Buying Glossary
A
Mortgage Loan.
Annual Percentage Rate of Charge, total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit, including interest and other charges applying.
B
A temporary loan advanced to help buy a new property before the existing one has been sold.
C
The date set for submission of offers when more than one party show interest in the property.
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.
See under 'Subject to contracts exchanged'
D
E
F
Financial Intermediaries Managers & Brokers Regulatory Authority.
Offers are invited at the price shown
Ownership of the property and land upon which the property is situated.
A full structural survey looks at all the main features of the property, including walls, roof, foundations, plumbing, joinery, electrical wiring, drains, and garden.
G
The practice by a seller accepting a higher price than that previously agreed with someone else.
The practice by a buyer lowering his offer just before exchange of contracts.
The annual fee which a leaseholder pays to a freeholder.
H
A non-profit making body which lets you buy a percentage of the property and pay rent on the rest.
I
Independent Financial Advisor
Investments Managers Regulatory Organisation. Regulates investment managers.
When a seller instructs an estate agent to market a property.
J
Where two estate agents work together to market a property.
A mortgage where there is more than one individual named responsible for the mortgage.
L
A Land Registry certificate proving ownership of property.
The Government organisation that holds records of all registered properties in England and Wales.
Life Assurance Unit Trust Regulatory Organisation.
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.
An application made to the appropriate Local Authority requesting details of any planning or other matters which might affect the property being sold.
M
A charge made towards the upkeep of a leasehold property.
Scotland only. The solicitors must agree on the written negotiations of the sale - the 'missives'. This can only be done once a mortgage offer is received. When the missives are agreed, this is known as 'conclusion of missives'. Both parties are now legally bound to the sale/purchase.
A legal document relating to the mortgage lenders interest in the property.
A formal written offer made by a bank or building society to lend an approved amount to purchase a property.
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.
N
When the value of a property is less than the outstanding sum owed on a mortgage.
O
A bid made by a prospective buyer, this is not legally binding.
Offers are invited above the price shown.
Independent professional bodies who investigate complaints on behalf of customers against estate agents, solicitors and insurance companies.
P
The term used when a property is being sold, where a tenant has legal right of occupation.
The way in which most house sales are completed in England and Wales.
Your home or the property you wish to sell or buy.
R
Your monthly repayment includes part interest and part capital repayment. So long as you meet all of the payments required by the lender on time, your mortgage will gradually reduce until it is repaid in full at the end of the mortgage term.
When loans are in default the mortgage lender can repossess the property and sell it so they can repay the debt.
Holding back part of a mortgage loan until repairs to the property are satisfactorily completed.
S
A verbal agreement from the seller.
Checks of local council records for planning applications and restrictions, etc.
The seller chooses a single estate agent to act on their behalf, incurring a lower fee than multi-agency.
Legal expert handling all documentation for the sale and purchase of a property.
A tax paid to the Government by the buyer upon completion.
Scotland only. Words used to indicate that an agreement is not yet legally binding.
Words used to indicate that an agreement is not yet legally Binding.
An inspection made by a qualified surveyor. There are three main types of survey as detailed in the brochure produced by our sister company, e.surv Chartered Surveyors.
T
People living in a property owned by someone else.
The process whereby the seller asks for written offers on a property usually with a set closing date. When a property is sold by tender, the buyer pays the fees.
The ultimate record of ownership of a property, the evidence of which is found in the title deeds.
The Land Registry document that transfers legal ownership from seller to buyer.
U
When the seller has accepted an offer on the property but contracts have not yet been exchanged.
V
Rate of interest payment that fluctuates over time inline with general interest rates.
The legal name sometimes used to describe the seller of the property.
Offer from prospective purchaser, not legally binding on either party.
W
Mode of commencing legal proceedings.
X
Exchange.
Z
Rest once your move is complete.