Property Terms

Whether you're a seasoned investor or a first-time buyer, our glossary helps you to navigate the world of property with confidence.

C
Closing Costs
Closing costs, an essential aspect of buying or selling property in the UK, comprise various fees and charges incurred at the end of a real estate transaction. Understanding these costs is crucial for both buyers and sellers to budget effectively and ensure a smooth property transfer.
CMA (Comparative Market Analysis)
Comparative Market Analysis (CMA) is a cornerstone in the UK property market, enabling buyers, sellers, and real estate professionals to assess property values accurately. This analysis compares similar properties in a specific area to determine a property's market value, guiding informed buying or selling decisions.
Common Law Tenancy
A common law tenancy is a rental agreement in the UK property market, typically used when the standard assured shorthold tenancy (AST) conditions do not apply. It offers flexibility but requires a clear understanding of rights and obligations.
Completion
"Completion" in real estate refers to the final stage of a property transaction where the legal transfer of property from seller to buyer is finalized, ownership changes hands, and the keys are handed over. This milestone is the culmination of negotiations, agreements, and legal processes, marking the official ownership transfer.
Completion Fees
Completion fees in the property market refer to the charges and expenses incurred at the final stage of a property transaction. These fees cover the legal, administrative, and financial processes required to formally complete the purchase or sale of a property, transferring ownership from the seller to the buyer.
Contingency
In the UK property market, a contingency is a condition specified in the purchase agreement that must be met for the transaction to proceed. These conditions offer protection for both buyers and sellers, ensuring that certain criteria, such as financing approval or satisfactory property inspections, are fulfilled before the sale is finalised.
Conveyancing
Conveyancing is the legal process of transferring property ownership from one party to another. It involves managing the legal and administrative tasks necessary to ensure a property sale is valid under law, from the acceptance of an offer to the finalization of the sale.
Council Tax
Council tax is a local taxation system in the UK, charged on domestic properties to fund local authority services. It is a crucial consideration for anyone owning, renting, or investing in property, as it impacts monthly housing costs and budget planning.
Counter Offer
A counter offer in the UK property market is a critical negotiation tool, often used when an initial offer on a property is not accepted. This process allows both buyers and sellers to negotiate terms, including price, that are more agreeable, facilitating a potential agreement that benefits both parties.
E
Early Repayment Charges
Early repayment charges (ERCs) are fees that may be charged by a lender if a borrower pays off their mortgage before the end of the agreed term. These charges are designed to compensate the lender for the interest they lose due to the early repayment.
Earnest Money
Earnest money is a deposit made by a buyer to a seller, representing a buyer's good faith in a real estate transaction. This upfront payment is part of the purchasing process, held in an escrow account, and typically applied to the down payment or closing costs upon completion of the sale.
Energy Performance Certificate (EPC)
An Energy Performance Certificate (EPC) is a document that provides an overview of the energy efficiency of a property. It rates the property on a scale from A (most efficient) to G (least efficient) and includes recommendations for improving energy savings.
Equity
In the property market, equity refers to the financial interest or value that an owner has in a property. It is calculated as the difference between the property's current market value and the amount owed on any mortgages or loans against it. Equity can increase over time as the property value appreciates or as the owner pays down the mortgage.
Escrow
Escrow is a financial arrangement in the property market where a third party holds and regulates the payment of the funds required for two parties involved in a given transaction. It ensures the transaction is executed fairly and according to the agreed terms, providing security for both buyer and seller.
Estate Agent
An estate agent is a professional involved in the buying, selling, leasing, or renting of properties and land within the property market. They act as intermediaries between sellers and buyers or landlords and tenants, providing expertise and guidance throughout the transaction process.
Exchange of Contracts
In the property market, the exchange of contracts is a critical legal step where the buyer and seller of a property formally agree to the transaction terms and commit to the sale, making it legally binding. This process ensures both parties are legally obligated to complete the transaction.
H
Help To Buy
Help to Buy is a government-backed initiative designed to assist first-time homebuyers and existing homeowners in purchasing a property with as little as a 5% deposit. The scheme offers equity loans and other financial support to make homeownership more accessible in the property market.
Home Appraisal
In the UK property market, a home appraisal is a professional evaluation of a property's value conducted by a certified appraiser. This assessment is vital for buyers, sellers, and lenders to determine the fair market value of a property, influencing lending decisions and transaction prices.
Home Inspection
In the UK property market, a home inspection is a critical evaluation of a property's condition conducted by a professional inspector. This process helps buyers identify any potential issues or defects that could impact the property's value or safety before finalising a purchase.
Homebuyers Report
A Home Buyers Report is a comprehensive survey designed to provide potential property buyers in the UK with crucial information about the condition of a home before purchasing. It highlights any major issues that could affect the property's value or require costly repairs.
House Insurance
House insurance is a critical safeguard for homeowners in the UK, offering financial protection against damage, theft, and other risks. It encompasses buildings insurance, contents insurance, or a combination of both, ensuring peace of mind for property owners.
Housing Multiple Occupants (HMO)
Housing Multiple Occupants (HMO), often referred to as a "house in multiple occupation," is a type of rental property where three or more tenants not belonging to the same household share amenities such as a bathroom and kitchen. HMOs are subject to specific regulations to ensure safety and standards.
L
Land Registry
The Land Registry is a government department responsible for maintaining a detailed and comprehensive registry of land and property ownership in the UK. It provides a public record of land ownership, rights, and interests.
Landlord
In the property market, a landlord is an individual or entity that owns and rents out real estate, such as apartments, houses, or commercial properties, to tenants. Landlords are responsible for maintaining the property, ensuring it's safe and habitable, and adhering to relevant laws and regulations.
Lease Agreement
A lease agreement in the UK property market is a legally binding contract between a landlord and a tenant, outlining the terms under which the tenant can occupy the property. It specifies rent, lease duration, and tenant and landlord obligations, ensuring clarity and protection for both parties.
Leasehold
Leasehold is a property tenure where the buyer owns the property and its land for a fixed term but not the land it stands on permanently. At the end of the lease term, ownership reverts back to the freeholder or landlord, unless the lease is extended.
Listing
In the UK property market, a "listing" refers to the advertisement of a property available for sale or rent. It includes essential details like price, location, property features, and photographs, serving as the first interaction potential buyers or tenants have with a property.
Loan to Value Ratio
Loan to Value (LTV) ratio is a critical financial metric in the property market, representing the proportion of a property's value that is financed through a mortgage loan. Expressed as a percentage, LTV is calculated by dividing the loan amount by the property's appraised value or purchase price, whichever is lower.
P
Pre-Approval
Pre-approval in the UK property market is a preliminary step in the home buying process where a lender assesses a potential buyer's financial situation to determine how much they can borrow. It provides an estimate of the mortgage amount one is eligible for, giving buyers a competitive edge when house hunting.
Proof of Funds
Proof of funds (POF) in the property market is a document or set of documents that demonstrate a home buyer's ability to afford a property purchase. This evidence is typically required by sellers and estate agents to confirm that the buyer has sufficient funds to complete the transaction.
Property Chain
A property chain involves a series of linked real estate transactions, where one or both of the buyer and seller are also involved in another transaction happening alongside the current transaction.
Property Ladder
The "property ladder" is a commonly used metaphor in the property market to describe the progression of homeownership from purchasing an initial property to successively buying larger or more valuable properties over time. Climbing the property ladder is often seen as a way to build wealth and improve living standards.
Property Management
Property management involves the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and land real estate. Property managers act on behalf of the owner to preserve the property's value while generating income.
Proptech
Proptech, short for property technology, refers to the use of technology to innovate and improve services in the property industry. This emerging sector within the UK property market encompasses a wide range of digital applications, from online property listings and virtual tours to advanced data analytics and smart home technologies.
Purchase Agreement
A purchase agreement in the property market is a legally binding contract between a buyer and seller outlining the terms and conditions of a property transaction. It specifies details such as the purchase price, closing date, contingencies, and any other conditions both parties must meet before the sale is finalised.
S
Seller's Disclosure
Seller's disclosure in the UK property market refers to the process whereby sellers provide potential buyers with important information about the property's condition, including any defects or issues, before a sale is completed.
Seller's Market
A seller's market occurs in the UK property market when demand exceeds supply, giving sellers the upper hand in negotiations and often leading to higher property prices and quicker sales.
Semi-Detached House
A semi-detached house is a single-family home that shares one common wall with another house. It combines elements of detached and attached housing, offering a balance between privacy and community living. This type of property is popular in various markets for its blend of affordability and personal space.
Service Charge
A service charge in the property market refers to a fee paid by tenants or property owners to cover the cost of maintaining and repairing shared spaces and services in a building or complex. This charge ensures the proper upkeep of communal areas and facilities, contributing to the overall liveability and value of the property.
Shared Ownership
Shared ownership is a part-buy, part-rent scheme designed to help first-time buyers and those who do not currently own a home afford a property. It allows purchasers to buy a share of a property and pay rent on the remaining share, making homeownership more accessible.
Sold Subject To Contract (SSTC)
Sold Subject to Contract (SSTC) is a term used in the property market to indicate that an offer on a property has been accepted by the seller, but the legal process to transfer ownership has not yet been completed. This stage is crucial as it signifies a mutual agreement to proceed, although the sale is not legally binding until contracts are exchanged.
Staging
Staging is a strategic marketing tool used in the UK property market to present a home in its best light. By carefully arranging furniture, décor, and renovations, sellers can create an appealing atmosphere that highlights the property's strengths, potentially speeding up the sale and increasing the final sale price.
Stamp Duty
Stamp Duty, officially known as Stamp Duty Land Tax (SDLT) in the UK, is a tax paid on the purchase of properties or land over a certain price. The rate varies based on the purchase price, property type, and buyer's circumstances.
Stamp Duty Relief
Stamp duty relief offers potential savings on stamp duty land tax for certain buyers in the UK property market, including first-time buyers and those purchasing properties below specific price thresholds.
Survey
In the UK property market, a survey is a detailed examination of a property's condition conducted by a qualified surveyor. It is crucial for buyers to understand a property's state, identify any potential issues, and make informed decisions.
T
Tenant
In the property market, a tenant is an individual or entity who rents or leases property from a landlord or owner for a specified period under agreed-upon terms. Tenants have the right to use and occupy rental property as long as they comply with the terms of their lease agreement.
Terraced House
A terraced house, also known as a row house or townhouse in some regions, is a style of medium-density housing where each house is attached to its neighbours on both sides by shared walls. Characterised by their uniform appearance, terraced houses are a common sight in urban areas, offering efficient use of space and community living.
Title Deed
A title deed is a legal document that proves ownership of a property. It contains detailed information about the property, including its description, the owner's name, and any rights or covenants affecting the property. Title deeds are essential in the property market for verifying ownership and facilitating property transactions.
Title Search
A title search is a critical process in the UK property market, involving the examination of public records to confirm a property's legal ownership, identify any encumbrances, and ensure a smooth transfer of ownership.
Townhouse
A townhouse is a multi-floor home that shares one or more walls with adjacent properties but has its own separate entrance. Townhouses are similar to terraced houses in that they usually are located in rows of similar designed houses. A main distinction is that a town house is usually over three floors maximising the footprint of the home but still having enough living space for families.
Tracker Mortgage
A tracker mortgage is a type of variable rate mortgage where the interest rate automatically adjusts and tracks a nominated benchmark, typically the Bank of England's base rate, plus a set margin. This means monthly payments can vary over the term of the loan.

Moove is a new way to buy and sell property, coming soon. Register your interest for the future of real estate, and be the first to be contacted when we launch.

© Moove House Limited 2024. All Rights Reserved

hello@moove.house