Glossary
We've included most of the common words or phrases you will come across when moving house ...
| Advance | Mortgage Loan |
| Auction | The sale of a property to the highest bidder. |
| APR | Annual Percentage Rate, the total cost of a loan, including all costs, interest charges and arrangement fees, shown as a percentage rate and easily comparable with mortgage interest rates. |
| Balance | The amount of loan owed at a particular time |
| Bridging Loan | A temporary loan advanced to help buy a new property before the existing one has been sold. |
| Buildings | Insurance against the cost of repair or rebuilding a property from scratch following structural damage, for example by flood, fire or storm. |
| Chain | A number of linked property sales where exchange of contracts must take place simultaneously. |
| Closing Date | The date set for submission of offers when more than one party show interest in the property. |
| Completion Date | Completion of the legal transaction with all monies and documents having been distributed. This is also when the seller's solicitor will instruct the estate agent to release the keys. |
| Conclusion | See under 'Subject to contracts exchanged' |
| Contents Insurance | Insurance against accidental damage or theft of all moveable contents, including furniture, appliances and soft furnishings. |
| Contract | A formal agreement between the buyer and the seller, usually prepared by a solicitor or licensed conveyancer, detailing the terms and conditions of the sale. |
| Conveyancer | Person other than a solicitor who may conduct the conveyancing. |
| Conveyancing | The legal work involved in buying and selling properties. |
| Council Tax | Levied by local councils to cover the cost of local amenities and services. |
| Covenant | A condition, contained within the Title Deeds or lease, that the buyer must comply with, which is usually applied to all future owners of the property. A restrictive covenant is one that prohibits the owner from doing something. |
| Deeds | Legal documents assigning ownership of a property and/or land. |
| Deposit | Sum of money that represents the personal capital that the buyer is putting toward the purchase of the property. |
| Disbursements | Fees, such as Stamp Duty, Land Registry and search fees on top of conveyancing which you normally pay via your solicitor. |
| Draft Contract | Unconfirmed version of the contract. |
| Early Repayment | A charge made by the lender if the borrower terminates a mortgage in advance of the terms of the particular mortgage. Normally occurs when the borrower has benefited from reduced payments or cash back in the early period of a mortgage. |
| Equity | The difference between the value of a property and the amount of mortgage owed. |
| Exchange of | The point at which the sale becomes legally binding from which neither party can withdraw without financial penalties - In Scotland see 'Missives Concluded'. |
| Fixtures | All non-structural items included in the purchase of a property. |
| FIMBRA | Financial Intermediaries Managers & Brokers Regulatory Authority. |
| Fixed Price | Offers are invited at the price shown |
| Freehold | Ownership of the property and land upon which the property is situated. |
| Full Structural | A full structural survey looks at all the main features of the property, including walls, roof, foundations, plumbing, joinery, electrical wiring, drains, and garden. |
| Gazumping | The practice by a seller accepting a higher price than that previously agreed with someone else. |
| Gazundering | The practice by a buyer lowering his offer just before exchange of contracts. |
| Ground Rent | The annual fee which a leaseholder pays to a freeholder. |
| Home Reports | The majority of properties which are put onto the market in Scotland from 1st December 2008 will need to have a Home Report. The Home Report includes important information about the property and an Energy Performance Certificate (EPC) which provides a rating of the property's energy efficiency. The Home Report should help to improve the home buying and selling process by making available up front information relevant to the property. |
| Home Buyers | The homebuyer's report comments on the structural condition of most parts of the property that are readily accessible, but does not involve in-depth investigation or the testing of water, drainage or heating systems. |
| Housing | A non-profit making body which lets you buy a percentage of the property and pay rent on the rest. |
| IFA | Independent Financial Advisor |
| IMRO | Investments Managers Regulatory Organisation. Regulates investment managers. |
| Instruction | When a seller instructs an estate agent to market a property. |
| Joint Agency | Where two estate agents work together to market a property. |
| Joint Mortgage | A mortgage where there is more than one individual named responsible for the mortgage. |
| Land Certificate | A Land Registry certificate proving ownership of property. |
| Land Registry | The Government organisation that holds records of all registered properties in England and Wales. |
| LAUTRO | Life Assurance Unit Trust Regulatory Organisation. |
| Leasehold | To be given ownership of a property but not the land it is built on. This normally requires payment of ground rent to the landlord. A leasehold is normally offered for either 999 years, 99 years or shorter terms. |
| Local Authority | An application made to the appropriate Local Authority requesting details of any planning or other matters which might affect the property being sold. |
| Maintenance | A charge made towards the upkeep of a leasehold property. |
| Higher lending charge | Required by some lenders if your loan is for more than a required percentage of the value of the house. Although the borrower pays the premium, the policy protects the lender not the borrower. |
| Missives Concluded | See under ' Subject to Contract' |
| Mortgage deed | A legal document relating to the mortgage lenders interest in the property. |
| Mortgage offer | A formal written offer made by a bank or building society to lend an approved amount to purchase a property. |
| Multi-agency | The selection of two or more estate agents to act on the seller's behalf, usually incurring a higher fee than if the sale is completed by a sole agency. |
| Negative Equity | When the value of a property is less than the outstanding sum owed on a mortgage. |
| Offer | A bid made by a prospective buyer, this is not legally binding. |
| Offers Over | Offers are invited above the price shown. |
| Ombudsman | Independent professional bodies who investigate complaints on behalf of customers against estate agents, solicitors and insurance companies. |
| Part-possession | The term used when a property is being sold, where a tenant has legal right of occupation. |
| Private Treaty | The way in which most house sales are completed in England and Wales. |
| Property | Your home or the property you wish to sell or buy. |
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| Repayment | Monthly interest combined with capital repayment against the original sum borrowed. |
| Repossession | When loans are in default the mortgage lender can repossess the property and sell it so they can repay the debt. |
| Retention | Holding back part of a mortgage loan until repairs to the property are satisfactorily completed. |
| Sale Agreed | A verbal agreement from the seller. |
| Searches | Checks of local council records for planning applications and restrictions, etc. |
| Sole Agency | The choice of a single estate agent to act on the seller's behalf, incurring a lower fee than multi-agency. |
| Solicitor | Legal expert handling all documentation for the sale and purchase of a property. |
| Stamp Duty | A tax paid to the Government by the buyer upon completion. |
| Subject to | Words used to indicate that an agreement is not yet legally Binding. |
| Subject to Conclusion | Words used to indicate that an agreement is not yet legally binding. |
| Survey | An inspection made by a qualified surveyor. There are three main types of survey. Valuation report (for mortgage purposes), Homebuyers report (also comments on general condition) and Full Structural survey (examines structural detail). |
| Tenants | People living in a property owned by someone else. |
| Tender | The process whereby the seller asks for written offers on a property usually with a set closing date. |
| Title | The ultimate record of ownership of a property, the evidence of which is found in the title deeds. |
| Transfer Deeds | The Land Registry document that transfers legal ownership from seller to buyer. |
| Under offer | When the seller has accepted an offer on the property but contracts have not yet been exchanged. |
| Variable Interest | Rate of interest payment that fluctuates over time inline with general interest rates. |
| Vendor | The legal name sometimes used to describe the seller of the property. |
| Verbal Offer | Offer from prospective purchaser, not legally binding on either party. |
| Writ | Mode of commencing legal proceedings. |
| X | Exchange. |
| YOUR MOVE | Estate agents. |
| ZZZ | Rest when your move is complete! |
