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A Glossary of Property Terms You Need to Know

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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.

Agreement

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.

Arrangement Fee

A fee charged by some lenders to cover the administration of arranging a loan.

Arrears

Amount overdue a mortgage.

Asking Price

The desired outcome for the seller.

Bridging Loan

A short-term loan that allows the acquisition of a property before the sale of another.

Buyer

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.

Capital

Loaned amount on which interest is calculated.

Collateral

Property given up as collateral for the mortgage’s repayment.

Completion

The legal transfer between two properties.

Contract

A document outlining the terms agreed between the parties involved.

Deed

A trial of documents that proves the ownership of a property.

Deposit

The agreed amount paid by the buyer to the seller to secure the property.

Deed

Legal documents proving ownership of a property. Also known as Title Deeds.

Equity

The owner’s financial interest in a property.

Estate Agent

Real estate expert who represents sellers in the marketing of their property and charges a fee.

Excess

Fixed upfront payment required of the insured party.

Exchange of Contracts

When at signed contracts are physically exchanged with both parties.

Freehold

Possession of a property and the land it’s built on.

Ground Rent

Yearly payment made by the leaseholder to the freeholder.

Guarantor

A person in charge of paying back the loan if the borrower defaults.

Homebuyer’s Report

Standard report prepared by a surveyor for a buyer to evaluate the worth and condition of a property.

Insurance

Protection and a way to manage your risk.

Interest Only Mortgage

Mortgage in which just the interest is paid up front.

Land Registry

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.

Lease Agreement

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.

Leasehold

A lease granting a party the ownership and temporary occupancy of a property in exchange for a yearly rent payment.

Lender

Institution that lends funds to help the borrower with a property purchase.

Maintenance Charge

Charges made by a landlord to a tenant or a leaseholder to pay for property upkeep expenses.

Mortgage

Long-term loan used to fund the purchase of a property where the property is held as security.

Mortgage Deed

A document outlining the terms of a loan to buy a property.

Mortgage Term

The amount of time that a mortgage will be paid.

Mortgage Valuation

Report ordered by the lender to determine the maximum amount that can be financed.

Offer

A declaration of intent from a prospective buyer to acquire a property at the stated price.

Repayment Mortgage

Repayments and interest made on a monthly basis to contribute in paying off your mortgage.

Retention

Amount held back by a lender until certain specified works have been completed.

Service Charge

Charges made by the property to a tenant, leaseholder, or property owner.

Valuation

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.

Vendor

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!

If you have further questions, why not join the Assets For Life Community Facebook Group where you can connect with likeminded individuals and get support.

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