the client. |
| Inventory | A list of the content of a leasehold property and the condition of its content and decorative state. This list is checked at the start and end of a tenancy. |
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| L | |
| Land Registry Fee | The fee paid to the Land Registry to register the ownership of a property. |
| Lease | A legal document that enables the freeholder or landlord to let the property to another party for a specific length of time after which point the ownership reverts back to the freeholder. This normally only applies to apartments and commercial property. |
| Leasehold | The property's tenure is that of a lease. |
| Listed Building | A property listed as having historical or architectural importance. Such a property cannot be altered in its exterior, and in some cases its interior, and cannot be demolished, without the consent of a Listed Buildings Officer and possibly English Heritage. |
| Local Authority Search | The purchaser's solicitor undertakes an investigation into the local authority and other agencies in order to identify any plans for development that may affect the property and its direct surroundings. |
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| M | |
| Mortgage | A loan of a sum of money from a lender, usually a bank or building society, to aid in the purchase of a property. This money is usually borrowed over a number of years and is secured against the property. |
| Mortgage Broker | A third party who facilitates a mortgage between a borrower and a lender. Independent mortgage brokers often have access to the entire mortgage market and are able to recommend the product to best suit the client they are working on behalf of. A mortgage broker will typically charge the client a small fee for their services and also receive a proc (commission) fee from the lender upon completion. |
| Mortgage (Capital & Interest | A mortgage or loan that requires the borrower to repay the amount originally borrowed plus any interest accrued over the life of the loan. If taking out a capital and interest mortgage, the borrower will fully own the property mortgaged once the loan term has expired and both the interest and capital loan aspects of the loan have been repaid. |
| Mortgage Deed | A legal document recording the mortgage lender's financial assistance in purchase of the property and the terms by which the loan has been agreed. |
| Mortgage (Interest Only) | A mortgage or loan that requires the borrower to repay only the interest charged on the amount of capital outlaid by the lender per term agreed. With an interest only mortgage, the amount of capital owed to the lender is never reduced, but the amount of interest paid per term may vary or be linked to the interest rate. |
| Mortgage Lender | |
| Mortgage Offer | A document assembled by the mortgage lender formally offering the loan for the purchase of a property and the terms by which the loan has been agreed. |
| Mortgage Term | The length of time by which the mortgage repayments are made. |
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| N | |
| Negative Equity | When the amount of mortgage owed is higher than the market value of the property. |
| Net Price | The discounted price that a purchaser pays for the property. |
| NHBC Guarantee | National House Building Council Guarantee. A certified document that places responsibility upon the builder rather than the owner for any defects of a newly built property. This guarantee is usually for a period of 10 years. |
| No Money Down Deal | The term used to describe a deal where the purchaser is able to buy without the need for a deposit. This typically involves negotiating a discount from market value and the use of a creative financing technique such as the ‘bridge and remortgage'. Other forms of No Money Down deals can involve a gifted deposit or cash back upon completion from the vendor to effectively cover the deposit required. |
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| O | |
| Offer | A proposal from the purchaser to the seller of a sum of money for the purchase of a property. |
| Off Plan | A property, or development that is beyond the planning stage, but before any construction has begun. This also involves an agreement and a subsequent exchange of contracts. |
| Ombudsman | A independent professional body set up to investigate any complaints made against any professionals relating to property, i.e. estate agents, solicitors. Any individual may call upon the assistance of the Ombudsman, but only those who have chosen to become members may be investigated. |
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| P | |
| Property Information Form | A form completed by the seller providing answers to any questions raised by the purchaser. |
| Premium Lease | A sum of money paid up front for the rent of a property rather than smaller periodical payments. |
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| R | |
| REIT | Real Estate Investment Trust. A company, usually traded publicly, that manages a portfolio of real estate to earn profits for shareholders. |
| Repossession | When a court order is obtained by a mortgage company to take full possession of a property due to a lack of mortgage repayments. |
| Rental Void | A period where a property is untenanted. |
| Rental Yield | This is the rent that a landlord will receive, expressed as a percentage, against the purchase price of the property. For example, if the rent received it £10,000 and the purchase price of the property is £100,000, then the rental yield is 10%. |
| Retention | When remedial works or repairs are necessary on a property, the mortgage lender with hold back a sum of money until such work has been done. |
| RICS | Royal Institute of Chartered Surveyors - the official body that licenses surveyors. |
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| S | |
| Search | During the purchasing process, the purchaser's solicitor with carry out a number of searches relating to the property and it's immediate surroundings, i.e. Land Registry Search, Local Authority Search, Water Search. |
| Service (Maintenance) Charge | Payment issued by the management company for the repair and upkeep of communal area or buildings both internally and externally. These charges are made to the owners or leaseholders of the properties contained within. |
| Share of Freehold | The tenure of a commercial property or flat. Typically, the division of one large commercial unit or block of apartments results in the creation of leases and leasehold property, with one freeholder who retains absolute right over the property and land. Occasionally, the freehold is divided amongst owners of the individual units within a block of property to result in the granting of a ‘share of freehold' for all individual buyers. |
| SIPP | Self-Invested Personal Pension. A type of personal pension giving the policyholder more choice about the investments held than traditional pension policies. With the help of advanced IFA's and easing investment ruling, many investors now chose to hold property within a SIPP, as there are several tax advantages to doing so. |
| Site | A new development either constructed or under construction. |
| Stamp Duty | Tax paid to the Government by the purchaser at a percentage of the property's sale price. This ranges from 1% to 4% for properties above £125,000. |
| Stock Units | Properties that are built finished and ready to move into. |
| Subject to Contract | An agreement that is not yet legally binding. |
| Surveyor (Chartered) | A professional who is qualified to carry out property inspections. |
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| T | |
| Tenancy | The temporary possession of a property by a tenant. |
| Tenancy Agreement | A legal agreement outlining the terms under which the rental of the property has been agreed between the landlord and the tenant. |
| Tenant | A person who has temporary possession and use of a property that is owned by another person, the landlord. |
| Tenure | The manner in which the property is owned, i.e. Freehold, Leasehold or Share of Freehold. |
| Title Deeds | A document that displays the ownership of the property, and the rights and obligations affecting the property. The mortgage lender holds this document until the mortgage has been met. |
| Transfer Deed | This document transfers the ownership of the property from the seller to the purchaser. |
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| U | |
| Under Offer | This term is used when the seller has accepted an offer made on a property by the purchaser before it has exchanged. |
| Unit | A single property - either an apartment or a house. |
| Unit that will ‘wash its face' | Where the monthly rental on a property is higher than the monthly mortgage costs. |
| Unit with a rental shortfall | Where the monthly rental on a property is less than the monthly mortgage costs. |
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| V | |
| Valuation | The market value of a property as measured by a recognised professional on behalf of a purchaser or lender. |
| Vendor | The owner of a property that is on the market or being sold. |
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| Y | |
| Yield | Income generated from a property calculated as a percentage of its value. |
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With the aid of Bueno we have secured 14 properties in the past 9 months!
