Property Glossary

Property Details Glossary/ Property Jargon Buster

Use our jargon buster of useful terms related to buying a property to help you better understand common words and phrases you are likely to hear throughout the process. Ideal for first-time buyers and anyone looking to purchase a property.

Affordable Housing

Housing built by Housing Associations or Registered Providers, with subsidies from the Government.

Agreement in Principle

Provided by lenders as a statement that this is what they are prepared to lend the named borrowers subject to the approval of the property. This will show any prospective seller that you are prepared and can afford the property.

Bridging loan

A short-term loan commonly used to cover or ‘bridge’ the overlap between the purchase of a new property and the sale of an old one, or where a property needs work in order to get it into a condition to be able to get a mortgage

Building Survey

The most detailed survey showing the structural condition of the property.

Buy-to-Let

When a property is purchased specifically to let/ rent out to someone else.

Chain

A property chain is created when there are multiple transactions that all need to occur at the same time for each sale and purchase to conclude. If you already own a property, it is likely that you will need to sell your current property in order to be able to purchase your new property, so all the transactions need to occur at the same time. If however, you are a first-time buyer you won’t need to sell in order to move, which arguably will make you an easier buyer to work with from a seller’s point of view.

The longer the chain the greater the chance of one element of the chain not doing what they promise and as a result, this will break the chain and potential stop all of the buyers and sellers in the chain concluding their sales and purchases.

Commonhold

Commonhold is a type of freehold ownership for a property that’s part of an estate. So, a flat within a block can be owned as freehold.

You’ll be required to join the commonhold association as an owner of a property in the commonhold. And you’ll need to contribute towards the cost of maintaining the estate.

Common parts/areas

The parts of a freehold building that are shared by the leaseholders eg the hallways and staircases.

Completion

The finalising of the sale when all the monies are passed over and the buyer has the legal right to the take ownership of the property.

Completion statement

The document drawn up by your solicitor showing all the costs and monies due to complete the purchase of your property.

Conveyancing

The process undertaken by the buyer’s and seller’s solicitors of transferring the legal ownership of property or land from one person to another.

Council tax band

Council tax is a payment made to your local authority in order to pay for local services like schools, libraries, and refuse or recycling collections. The amount of council tax you pay depends on the value of the property you’re living in.

There are some situations where you don’t have to pay council tax. Students, for example, aren’t required to pay, and some rental properties will include council tax within the rent.

Council tax bands for new homes will be estimated if the council hasn’t confirmed them yet.

Deeds

Original documents confirming the details of ownership.

Disbursements

Fees paid by the buyer’s solicitor that the buyer will reimburse.

Equity/Negative equity

The value of the property less any money that you owe that is secured against it. Negative equity is where the property is worth less than the mortgage you have on it.

Equity Loan

An Equity Loan is an amount of money borrowed based on a percentage of the purchase value of your property. The amount to be repaid is based on the same percentage of the final value of your home when you pay it back.

Exchange of Contracts

When copies of signed contracts are exchanged between the buyer’s and seller’s solicitors and the point at which both parties are legally committed to the sale or purchase. The deposit is also paid over to the seller’s solicitor at the same time.

First charge

The mortgage company will have the first charge against your property which means that their debt is paid before any other debt secured on the property.

Fixtures and Fittings

The list of non-structural items in the property that the vendor will confirm if they are part of the sale.

Freeholder

Buying a freehold property means you own the property and the land it’s built on. You’ll usually be responsible for maintenance of the property and have more freedom to extend or change it.

Gazumping

Where the seller, having already accepted an offer, decides to accept a higher offer from another buyer. As both parties are only legally committed to the purchase after the exchange of contracts, the seller is legally entitled to do this. Asking the vendor to stop advertising and doing viewings at the property once your offer has been accepted will reduce the risk of this happening.

Gazundering

When a buyer reduces their offer just before the contracts are exchanged in the hope of forcing the seller to accept less for the property. This can legally happen until the exchange of contracts.

Ground Rent

Ground rent is a regular payment made by the leaseholder to the freeholder, or management company.

How much you pay and how often you pay it will be written into the conditions of your lease. If you don’t pay your ground rent, the freeholder could take you to court and ultimately repossess your property.

Ground rent varies from property to property. Some could be a few pounds a year, and others several hundred pounds or more.

Ground rent review period

Ground rent will have a review period written into the leasehold agreement. This means the amount of ground rent can increase each time it’s reviewed. Costs which appear affordable now may not be in the future.

Home Buy Agent

The person who processes your application under the Help to Buy Schemes.

Home Buyers Report

Mid-level property condition report suitable for conventional properties. It does not include a full structural survey.

Housing Association

A blanket term for Not for profit organisations that have the aim of making homes available and affordable for all, including the managing of shared ownership schemes.

Interest-only mortgage

The monthly payment only covers the interest due on the loan and so at the end of the mortgage term, the full amount of the mortgage advance will be payable to the lender. This type of mortgage is generally only used by investors or where you have another method in place in order to be able to repay the loan at the end.

Joint Tenants

A form of ownership used when two or more people own a property. If one of them dies, their share of the property automatically passes to the other owners, regardless of the what it says in the deceased’s Will (also see Tenants in common).

Key Worker

A public sector employee who is considered to provide an essential service, such as Healthcare, Education, Emergency Services and Local Authority.

Land Registry

A central government database which registers the details of ownership each time a property is sold.

Lease

The document between the leaseholder and the freeholder laying out the right and responsibilities of each party.

Leaseholder

Leasehold means you buy the right to live in a property for a fixed number of years. A freeholder will own the land the property is built on. And generally, you’ll have to pay ground rent and services charges.

The length of the leasehold is recorded on the lease agreement. If the lease runs out, the ownership goes back to the freeholder. Leases can be extended, but it can be expensive.

The lease will outline what maintenance you and the freeholder are each responsible for. It’s likely you’ll need the freeholder’s permission to alter your home.

Length of lease

The length of a lease means how long you’ve bought the right to live in the property for. The leasehold will be for a fixed number of years and will be recorded on the lease agreement.

When the lease runs out, the ownership goes back to the freeholder. Leases can be extended, but it can be expensive.

Lifetime ISA

ISA scheme allowing you to save up to buy a home where you can save up to £4,000 per year and the government will add 25% of the money you pay each year.

Local Authority Search

Checks made with the local council to see if there are any issues that may affect the property.

Listed Building

A property registered and protected as being of special interest or historic importance and for which you need to get permission from the local authority to make changes to.

Loan to Value (LTV)

The amount a mortgage lender is prepared to lend you against the value of your property. If the property was valued at £100,000 and the mortgage lender’s maximum LTV for a scheme was 75%, the maximum mortgage would be £75,000.

Mortgage

A loan secured against a property. A ‘first charge’ will be registered on the property so you can’t sell the property without paying off the mortgage first. If you don’t keep up the repayments the lender can repossess the property and evict you.

Mortgage Advance

The amount of money that the lender will lend you in order to purchase the property.

Mortgage Term

This is the amount of time over which the mortgage lender will lend you the mortgage advance, at the end of the term the mortgage advance.

NHBC scheme (National House-Building Council)

One of the main schemes that provide warranties for new build properties.

Peppercorn rent

A peppercorn rent is used to describe a very low or token rent paid by a tenant to a landlord. It allows the tenant a right over the land and is likely to be charged on an annual basis. The name comes from leases where historically the rent was a peppercorn or a pound of peppercorns per year.

Power of Attorney(PoA)

Someone that you appoint to act on your behalf for legal/financial affairs when you are not able to.

Registered Provider (RP)

The new term for Registered Social Landlord (RSL). This includes Housing Associations and Local Authorities.

Repayment mortgage

Your monthly payment pays the part of the interest and part of the money that you have borrowed. Over the length of the mortgage typically 25 years, you will have paid all of the interest due and paid back the money borrowed.

RICS

Royal Institute of Chartered Surveyors.

Security deposit

A deposit provides security for a landlord against damage, or unpaid rent by a tenant.

Service charges

Service charges are a regular payment for things like building insurance, caretakers, lighting, heating, cleaning and maintenance for shared areas of an estate.

Service charges are common for leasehold properties, but some newer freehold homes may also include a requirement to contribute towards maintenance of the estate’s communal facilities. These costs can increase and might be required to cover future maintenance that’s currently unknown. This is called a reserve or sinking fund. Always make sure that you understand the charges.

Shared ownership

Shared ownership is a form of leasehold where you buy a percentage of the property, and pay rent on the share you don’t own. You may be able to purchase the remaining share at additional cost. When you want to sell the property you might need permission.

Share of freehold

Sometimes the freehold ownership is shared between multiple properties in the same building, such as flats or maisonettes.

This means you’ll usually be responsible for maintenance of the property and have more freedom to alter or change it.

Sinking Fund/Reserve Fund

Money paid to the freeholder to cover specific, normally larger scale works to the property.

Staircasing

Also called ‘Tranching up’, it’s where you buy additional shares of your home under a shared ownership scheme.

Stamp Duty Land Tax (SDLT)

Stamp duty is a government tax payable on property or land above a certain price threshold in England or Northern Ireland. Use our stamp duty calculator to work out how much your stamp duty will be.

Similarly, if you’re buying a property or land in Scotland or Wales, there are other taxes that you might have to pay. Different rates apply for different property prices, so it’s worth looking into it well in advance.

Standard Variable Rate (SVR)

Is the main mortgage interest rate charged by a lender and normally the default rate when fixed-rate deals come to an end. It is based on the Bank of England Base rate.

Subject to contract (STC)

Offers are accepted subject to contract meaning that they are finalised once contracts are signed and exchanged.

Tenancy length

The tenancy length is how long the landlord offers to let the property for. It is the minimum length of the tenancy and many landlords are willing to offer longer term tenancies. This will be recorded on a contract, or tenancy agreement, between you and a landlord.

Tenants in common

A form of ownership used when two or more people own a property. If one of them dies, their share of the property forms part of their estate and does not automatically pass to the other owners in common. (see joint tenants also)

Under offer

Where the vendor has accepted an offer from a buyer and the exchange of contracts is awaited.

Valuation Survey

The check undertaken by the mortgage lender to assess the value and condition of the property.

Price

Knowing the purchase price means you can work out the total cost of buying the property. Not only mortgage payments and deposit, but also any stamp duty, legal and moving costs.

Type of Tenure:

Knowing the tenure of a property means you know how you’d legally own it and if there are any other costs or obligations linked with it.

Freehold

Freehold means you own the property and the land it’s built on. You’ll usually be responsible for maintenance of the property and have more freedom to extend or change it.

Share of Freehold

Sometimes the freehold ownership is shared between multiple properties in the same building, such as flats or maisonettes.

This means you’ll usually be responsible for maintenance of the property and have more freedom to alter or change it.

Leasehold

The length of the leasehold is recorded on the lease agreement. If the lease runs out, the ownership goes back to the freeholder. Leases can be extended, but it can be expensive.

The lease will outline what maintenance you and the freeholder are each responsible for. It’s likely you’ll need the freeholder’s permission to alter your home.

Commonhold

Commonhold is a type of freehold ownership for a property that’s part of an estate.

So, a flat within a block can be owned as freehold. And the common parts, like stairs and hallways, are owned and managed by a commonhold association, which is owned by the freeholders of the properties.

You’ll be required to join the commonhold association as an owner of a property in the commonhold. And you’ll need to contribute towards the cost of maintaining the estate.

Non-traditional Tenure

This is where a property does not fit into the standard freehold, leasehold, commonhold structure. This is very uncommon but most often occurs with park homes and houseboats where you will own the park home / houseboat but will need to rent the land / water on which is sits / berths from the owner of the park home site or mooring. There will then be associated costs for renting the land or mooring your boat and there may be service charges and other costs on top. You should speak with your agent to understand the full costs associated with owning a property that is not of a standard tenure.

Shared Ownership

Length of Lease

The length of a lease means how long you’ve bought the right to live in the property for. The leasehold will be for a fixed number of years and will be recorded on the lease agreement.

When the lease runs out, the ownership goes back to the freeholder. Leases can be extended, but it can be expensive.

Ground Rent

Ground rent is a regular payment made by the leaseholder to the freeholder, or management company.

Ground rent varies from property to property. Some could be a few pounds a year, and others several hundred pounds or more.

Ground Rent Review Period

Peppercorn Rent

Annual Service Charge

Service charges are a regular payment for things like building insurance, caretakers, lighting, heating, cleaning and maintenance for shared areas of an estate.

Sales Listings (auctions):

Guide Price

An indication of a seller’s minimum expectation at auction and given as a “Guide Price” or a range of “Guide Prices”. This is not necessarily the figure a property will sell for and is subject to change prior to the auction.

Reserve Price

Each auction property will be subject to a “Reserve Price” below which the property cannot be sold at auction. Normally the “Reserve Price” will be set within the range of “Guide Prices” or no more than 10% above a single “Guide Price”.

Lettings Listings:

Rent

Knowing the rental price means you know how much, and how often, you need to pay rent. This can help you plan your budget, and reduce the chance of missing a payment.

Security Deposit

A deposit provides security for a landlord against damage, or unpaid rent by a tenant.

Tenancy Length

Sales and Lettings listings:

Council Tax Band

There are some situations where you don’t have to pay council tax. Students, for example, aren’t required to pay, and some rental properties will include council tax within the rent.

Council tax bands for new homes will be estimated if the council hasn’t confirmed them yet.

EPC Rating

An Energy Performance Certificate (EPC) provides you with information about a home’s energy efficiency rating. The rating ranges from A (most efficient) to G (least efficient). An EPC must be ordered before a property is put up for sale or rent, and is valid for 10 years.

Listed Property:

A listed property is designated as being of architectural or historical interest, and will require special permission before it can be extended or altered. Specific maintenance and upkeep obligations may apply, and some properties may be required to be open to the public.

Owners of listed properties should speak to the Conservation Officer at the local Council or English Heritage about any restrictions which may apply.

There are 3 categories of listed property:

Grade I listed

This includes buildings of exceptional interest, such as The Tower of London and Windsor Castle.

Grade II listed

This is the most common classification for a private home, but also includes public buildings of special interest such as the Crucible Theatre in Sheffield.

Grade II* listed

This is given to particularly important buildings of more than special interest, including Battersea Power Station and Liverpool Metropolitan Cathedral.

Rights and restrictions:

Rights of Way

Rights of Way refers to various types of access that are allowed on a property. The examples of public and private rights of way below apply to the land on which the property sits, as well as the property itself.

Public Rights of Way

A legal obligation to allow public access to private property, such as a footpath or bridleway.

In many cases the property owner is responsible for upkeep, and will need to work with the council and other authorities to maintain the Right of Way.

Private Rights of Way

The right for other private citizens to cross your land, or erect structures on, above or under your land without requiring your permission. This right extends to companies, so an example could be a pub where its staff, deliveries and customers need to cross your land to access the pub.

Rights of Way – easements

An easement is the right to use or cross your land without permission. An example of this is a neighbouring property having a right of way across your driveway so they can access their home.

Rights of Way – servitudes

The right for another party to alter your land, such as erect an overhead power line. Most servitudes remain unnoticed and already exist when a house is bought.

Rights of Way – wayleaves

The right to use a small portion of your property in exchange for you being paid rent. Examples include companies erecting mobile phone masts, or power lines and telegraph poles which supply nearby properties.

Restrictions and Restrictive Covenants

Legal, community or personal restrictions around what you can and cannot do with the land you own. These can be set out in law or in a contract.

Common examples of restrictions are:

Listed buildings
What you can do in a conservation area
All front doors must be black
Trees must be cut to a certain height
No barbecues on the balcony
Use of communal gardens in freehold properties
Use of communal corridors in leasehold flats

Utilities

Utility supplies are basic services needed to keep a property comfortable and functional, such as electricity and water supply.

Public supplies are maintained by utility companies, whereas a private supply such as an air source heat pump may incur additional costs and legal requirements.

Parking

Parking can refer to how and where vehicles can be parked, and any associated costs. Factors to consider include whether a parking space is owned by you, if parking is communal, or if a permit is needed.

Accessibility

Properties that have been designed or adapted to make them suitable for people with accessibility needs.

Common accessible features include:

Level access
Lift access
Ramped access
Wet room
Wide doorways
Step-free access
Level access shower
Lateral living (a property where there is a kitchen, living room, bathroom and at least one bedroom on the entry level)

Flooding

It is important to understand if a property is at risk of flooding, or if it has any flooding history. If so, a potential buyer should check if there are flood defences at the property.

Note: There are other factors to consider when purchasing a property – you should ask your agent if you think they are relevant but not included in the property description. These could include the construction type of the property, planning permission, building safety, coastal erosion and the impact of mining in the area.

Download document

Log in

Compare