{"id":3458,"date":"2025-06-20T15:37:30","date_gmt":"2025-06-20T14:37:30","guid":{"rendered":"https:\/\/northwood1dev.wpenginepowered.com\/?page_id=3458"},"modified":"2026-05-26T13:10:48","modified_gmt":"2026-05-26T12:10:48","slug":"jargon-buster","status":"publish","type":"page","link":"https:\/\/www.northwooduk.com\/selling\/jargon-buster\/","title":{"rendered":"Jargon Buster"},"content":{"rendered":"\t\t
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Property Jargon Buster: Clear Definitions for Every Property Term<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In the world of property there is an overwhelming array of acronyms and specialist terminology used. We know it can be a little alienating so the following jargon buster describes all the terminology described in simple terms. We hope it helps!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Advance<\/strong>\u00a0\u2013 A mortgage loan \u2013 an additional loan is referred to as a further advance.<\/p>

Adverse Credit<\/strong>\u00a0\u2013 Used to apply to a borrower or application that has past problems with bad credit, for instance frequent late payment, breached arrangement, bankruptcy or County Court Judgement.<\/p>

AML Fees<\/strong>\u00a0\u2013 Agents are required by law to conduct anti-money laundering checks on all those selling or buying a property. Our offices may complete these in house or outsource the initial checks to a partner supplier who will contact you once you have agreed to instruct us in your sale or had an offer accepted on a property you wish to buy. The cost of these checks will be advised to you by the office before you commit to their services.\u00a0 These charges cover the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee will need to be paid by you in advance of your property being published (in the case of a vendor) or issuing a memorandum of sale (in the case of a buyer).<\/p>

APR (Annual Percentage Rate)<\/strong>\u00a0\u2013 The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation assumes that you maintain the mortgage for the full term. APR is an industry standard calculation and enables direct comparison of mortgages from all lenders.<\/p>

Arrears<\/strong> \u2013 Rent that has not been paid by the tenant by the date agreed in the tenancy agreement, either in full or in part.<\/p>

Architects Certificate\u00a0<\/strong>\u2013 A certificate provided by an architect, which confirms their overseeing of the construction of a building. Building societies are unlikely to lend on a new-build house in the absence of either an architect\u2019s certificate or an NHBC warranty or equivalent.<\/p>

Arrangement fee<\/strong>\u00a0\u2013 The cost that a lender applies to secure a product.<\/p>

Assignment<\/strong>\u00a0\u2013 The transfer of ownership of an insurance policy or a lease.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Balance Outstanding\u00a0<\/strong>\u2013 The amount of loan owed at a particular time.<\/p>

Bank of England Base Rate\u00a0<\/strong>\u2013 The Bank of England sets a rate each month known as the \u2018Base Rate\u2019. Banks and Building Societies use the Base Rate to set the interest rates they pay on deposits, or charge on debts.<\/p>

Betterment\u00a0<\/strong>\u2013 The Law does not allow for betterment which means a Landlord cannot expect to have old replaced with new at the tenant\u2019s expense or charge cleaning costs for that are already soiled at the start of the tenancy. An allowance must be made for depreciation and fair wear and tear.<\/p>

Bridging Loan \/ Bridging Finance\u00a0<\/strong>\u2013 A temporary loan advanced to help somebody buy a new property before they have sold their existing one. Beware \u2013 it can prove very expensive in an uncertain market.<\/p>

Buildings Insurance\u00a0<\/strong>\u2013 Buildings insurance covers loss or damage to the physical structure of your home, for example, the roof, walls and floors. The value of your buildings insurance will be less than the value of your home as it is the cost to rebuild alone, not the cost of purchase.<\/p>

Building Regulations<\/strong>\u00a0\u2013 The health and safety requirements that any new construction must meet.<\/p>

Building Society\u00a0<\/strong>\u2013 A mutual institution owned by its investors and borrowers that provides a range of savings and mortgages.<\/p>

Buy to Let\u00a0<\/strong>\u2013 Is an income-producing residential investment, with the potential for making a capital gain when the property is sold. The key word here is \u2018potential\u2019. Often, when yields are high, capital growth may fall and vice versa.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Cashback Mortgage<\/strong>\u00a0\u2013 You receive a lump sum or a percentage of your mortgage in cash when you complete your mortgage. These are very rare.<\/p>

Charge<\/strong>\u00a0\u2013 An interest in the ownership of a property; usually a mortgage or some other debt secured against the property.<\/p>

Check-in<\/strong>\u00a0-This is the process of moving a tenant into a rental property for the first time. The check-in process should include an inventory which describes in detail the condition of the property prior to the tenant moving in.<\/p>

Check-out<\/strong>\u00a0\u2013 This is the process of moving the tenant out of the property and includes making sure the property is being returned in the same condition as it was originally let to the tenant at check-in, subject to fair wear and tear.<\/p>

Completion<\/strong>\u00a0\u2013 End of the purchase process. The seller moves out, the buyer moves in and ownership is transferred once the money is paid to the seller.<\/p>

Contents Insurance<\/strong>\u00a0\u2013 Insurance against accidental damage or theft of all moveable contents, including furniture, appliances and soft furnishings.<\/p>

Contract\u00a0<\/strong>\u2013 A document that describes the agreement under which the property will change hands.<\/p>

Contract Race<\/strong>\u00a0\u2013 This occurs when two parties have made an offer on the same house, usually at the same price. The vendor will sell to whichever party exchanges contracts first. All parties must be aware that more than one contract has been issued.<\/p>

Conveyancer\u00a0<\/strong>\u2013 A person other than a solicitor who may conduct the conveyancing.<\/p>

Conveyancing<\/strong>\u00a0\u2013 The process of transferring property from one party to another, usually managed by a solicitor or a licensed conveyancer.<\/p>

Covenant<\/strong>\u00a0\u2013 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 specific. A binding promise in a deed to do or not to do something i.e. maintenance of a fence, or restrictions to trading from a premises<\/p>

Credit Search References\u00a0<\/strong>\u2013 References requested for a tenant applying for rented accommodation. Many agents and individual landlords use external companies who will contact the applicant\u2019s employer, landlord and also check out the tenant\u2019s credit history and search public records, providing a report on the prospective tenant\u2019s financial suitability to rent.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Debt Consolidation\u00a0<\/strong>\u2013 The process of combining outstanding debts e.g. loans, credit cards etc, into one loan.<\/p>

Deeds<\/strong>\u00a0\u2013 Legal documents that show who owns a property or piece of land.<\/p>

Defective Lease<\/strong>\u00a0\u2013 A badly drafted lease. If this is serious, the vendor may have to obtain a deed of variation \u00c2\u201dgetting the freeholders permission to change the original terms of the lease. This can be a lengthy process as it may affect other leaseholders.<\/p>

Deposit (sales)<\/strong>\u00a0\u2013 Sum of money which the buyer puts down to secure the mortgage loan after\u00a0exchange\u00a0of contracts, usually 5 to 10 per cent of the purchase price.<\/p>

Deposit (lettings)<\/strong> \u2013 A sum of money, usually capped at no more than 5 weeks\u2019 rent, held as security against damage, unpaid rent or breaches of the tenancy agreement. The deposit must be protected in a government-approved tenancy deposit scheme.<\/span><\/p>

Deposit\u00a0 Protection Schemes<\/strong>\u00a0\u2013 These government-backed schemes ensure your tenants will get their deposit back if they: meet the terms of your tenancy agreement; don\u2019t damage the property; and pay the rent and bills. Your Landlord (or your letting agent) must put the tenants\u2019 deposit in the scheme within 30 days of the deposit being handed over. At the end of the tenancy the deposit must be returned to the tenants within 10 days of agreement on how much the tenant will get back. If you\u2019re in a dispute with your tenants, the deposit is protected in the TDP scheme until the issue is settled.
Dilapidations \u2013 Damage to a property, missing items in an inventory, re-decoration required etc, usually assessed on the check out at the end of the tenancy. Landlord\u2019s may only seek equitable reparation subject to fair wear and tear.<\/p>

Direct Debit\u00a0<\/strong>\u2013 A Direct Debit is an instruction from a customer to their bank or building society to make regular payments direct from their account.<\/p>

Disbursements\u00a0<\/strong>\u2013 All the various costs for carrying out the legal work in relation to buying or remortgaging your home such as searches other than the legal costs.<\/p>

Discharge\u00a0<\/strong>\u2013 Paying off a mortgage.<\/p>

Discount Mortgage\u00a0<\/strong>\u2013 A discount offered by mortgage lenders to borrowers, reducing monthly mortgage repayments often for the first two or three years of the loan period.<\/p>

Dutch Auction<\/strong>\u00a0\u2013 The original meaning refers to an auction in reverse, where an offer price is announced and the auctioneer gradually reduces it until a bid is made. However this meaning has been lost, and a Dutch auction now refers to the informal bidding that takes place when two or more potential buyers are outbidding each other for a property.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Easements<\/strong>\u00a0\u2013 A term given to a right which someone may enjoy over another property. These can be rights of way, drainage rights, or more likely access to a neighbour\u2019s land in order to carry out repairs to their own property.<\/p>

Early Repayment Charge<\/strong>\u00a0\u2013 A charge payable on some mortgages if they are repaid early (during an Early Repayment Charge period). The amount depends on the mortgage outstanding and the terms of the mortgage.<\/p>

Energy Performance Certificate (EPC)\u00a0<\/strong>\u2013 This is a legally required assessment of how energy efficient a residential property is. It is valid for 10 years and is required for all properties which are advertised for sale or rent with certain exceptions.<\/p>

Enfranchisement \u2013<\/strong>\u00a0Leasehold Enfranchisement is simply the technical name given to the process by which tenants can, in certain circumstances, buy their freehold or acquire a new lease (often called a \u2018lease extension\u2019) from their landlords. Buying your freehold (also known as Collective Enfranchisement) under the The Leasehold Reform Housing and Urban Development Act 1993 gives tenants the right to acquire the freehold of their building. Subject to certain exclusions, tenants can exercise this right as long as at least 50% of the tenants in their building wish to proceed. The Act also gives individuals the right to a new lease (also known as lease extension or renewing a lease) and further right to tenants to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free).\u00a0 Subject to certain exclusions, tenants can exercise this right if they have owned their flat for at least 2 years.<\/p>

Equity<\/strong>\u00a0\u2013 The difference between the value of a property and the amount of mortgage\u00a0and \/ or\u00a0secured loans owed.<\/p>

Exchange of contracts\u00a0<\/strong>\u2013 The point at which both buying and selling parties sign their copies of the contract which are exchanged by their respective legal representatives and are legally binding. The buyer usually pays a deposit at this point and the date of completion is agreed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Fair Wear & Tear \u2013<\/strong>\u00a0There is no legal definition of \u201cfair wear and tear\u201d. It is subjective and depends on a number of factors. Essentially, it is the amount of damage or deterioration that can be reasonably expected in all the circumstances. You could define it as damage caused by ageing and normal use. In the context of a residential letting, it means damage to carpets, decorations, fixtures, fittings and furniture that would reasonable by expected during a tenancy and allowing for the lifespan of the item in question.<\/p>

Financial Conduct Authority (FCA)<\/strong>\u00a0\u2013 The FCA regulate the financial services industry in the UK. Their aim is to protect consumers, ensure the industry remains stable and promote healthy competition between financial services providers.<\/p>

Fixed rate mortgage<\/strong>\u00a0-A mortgage where the interest rate is fixed for a specific time. It then normally reverts back to a variable rate.<\/p>

Fixtures and Fittings<\/strong>\u00a0\u2013 Non-structural items included in the purchase of a property ranging from curtains to white goods and disclosed in the fixtures and fittings list.<\/p>

Flexible Mortgage<\/strong>\u00a0\u2013 An arrangement enabling the mortgage borrower to overpay, and with the overpayments that have been built up, borrow money back, take payment holidays or pay less in some months.<\/p>

Flying Freehold<\/strong>\u00a0\u2013 This can occur when first floor accommodation forming part of one freehold is located over ground floor accommodation forming part of another freehold. The first floor freeholder does not own the land beneath the property, and is then said to own a flying freehold\u00c2\u201d.<\/p>

Freehold\u00a0<\/strong>\u2013\u00a0Legal\u00a0title that gives you absolute ownership of the land your property is on.<\/p>

Full Structural Survey<\/strong>\u00a0\u2013 A full structural survey looks at all the main features of the property, including walls, roof, foundations, plumbing, joinery, electrical wiring,\u00a0drains, and garden.<\/p>

Further Advance<\/strong>\u00a0\u2013 An additional loan to your existing mortgage taken after the main mortgage has completed which is also secured against the property.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Gas Safety Certificate<\/strong>\u00a0\u2013 If you are a landlord letting a property equipped with gas appliances you need to understand and comply with the law relating to gas safety. If you let a property, you must make sure that pipe work, appliances and flues provided for tenants are maintained in a safe condition. You need to have a gas safety check every year. A Gas Safe registered engineer must carry out the safety check in your properties. You must give your tenants a copy of the gas safety record within 28 days of it being carried out or before they move in. You are also obliged to show your tenants how they can turn off the gas supply in the event of a gas leak.<\/p>

Gazumping<\/strong>\u00a0\u2013 When a seller pulls out of a sale after accepting an offer above the asking price. Often mistakenly used by people who have made an offer below the asking price and where a higher offer is later accepted. If you don\u2019t offer the asking price, you may lose out.<\/p>

Gazundering<\/strong>\u00a0\u2013 A tactic whereby the buyer offers less than the agreed price just before exchange of contracts, usually at the last minute.<\/p>

Ground Rent<\/strong>\u00a0\u2013 The fee which a leaseholder pays to a freeholder.<\/p>

Guarantor\u00a0<\/strong>\u2013 A guarantor is someone who promises to pay your mortgage or rent if you can\u2019t or won\u2019t for any reason. This guarantee is legally binding.<\/p>

Guaranteed Rent<\/strong>\u00a0\u2013 You receive fixed monthly payments regardless of whether the property is \u2018let\u2019 or \u2018vacant\u2019 and even if the tenant stops paying. We offer a minimum 12 month contract during which we manage every aspect of the tenancy. There are absolutely no fees, commissions or hidden extras to pay. The key difference between Guaranteed Rent and more traditional services is that it is a contractual agreement between us and you (the landlord) in which we, effectively, become your tenant. This is NOT to be confused with an insurance policy which may have excesses and limits. *Terms and conditions apply<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Higher Lending Charge<\/strong>\u00a0\u2013 This charge is payable (usually added on to your loan) if you borrow more, for\u00a0example,\u00a0than 90% of the valuation or purchase price of your property.<\/p>

HMO \u2013 House in Multiple Occupation<\/strong>\u00a0\u2013 This term covers many categories of housing where a house is \u2018occupied by persons who do not form a single household\u2019. If in doubt, you should check with your local authority as in such cases, the property may need to be licensed if it falls into this category.<\/p>

Home Buyers Report\u00a0<\/strong>\u2013 This is an intermediate-level survey which is usually offered by the mortgage lender and prepared by their own surveyor. The homebuyer\u2019s report comments on the structural condition of most parts of the property that are readily accessible, but it does not involve in-depth investigation or the testing of water, drainage or heating systems.<\/p>

Home Contents Insurance<\/strong>\u00a0\u2013 A policy insuring household contents against theft and damage.<\/p>

Home Envirosearch\u00a0<\/strong>\u2013 A report on detailed flood, subsidence and land contamination history for each UK\u00a0neighbourhood.<\/p>

Holding Deposit-<\/strong> A holding deposit is intended to reserve a rental property. The landlord\/agent does this by taking the property off the market, though new enquiries should still be recorded. If the letting goes through, the holding deposit can be credited to the main deposit or the rent or retuned depending of office process. If the letting does not go ahead, through the fault of the prospective tenant, then it\u2019s usual for the deposit or part of the deposit to be retained in compensation for lost time \u2013 this belongs to the landlord. In this respect it\u2019s important not to take too much as a holding deposit \u2013 no more than one week\u2019s rent is usually about right and should compensate fairly if retained. If the letting does not go ahead through the fault of the landlord \/ agent then the deposit should be refunded. In all cases there should be a written Holding Deposit Agreement \/ Receipt which makes it very clear what will happen to the deposit in these eventualities and when the deposit should be returned or retained. It is important to remember that paying a holding deposit is in no way legally binding on either party.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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IFA<\/strong>\u00a0\u2013 Independent Financial Advisor.<\/p>

IDD \/ Initial Disclosure Document<\/strong>\u00a0\u2013 This is a document designed to assist you in comparing the services provided and the fees and charges made by lenders and intermediaries.<\/p>

Identity checks<\/strong>\u00a0\u2013 Letting agent must make checks on both landlords and tenants to ensure they are who they say they are. Examples include passport, driving licence, bank statements and utility bills of a previous address you have lived at for three or more years. The money laundering regulations govern these checks<\/p>

Informal Tender<\/strong>\u00a0\u2013 Requires competing buyers to submit their best bids by a specific time and date. It is not a legally binding contract and the vendor is at liberty to accept a higher offer at any time. Estate Agents are legally required to pass on all offers unless instructed not to do so in writing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Joint & Several Liability<\/strong>\u00a0\u2013\u00a0 Where there is more than one adult living in the property, the tenancy will say they are \u201cjointly and severally\u201d responsible. This means that, jointly, the tenants are liable for the payment of all rents and all liabilities falling upon the tenants during the tenancy, as well as any breach of the Agreement. Individually each tenant is responsible for payment of all rent and all liabilities in relation to the tenancy, as well as any breach of the agreement until all payments have been made in full.<\/p>

Joint Mortgage<\/strong>\u00a0\u2013 A mortgage where there is more than one named individual responsible for the contract.<\/p>

Joint Sole Agency<\/strong>\u00a0\u2013 This is when you employ two agents to sell your property and where both receive a commission irrespective of which one introduces a buyer. The agents agree to split the fee upon the sale of the property. The agent that sells the property usually gets a higher percentage of the fee. The ratio is pre-agreed with you and written into the agreement.<\/p>

Joint Tenants<\/strong>\u00a0\u2013 A form of ownership frequently used by couples which ensures that when one dies, the property passes automatically to the other. The alternative is Tenancy in Common.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Key Facts Illustration (KFI)<\/strong>\u00a0\u2013 This document contains key mortgage information which is designed to help you compare the costs and features of different mortgages from one or more lenders. It is designed to make it easy to compare mortgages at a glance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Land Certificate\u00a0<\/strong>\u2013 A Land Registry certificate proving ownership of a property.<\/p>

Land Registry<\/strong>\u00a0\u2013 A government\u00a0organisation\u00a0that holds records of all registered properties in England and Wales.<\/p>

Land Registry Fee\u00a0<\/strong>\u2013 A fee paid to the Land Registry to register your details if you have bought a property or changed mortgage lenders.<\/p>

Leasehold<\/strong>\u00a0\u2013 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. Length of lease varies and diminishes with time but can be renewed or extended \u2013 see Enfranchisement.<\/p>

Licensee \u2013<\/strong>\u00a0An agreement giving the right to occupy accommodation. Licenses provide less security than a tenancy agreement.<\/p>

Life Assurance\u00a0<\/strong>\u2013 Insurance which pays out on the death of the policy holder. Policies can run alongside your mortgage and will pay off all or part of the outstanding debt in the event of your death.<\/p>

Listed Building<\/strong>\u00a0\u2013 A building which is listed as being of special historical or architectural interest, which cannot then be demolished or altered without local government consent.<\/p>

Local Authority Search<\/strong>\u00a0\u2013 A search of the local area to highlight anything that may impact on the property or surrounding area, e.g. planned road building, planning permissions etc<\/p>

Loan to Value (LTV)\u00a0<\/strong>\u2013 The amount of mortgage expressed as a percentage of the property value. For example, if your mortgage amount was \u00a380,000 and your property is valued at \u00a3100,000 your loan to value, or\u00a0LTV,\u00a0is 80%.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Maintenance Charge<\/strong>\u00a0(or Service Charge) \u2013 The cost of repairing and maintaining external\u00a0and \/ or\u00a0internal communal parts of a building, which are then charged to the tenant or leaseholder.<\/p>

Maisonette<\/strong>\u00a0\u2013 Technically a maisonette is an apartment which is on two levels, with its own separate access. Although generally properties on two levels, with or without separate access, are sometimes referred to as maisonettes.<\/p>

Monthly Interest<\/strong>\u00a0\u2013 A method of calculating mortgage interest on a monthly basis.<\/p>

Mortgage Deed<\/strong>\u00a0\u2013 A legal document relating to the mortgage lender\u2019s interest in the property.<\/p>

Mortgage Indemnity Guarantee<\/strong>\u00a0\u2013 See Higher Lending Charge<\/p>

Mortgage Offer<\/strong>\u00a0\u2013 Sum of money that the lender offers to lend you to pay for a property.<\/p>

Mortgage Payment Protection Insurance (MPPI)<\/strong>\u00a0\u2013 This is insurance designed to pay your monthly mortgage payment for a limited period, usually a year, if you are unable to work through illness, accident or redundancy.<\/p>

Mortgage Term<\/strong>\u00a0\u2013 The length of time over which the mortgage is to be repaid. Often this is 25 years \u2013 but it can be shorter, or in some cases for longer periods of time.<\/p>

Multiple Agency<\/strong>\u00a0\u2013 This is when you employ the services of more than one agent. The agent that sells the property takes the whole fee. The downside is that fees will be higher and sometimes it can make your property look as if its difficult to sell when prospective buyers receive details from several sources. Additionally, buyers tend to be less confident as they are often concerned another buyer may appear.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Negative Equity<\/strong>\u00a0\u2013 When the value of the mortgage which is outstanding on the property, is more than the market value of the property.<\/p>

NHBC\u00a0<\/strong>\u2013 National House Building Council. A warranty scheme for new properties providing cover against major structural defects for 10 years.<\/p>

Non Resident Landlords\u00a0<\/strong>\u2013 If you live overseas and are not a UK tax payer you can apply to receive rent without tax being deducted. For more information and details on how to apply for the Non Resident Landlords (NRL) Scheme \u2013\u00a0click HERE<\/a><\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Office Copy Entries\u00a0<\/strong>\u2013 If the property has a registered title, the vendor\u00c2\u2019s solicitor will need to apply for office copy entries from the Land Registry before a draft contract can be prepared.<\/p>

Ombudsman<\/strong>\u00a0\u2013 An independent professional body which is set up by law to help settle individual disputes between consumers and firms, for example, estate agents, solicitors and insurance companies. There are now two ombudsman schemes.<\/p>

Outline Planning Permission<\/strong>\u00a0\u2013 This is planning consent which is subject to certain reserved matters, such as design, appearance\u00a0and\u00a0siting of proposed buildings.<\/p>

Overseas landlord<\/strong>\u00a0\u2013 A landlord who is resident overseas for more than six months in any tax year.\u00a0 Overseas landlords must apply for consent for their letting agent to pass on rental income without deducted for tax<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Portable Appliance Test (PAT)\u00a0<\/strong>\u2013 A test in the United Kingdom by which electrical appliances are routinely checked for safety. The correct term for the whole process is In-service Inspection & Testing of Electrical Equipment.<\/p>

Peppercorn Rent<\/strong>\u00a0\u2013 A nominal rent where the landlord does not receive an annual payment in cash. When the owner of land or property wishes to grant a lease, he must charge a rent as an acknowledgement of the existence of the lease. Where the owner does not want to charge any rent but simply wishes to establish the lease exists, he can ask for a peppercorn rent each year as a token payment.<\/p>

Planning Permission-<\/strong>\u00a0The permission granted by the local planning authority (usually the local council) for any new building or engineering operations or change of use of a building if it meets the public\u2019s interest.<\/p>

Premium<\/strong>\u00a0\u2013 The amount you pay regularly, monthly or annually, to an insurer for an insurance policy.<\/p>

Private Sale<\/strong>\u00a0\u2013 Sale of a property without the use of an estate agent.<\/p>

Product Fee<\/strong>\u00a0\u2013 There may be a fee involved when you apply for a mortgage. This is to reserve the mortgage and to cover administration costs. Also known as an arrangement fee.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Redemption Figure<\/strong>\u00a0\u2013 The amount required to discharge your outstanding mortgage at a fixed point in time. This will be the balance of your mortgage plus any early repayment fees or penalties which may apply.<\/p>

Remortgage<\/strong>\u00a0\u2013 The process of moving your mortgage without moving home. You take a new mortgage with a different lender to pay off your old mortgage.<\/p>

Rent To Rent\u00a0<\/strong>\u2013 Where a person rents a property and then sub-lets to others for a profit. Contractual arrangements may not protect parties involved and this should be avoided unless dealing with a professional, accredited agent.<\/p>

Repayment Mortgage<\/strong>\u00a0\u2013 Also known as a Capital and Interest mortgage. Your monthly payments pay off the interest and some of the capital borrowed. By the end of the term of your mortgage you will have paid off all your mortgage debt.<\/p>

Repayment Type\u00a0<\/strong>\u2013 How you pay back your mortgage. See Repayment Mortgage or Interest Only Mortgage.<\/p>

Retention<\/strong>\u00a0\u2013 Holding back part of a mortgage loan until any repairs to the property are satisfactorily completed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Share of Freehold<\/strong>\u00a0\u2013 Share of freehold means that when you buy a flat the lease on the property comes with a share of ownership of the building. Leaseholders in a block with several properties often choose to buy the freehold between them and so share of freehold gives them more control over the management of the property. It is important to remember that when purchasing a property with a share of free hold, the property is still a leasehold property.<\/p>

Sinking Fund<\/strong>\u00a0\u2013 When you buy a leasehold property, part of the service charge may be paid into a sinking fund. The sinking fund builds up over the years to cover future projects that may be needed to repair or improve the building. The freeholder or the property management company will be responsible for the service charge management and will notify leaseholders if part of the service charge will be paid into a sinking fund.<\/p>

Sold Subject to Contract (STC)<\/strong>\u00a0\u2013 This term refers to the fact an offer has been accepted by the vendor and that a sale is proceeding. It means the same as \u2018Under offer\u2019 or \u2018Sale agreed\u2019<\/p>

Sole Agency\u00a0<\/strong>\u2013 Where you employ the services of one agent to sell your property for an agreed period of time. should you sell your property through another agent before your agreement with the sole agent has ended, then you may have to pay the original agent their fee as well. Likewise, the agent must respect the terms of the agreement and ensure that the service promised and agreed is delivered. If other agents approach you during the term of a sole agency agreement, they must warn you of a possible liability to pay commission to more than one agent. Sole Agency fees are lower than where more than one agent is instructed.<\/p>

Sole Selling Rights<\/strong>\u00a0\u2013 This means that the appointed selling agent will be due the agreed fee, even if you end up selling your property privately or through another agent. This usually applies to development \/ land, new homes, auction and properties being sold by tender.<\/p>

Stamp Duty Land Tax<\/strong>\u00a0\u2013 A tax you must pay on a property when you buy it. The duty must be paid at the point of completion.<\/p>

Statutory Periodic Tenancy<\/strong> \u2013<\/p>

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Under the Renters\u2019 Rights Act, assured tenancies will become periodic tenancies by default, continuing on a rolling basis rather than for a fixed term. Tenants will generally be able to end the tenancy by giving at least two months\u2019 notice. Landlords will only be able to end a tenancy by relying on a valid statutory ground for possession and serving the required notice.<\/div><\/div><\/div><\/div><\/div>

Subject to Contract\u00a0<\/strong>\u2013 Words to indicate that an agreement is not yet legally binding.<\/p>

Settlement<\/strong>\u00a0\u2013 caused by the weight of a new building\/structure or part of it. Buildings are heavy things and, as their weight is taken up by the ground, a little movement caused by this adjustment sometimes occurs as the ground consolidates under the new load \u2013 this is settlement. It usually occurs early in the life of a building and rarely recurs, although, there are exceptions, for example, in soft clay soils. Settlement rarely causes problems, although differential settlement (differing degrees of settlement between connected parts of the same structure) can cause damage. Not to be confused with subsidence.<\/p>

Subsidence<\/strong>\u00a0\u2013 This results from external factors which cause the disruption, displacement, contraction or distortion of the ground under or around a building. Some of the more common causes include-<\/p>