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Glossary of Terms

  • Acceptance

    When you are offered and accept a mortgage offer from a lender this is what you need to sign and return.

  • Applicant

    The term used by an estate agent to refer to you when you are a potential buyer of a property.

  • APR

    Stands for "Annual Percentage Rate" relating to interest on a loan.

  • Appraisal

    When selling your house an estate agent will "appraise" your property to determine a current value for it.

  • Arrangement Fee

    Some lenders may ask for this fee for providing or "arranging" a loan.

  • Assignment

    The transfer of ownership from one person to another. For example if you buy a leasehold property ownership is "assigned" to you via the contract.

  • Base Rate

    This is the lowest rate of interest a bank will charge when it lends you money and is used as a replica watches benchmark to set interest rates for borrowers. This rate set by the Bank of England and is reviewed several times a year. Lenders will charge borrowers a margin above the base rate.

  • Bridging Finance/Loan

    You may need "Bridging Finance" if you are buying a new property before selling your current house. This is to "bridge" the gap before you have sold your property so as to complete the buying process of your new property before selling your replica watches existing home.

  • Broker

    This is a person who advises on mortgages and loans, known as a "mortgage broker".

  • Capped Rate

    The maximum set interest rate you will pay on a mortgage for a set period of time. This means that the interest rate cannot go higher than the capped rate during the specified time period, usually replica watches the first few years of the loan.

  • Chain

    This refers to a sequence of buyers and sellers. Most people who sell their homes are also buying at the same time. There can be a "chain" of several buyers and sellers, each dependent on each other for the sale and purchase of their new homes. If one buyer or seller drops out the whole chain may collapse, leading to a domino effect where the paperwork for several properties replica watches is delayed or cancelled altogether.

  • Chain Free

    This is when the owner of property doesnt need to sell the property in order to buy another, thus it is offered chain free.

  • Collateral

    Your house is "Collateral" when used as a guarantee you will repay a loan to your lender. If you do not keep up with repayment your house could be sold by the lender to get back the money they have loaned you.

  • Completion

    This is the final stage of the property buying process - when the agreed sale price has been paid by the buyer to the seller. Legal ownership has been transferred from the seller to the buyer of the property.

  • Contents Insurance

    This insurance is taken out to cover/protect personal belongings that are in your home.

  • Contract

    This is the agreement that once signed by the buyer and seller binds both parties to the sale and purchase of the property.

  • Conversion

    This can refer to a property that has had the loft converted into a room, or a house that has been converted into flats.

  • Conveyancing

    The name of the legal process that transfers property ownership from the seller to the buyer carried out by a solicitor.

  • Covenant

    A requirement by law on the owner of a property to either do or not do something with their property.

  • CAM

    Stands for Current Account Mortgage

  • CCJ

    This stands for County Court Judgement. If you have a judgement against you for defaulting on a debt it may mean you are turned down for future loans or pay a higher interest rate.

  • Default

    This is a term used when you do not do as you agreed, eg. failing to make a mortgage payment. If you fail to make mortgage payments (or default), your home could be repossessed.

  • Deposit

    In terms of mortgages a deposit is the initial lump sum payment the buyer contributes towards the total purchase price of the property.

  • Disbursements

    This is another word for the legal costs involved with purchasing a property.

  • Discounted Rate

    This type of mortgage has an interest rate lower than the lenders Standard Variable Rate (SVR).

  • EPC

    Energy performance certificate - part of a home information pack.

  • Early Repayment Charge

    This is a charge or "fee" payable if you pay part or all of your mortgage off earlier than agreed. This is used to compensate the lender for interest that would have been paid if the mortgage had replica watches run for the full time period agreed.

  • Equitable Interest

    When a person has some legal rights to a property but not including sale of the property.

  • Equity

    This is what you actually own - it is the difference between the market value of your property and the amount of the loan you still owe to the lender.

  • Exchange of Contracts

    This is the point at which the buyer and seller are legally bound to complete the sale.

  • Execution Only

    A service with no advice, just carry out the orders of a customer.

  • Fixed Rate Mortgage

    A mortgage which has a "fixed" rate of interest for a set period of time.

  • Fixtures and Fittings

    These are items in a house that are included in the sale. For example lighting fixtures, carpets and so on - these should be agreed / confirmed before a sale.

  • Flexible Mortgage

    As the name suggests this mortgage is flexible in terms of how you pay the loan back. An example could be that it allows you to make overpayments or pay off your mortgage early.

  • Freehold

    Complete ownership of a piece of land and the property that is on it.

  • Gazumping

    This is when a vendor (seller) accepts an offer but later rejects it to accept a higher offer by another buyer.

  • Gazundering

    This is the opposite of gazumping - when the buyer threatens to pull out just before the exchange of contracts if the price is not reduced.

  • Gearing

    Using loaned funds to progress investments. For example, buying a house with a small deposit and the rest with a mortgage and then selling the property on at a higher price, making a profit.

  • Ground Rent

    This is rent paid annually by the leaseholder of a property to the owner of the freehold. Usually it is paid to the owners replica watches of the land on which the property/properties are built.

  • Guarantor

    A person who agrees to guarantee that they will pay a debt or loan if you default on payment. Home Information Pack ( HIP ) Also known as a Sellers Pack or HIP this will be a mandatory Survey from the 1st of August 2007 to be produced by a home owner ( 4 bedrooms or more ) or selling agents via a home inspector before a property can be put on the open market. The aim is to help improve the process of buying and selling a home, it is part of the conveyancing process and will include detailed information about a property.

  • IFA

    Independent Financial Adviser

  • Instruction

    This is when you give an estate agent 'Instructions' or the right to sell or let your property.

  • Joint / Multiple Agency

    This is when you instruct more than one estate agent to market your property.

  • Land Certificate

    The certificate that proves ownership of land issued by the land registry.

  • Land Registry

    A government office that stores records of land ownership and any charges like a mortgage.

  • Lease

    A legal document detailing an agreement made between a freeholder and those occupying their property for a specified period of time. It lists all the conditions which the leaseholder must abide by and what the landlord's responsibilities are.

  • Leasehold

    Land or property is 'leasehold' when the owner has to pay the freeholder an annual sum of money.

  • Lender

    A person or company that lends money for an agreed time period. They expect to have the money repaid back with interest added - your mortgage company is a lender.

  • LTV

    Loan To Value.

  • Maintenance Charge

    A landlord charges for the annual maintenance of a property which should be agreed in your contract. This includes keeping the outside of the property in good order and gardening services in communal areas.

  • MIG

    Mortgage Indemnity Guarantee - an insurance premium some lenders may need you to take out on certain mortgages.

  • Mortgage

    Money borrowed from a lender to buy a property. The borrower agrees to use his or her property as security against it until the loan is paid back.

  • Mortgage Deed

    A document which has the details of a mortgage arrangement.

  • Mortgage Offer

    An offer from a lender which details the terms and conditions of a loan.

  • Mortgagor

    The individual who is borrowing money for the purpose of buying a property.

  • Negative Equity

    When you owe more than the market value of your property, or have paid or are paying back more than a property is worth.

  • Offer

    An offer, usually below the asking price, you make on a property.

  • OMV

    Open Market Value - the value a property can achieve when there is a willing buyer and seller.

  • Redemption

    This is the moment when you pay off your mortgage

  • Registered Land

    Land including any property on it that is registered with the land registry.

  • Right Of Way

    The legal access to a piece of property so as to access your own property.

  • ROI

    Return On Investment - how much you get out of what you put in.

  • Searches

    The process of finding out if there are any unwanted effects now or planned for the future on a property.

  • Sellers Pack

    Also known as a HIP or home information pack - includes and EPC ( energy performance certificate ) advice on reducing carbon emissions and fuel bills.

  • Sole Agency

    When a single (sole) estate agent has been given the right to sell or let a property.

  • Stamp Duty

    Tax paid to the government on the purchase price of property.

  • Subject To Contract

    The point at which both parties are free to pull out of an agreement before exchange of contracts.

  • Survey

    A survey is the report produced by a building surveyor for the purpose of determining the value of the property and if it is structurally sound.

  • Tenant

    A person or persons (can be a company or organisation) who is entitled to occupy a property under the terms and conditions of a tenancy agreement.

  • Tenure

    The type of ownership of a property such as Freehold or Leasehold.

  • Title

    The legal right to ownership of a property.

  • Title Deeds

    A Document that shows ownership of a property.

  • Under Offer

    When a property has had an offer accepted but contracts have not been exchanged.

  • Valuation

    A service by an estate agent or independent expert to determine the value of a property in the current market.

  • Vendor

    The person who is selling a property.