A Glossary of Property Terms You Need to Know
Are you new to the world of property? If so, we will be sharing a glossary of property terms you need to know in today’s blog post.
Additional Security Fee
Fee provided by lenders to protect them against loss.
A contract binding both parties to complete the sale or purchase details the terms agreed upon by the buyer and seller. Additional name: Contract
Annual Percentage Rate (APR)
An annual interest rate that represents the total cost of a loan.
A fee charged by some lenders to cover the administration of arranging a loan.
Amount overdue a mortgage.
The desired outcome for the seller.
A short-term loan that allows the acquisition of a property before the sale of another.
A person who is buying a property.
Buy to Let Mortgage
Mortgage made specifically for purchasing real estate that would be rented out to tenants.
Loaned amount on which interest is calculated.
Property given up as collateral for the mortgage’s repayment.
The legal transfer between two properties.
A document outlining the terms agreed between the parties involved.
A trial of documents that proves the ownership of a property.
The agreed amount paid by the buyer to the seller to secure the property.
Legal documents proving ownership of a property. Also known as Title Deeds.
The owner’s financial interest in a property.
Real estate expert who represents sellers in the marketing of their property and charges a fee.
Fixed upfront payment required of the insured party.
Exchange of Contracts
When at signed contracts are physically exchanged with both parties.
Possession of a property and the land it’s built on.
Yearly payment made by the leaseholder to the freeholder.
A person in charge of paying back the loan if the borrower defaults.
Standard report prepared by a surveyor for a buyer to evaluate the worth and condition of a property.
Protection and a way to manage your risk.
Interest Only Mortgage
Mortgage in which just the interest is paid up front.
Land ownership in England and Wales recorded by a government agency.
Land Registry Fees
A set charge paid to the Land Registry to register property ownership.
A legal document outlining the conditions under which the owner of a property permits another party the right to occupy it for a predetermined amount of time.
A lease granting a party the ownership and temporary occupancy of a property in exchange for a yearly rent payment.
Institution that lends funds to help the borrower with a property purchase.
Charges made by a landlord to a tenant or a leaseholder to pay for property upkeep expenses.
Long-term loan used to fund the purchase of a property where the property is held as security.
A document outlining the terms of a loan to buy a property.
The amount of time that a mortgage will be paid.
Report ordered by the lender to determine the maximum amount that can be financed.
A declaration of intent from a prospective buyer to acquire a property at the stated price.
Repayments and interest made on a monthly basis to contribute in paying off your mortgage.
Amount held back by a lender until certain specified works have been completed.
Charges made by the property to a tenant, leaseholder, or property owner.
A survey is undertaken by a certified professional to determine an estimate of the current market worth of a property.
Variable Base Rate
A mortgage’s base interest rate, which is subject to market fluctuations.
A person selling a piece of real estate.
If you are just starting out on your property journey, make sure you save this to refer back to!
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