Jargon buster: buying and selling
Become more familiar with terms often used in the property market
Become more familiar with terms often used in the property market
The process of buying or selling a home can be confusing at the best of times, and that’s without all the terminology that comes along with it. Whether you're speaking with an estate agent, mortgage advisor, surveyor, or someone else – you know someone’s going to use a phrase or term you’re not familiar with.
Fear not, we’re here for you! To help you quell the confusion, we’ve compiled all the terms you’re likely to hear, but might not be familiar with, in our jargon buster.
The document that is issued by a mortgage lender to a potential buyer and confirms the acceptance of a mortgage offer.
This is provided by a mortgage lender and confirms that they are prepared to lend the potential buyer the funds to complete a purchase, subject to the approval of the property.
Amenities are features that can increase the value of your property. Often referred to as local amenities, these can be factors such as where it’s located or what shops or transport connections are easily accessible.
A fee charged by some lenders to cover the administrative cost of arranging a mortgage – these are often charged to deals, e.g. special or fixed rate mortgages.
The amount of money the seller is hoping to earn from their home. Note that there may be variations in wording. For example, in Scotland a property price tends to be advertised with the words ‘offers over’.
The act of transferring the right or interest in a property from one person to another.
This is a report on the physical condition of a property and conducted by a chartered surveyor.
This type of insurance helps to cover damage to your property in the event of fires, floods or other incidents.
The connected line of people who need to sell their current home to buy the next one – if, for example, one link (person) in the chain pulls out of their sale, the whole chain can collapse. Property chains occur mostly in England and Wales and are not applicable when buying property in Scotland.
The conclusion of the sale – when the buyer receives the keys.
The legal process of transferring the ownership of a property, e.g. from a seller to a buyer. Looking for more information on conveyancing? Find it here.
When a borrower fails to meet their agreed repayment schedule – this applies to any kind of loan, including a mortgage.
The money you’ll need to pay upfront to secure a mortgage to buy a home – deposits are usually 10% of a home’s value, but this may vary.
These are fees that are paid by the solicitor on behalf of the buyer, e.g. stamp duty or money transfer fees.
A right that affects a property, such as the right of a neighbour to use a private road.
A certificate that details how energy efficient a property is. The certificate ranks properties on a scale of A-G (with A being the most efficient). EPCs offer an estimation of energy costs and recommendations as to how the efficiency of a home can be improved.
The difference between the value of a property and the amount of mortgage owed.
The point at which signed contracts between a buyer and seller are exchanged, in which they legally commit to the purchase/sale of the property at the agreed price.
Fixtures are items that have become part of a building or land and are included in a sale, e.g. a garage. Fittings are not attached to the building or land and are not included in the sale unless agreed, e.g. kitchen appliances.
The freeholder of a property owns it outright, including the land the property is built on. If you own the freehold of a property, you’re responsible for maintaining the property and the land it sits on.
When a sale is agreed at a certain price, but the seller accepts a higher offer from another buyer. Looking for more information on gazumping? Find it here.
This does not apply to the Scottish property market.
Where a buyer reduces their offer at the point of exchanging contracts to try to purchase a property for a lower price.
This does not apply to the Scottish property market.
The annual charge made by the freeholder to the leaseholder for the right to occupy the property.
A guarantor commits to making payments, e.g. on a mortgage, when the borrower fails to keep up with their repayments. Guarantors may be a family member or close friend.
An independent financial adviser. This is an independent person who can help find the best product for you. They may sometimes be referred to as brokers.
When a property owner asks an estate agent to market their property for sale.
A form of ownership for two parties whereby if one of them dies, their share of the property will automatically transfer to the remaining party, giving them full ownership (regardless of the terms of the deceases owner’s will).
A fee charged by the Land Registry to record the change in ownership of a property.
A legal document issued by a freeholder granting tenure to a leaseholder for a given period of time
The ownership and right to occupy a property by way of a lease for a given period – leases usually range from 90 to 999 years.
A building officially listed as being of special architectural or historic or cultural interest, which cannot be demolished or altered without local Government consent.
The amount you are borrowing on your mortgage in relation to how much your property is worth.
When a conveyancer, on behalf of the buyer, sends a list of questions about a property to the seller’s conveyancer.
A property which is joined to one other house.
The option to buy a share of a property (between 25-and 75%) from a housing association – you will then pay rent on the share of the property you don’t own.
Tax paid to the government by a buyer after purchasing a property – the rate of tax paid depends on the value of the home bought.
England refers to this tax as ‘stamp duty land tax’, read more about how it all works in our insider’s guide. In Scotland, this falls under Land and Buildings Transaction Tax, read more about this here. For Wales, please refer to the Land Transaction Tax, for which you can find more information here.
A flat consisting of one main room or open-plan living area incorporating cooking and sleeping facilities and a separate bathroom/shower room.
A provisional agreement that is not yet legally binding as contracts have not been exchanged – at this point either party can still withdraw from the agreement.
A report determining whether there are any structural faults in a property. Find out more about surveying here. Again, please note, that in Scotland this is included as part of the Home report.
A professionally qualified expert who carries out a survey.
Where the seller has accepted an offer from a buyer, but the exchanging of contracts has not been completed.
A term used by estate agents to cover the process of finding a property’s market value. Get your property valued here.
A survey that is carried out on behalf of the mortgage lender to establish the amount and terms of the loan.
A vendor is a person selling a property.
Rental income from a property calculated as a percentage of its value.
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