A
 
Applicant
The person or party looking to rent a property

Appreciation
The increasment of value of the property due to changes in the market

Asset
Any form of property owned by a person which can be used to determine wealth.

Assured Shorthold Tenancy (AST)
This is the most common type of rental agreement, This document sets out the rights and obligations between the landlord and tenant where the rent term is 6 months or longer with a maximum rent of £25,000.

B

Bankruptcy Search
A type of investigation by the Land Charges Registry to check if someone has ever been bankrupt.

Bankers Draft
A cheque like payment which is guaranteed after a short fund clearance time

Break clause
A break clause is where a tenant or landlord has the right legally to terminate a Tenancy Agreement prior to the contract date.

Building survey
A survey carried out by a chartered surveyor with the purpose to create a detailed report of the structural condition of the property highlighting any defects.

Buy-to-let mortgage
A mortage type targeting buyers who wish to purchase a property with the intention to let it out.

C

CAT, Charges and Terms
Originally a government scheme to help borrowers, especially first time buyers by ensuring the fair cost of charges by mortgage lenders.

Chain
This is when 3 or more buyers rely upon the sale of their property to complete the purchase of a new property, if one buyer in the chain as a sale fallen through the chain may collapse effecting all connected down the line.

Common areas
Areas of building or outside space which are used by more than one resident such as parking areas, hallways and gardens.
Completion

The completion date
The date when the buyers solicitor forwards the money to the sellers solicitor to mark the date when the property has legally exchange ownership

Conditions of sale
These are the conditions set out by legislation which determine the rights of buyers and sellers.

Contract
A legal agreement drawn up between a Landlord and tenant.

Contract race
Where two parties have made an offer on the same property, usually ending on a first come first serve basis.

Contractual Tenancy
This is a type of Tenancy Agreement which is used when the yearly rent exceeds £25,000.

Converted flat
A part of a property which has been converted into a flat or apartment.

Conveyancer
Usually a solicitor or licensed conveyancer who deals with only the legal aspects of buying or selling properties.

Conveyancing
This is the legal process concerning the change of ownership of a property.

Conveyancing fee
A one time paying for the transfer of ownership for a property.

Council of Mortgage Lenders (CML)
Refers to the governing body that ensures the Mortgage Code is adhered to.

Covenants
Refers to the regulations of the property which are outlined in the title deeds or lease.

Credit check
The process in which an individuals credit history is checked to ensure payments of rent are likely. Areas checked include county court judgements, outstanding debts, arrears and credit card repayments.

Credit history
A statement of individuals past borrowing, bankruptcy and late payments on mortgages and loans.

D

Deeds
Legally binding statement documenting the ownership of a property.

Deeds release or discharge fee
The fee’s charged by the mortgage lender to cover the administrative costs of providing the owner of the property with the deeds.

Deed of VariationThis provides documentation of legal defects in the lease which is seldomly required in leasehold transactions and is signed by both the property owner and the freeholder.

Deposit
A deposit is the sum of funds which is paid by a tenant to the letting agent who then pay it into the TDPS prior to moving in a property. This sum is usually equivalent to 4-6 weeks rent.

Depreciation
The reduction of the value of a property due to changes in market conditions.

Detached
Describes a property that stands alone in that it is not connected to any other property.

Development
A new site of house which has recently been built.

Dilapidations
Any costs which are incurred on a property due to damage from tenants, these costs are usually taken from the deposit.

Disbursements
Fee’s payed by solicitors on behalf of the buyers for fee’s such as stamp duty.

Down valuation
This describes the action when mortgage lenders restrict the amount you can borrow after the surveyor reports that the property is not worth the offer price.

E

Easement
A legal right given to a property owner, e.g. for access to their property.

Electrical Equipment (Safety) Regulations 1994
Legislation regulating and ensuring that electrical equipment it properly maintained and checked by a trained electrical engineer to ensure safety.

Encroachment
A part of a property or an object which extends onto another property making it an illegal encroachment.

Engrossment
The final copy of the deeds that is signed to make it legally binding.

Energy Performance Certificate (EPC)
EPC’s are a legal requirement which are carried out by a proffesional on a property to evaluate the energy efficiency of the building, which rate the property on a scale between A and G, ‘A’ being the highest best rating.

Exchange of contracts
This is the term used to explain the point at which the contracts are signed and exchanged between the buyer and seller, this is also the point where the buyer pay a deposit which is usually around 10%.

F

Financial Services Authority (FSA)
This is the governing body that regulates financial services within the UK.

Fixtures & fittings
This describes all objects which are not structural of the property. These are items are usually included in the sale and rental of a property..

Flying freehold
This describes a part of a property that extends over or under a neighboring property.

Freehold
Where a property owner owns that land which the building is built.

Furniture and Furnishings (Fire) (Safety) Regulations 1988 & (Amendment) 1993
This regulates all furniture, upholstery and furnishings to meet fire safety standards to certify the property as safe.

G

Gas Safety Regulations 1998
This is a requirement for all gas appliances to be inspected by a qualified Gas Safe Register to certify the safety of the appliance to make the property legally safe for tenants.

Gazumping
This is when a seller is offer a high bid for there property which they accept having already agreed to an offer where the exchange of contracts has not yet taken place.

Gazundering
This is the phrase used to describe when a buyer reduces their offer before the exchange of contracts.

Ground rent
The annual fee levied by a freeholder to the leaseholder.

Guarantor
This is when the tenant may require someone they know to pay rent or charges if the tenant defaults, guarantors are also responsible for the behavior of the tenant. Guarantors are generally required for tenants from overseas or those with a poor credit history.

H

Homebuyer's survey and valuation
This describes the survey which is carried out on the property to assess the overall state of a property and to determine its value.

Houses in Multiple Occupancy (HMO)
This describes a building which spans three or more floors and is occupied by three or more people who live separately but share facilities such as bathrooms and kitchens

I

IFA
Stands for an Independent Financial Advisor.

Inventory
This is a list of all the furnishings and contents of a property which details the condition of the listed items before the start of a tenancy.
 
J

Joint tenants
This term describes the ownership of a property stating that if one dies the share of the property will automatically transfer to the remaining tenant regardless of what is stated in the deceased’s will.

L

Land registration
The legal registration process of titling a land with the land registry.

Land registry fee
The fee payable for titling land with the land registry.

Landlord
The owner of property that is rented.

Landlord's reference
A reference written by a previous landlord which describes the rent punctuality and conduct of a tenant.

Lease
Refers to a legal document which states that the owner of a property has let a property or part of a premises for a specified length of time.

Lease agreement
A legal document between the Landlord and a tenant that states the terms of agreement between them setting out legal rights of the letting.

Leasehold
This is where a property stands on land owned by someone else where a freehold will be granted for a specified time. E.g. when you may buy a property which is freehold, meaning you own the property but not the land it stands on.

Listed building
A term given to a building which is either old, of historical interest or holds special architectural interest. Listed buildings cannot be altered without consent from a local government authority.

Local authority search
Research carried out by a buyers solictor to check with the local council regarding any outstanding future developments or issue in or around the property affecting the surrounding area.

Long let
Describes a rental period which is for a period of six months or more.

M

Maintenance charge
The costs charged to a Landlord for repairing part of their property.

Maisonette
A self contained apartment which is often part of a larger building allowing an entrance directly from outside.

N

NHBC scheme (National House-Building Council)
A guarantee on some new build property which states the repairing of any property defects within a period of time after purchase.

National Approved Letting Scheme (NALS)
Given to letting agents to accredited that their standards of service are high giving both Landlords and tenants peace of mind.

Negative equity
A term used to describe when a property has fallen below the level of money borrowed on it.

O

Off-Plan
When a brand new home is purchased before it has been built by only looking at plans and artistic impressions.

Offer
An offer for either a property or a level of rent for a letting.

Office copy entry
A document confirming the ownership and borrowing against a property.

Open market value
A price of a property which can be achieved by the current demand of the market.

P

Peppercorn ground rent
A rent which is paid annually

Pied à terre
A second home for either temporary or holiday occupation.

Portable Appliance Test (PAT)

Test required to be taken out on electrical equipment by a registered engineer in conjunctiion with the Electrical Equipment (Safety) Regulation 1994.

Preliminary enquiries
All initial enquiries asked to a seller which must be answered before the exchange of contracts.

Premium lease
A term used which requires the rent for a property in paid for in full upfront.

Property Management
The management of a property by an agency on behalf of an owner. Callaways Estate Agents and Lettings Agents Brighton and Hove specialise in property management.

Purchaser
Someone who is buying a property.

R

Redemption
A term used to explain when a mortgage is fully repaid.

Renewal of contracts
The renewal of contracts for a new rental period.

Repossession
When a lender takes possession of a property after non payments of a mortgage.

S

Search
The research on a property undertaken by either the Land Registry or a Local Authority.

Semi-detached
A property that is joined to one other house.

Seller’s Leasehold Information Form
A form which states the terms and conditions of the leasehold agreement.

Share of freehold
Where a freehold is owned by a limited company and the shareholders of the company share the freehold.

Short let
Short lets are typically a property which is let for six months or less and include most utility builds.

Sitting Tenant
Someone occupying a property without conforming to the agreement and has become protected by law from being remove due to their circumstances.

Sole agent
Describes whena seller chooses only one estate agent to sell their property.

Sole occupancy
A property which is lived in only by the mortgage applicants.

Solicitor
Alegal representative who handles all legal documentation in the purchase and sale of a property.

Stamp duty
A tax paid by purchasers, the amount payable depends on the value of the property and if the purchaser is a first time buyers.
Up to £125,000 Zero
Over £125,000 to £250,000  1% (First time buyer 0%)
Over £250,000 to £500,000  3%
Over £500,000  4%

Structural survey
A detailed report of the general structure and condition of the property.

Studio flat
A flat which is made up of one main room with a separate bathroom.

Subject to contract
Any agreements that are not yet legally binding.

Surveyor
A professional who estimates the value of the property or land.

T

Telegraphic TransferAn electronic transfer of money for the purchase of a property from a lender, a fee is often charged by the solicitor.

Tenancy
The temporary resdiodency of a property by a tenant.

Tenancy Deposit Protection Scheme (TDPS)
Deposits from a tenant paid into the a protection scheme to ensure safety and fair returns.

Tenancy agreement
A legal agreement set out to protect the legal rights of the tenant and Landlord.

Tenant
An individual or group who has the residency of a property in return for the payment of rent.

Tenants in common
An ownership of a property which protects the share of the property if one tenant dies, this share is saved for the deceased estate.

Tenure
Explains the length of the lease.

Terraced house
A property that is part of a row of houses.

The Property Ombudsman (TPO)
A free scheme for estate agents and letting agents to joint which ensure that they provide a high level of service to sellers, buyers, landlords and tenants.

Title deeds
Documentation of the legal ownership of a property.

Title insurance
A type of insurance policy that a buyer can take out on a piece of land to ensure the sale is completed when there is a potential problem with the documentation regarding the legal ownership of the land.

Title search
An investigation, carried out by a conveyancer or solicitor, into the history of ownership of a property. The search will check for liens, unpaid claims, restrictions or any other problems that may affect ownership.

Transfer deeds
A legal document that transfer the ownership from seller to the buyer.

U

Under offer
When a seller or Landlord of a property for  sale, or to rent has accepted an offer but the exchange of contracts has not yet taken place.

Unregistered Land
Land or property not yet registered on Land Registry database.

Where the present occupants (owners or tenants) must vacate the property before the new occupants move in.

Valuation
A survey of the property to establish its letting value.

Value
The value of a property when there are no outside influences such as price reductions for keeping chains together.

Vendor
Someone who is selling a property.

Void period
The period of time in which a property unoccupied.

Y

Yield
Income generated by a property by rental in relation to its value.