Assess: In a building restoration project, workers are responsible for removing lead-based paint from door frames and window sills. The assessment phase involves identifying tasks that may expose workers to lead, such as sanding or scraping paint layers. Given the...
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Jargon Busters
Navigating the property industry can feel like wading through a maze of jargon. But fear not, we’re here to guide you through it. Whether you’re searching for the meaning of a term on the tip of your tongue or eager to expand your knowledge, our jargon busters are here to help you learn a thing or two.
| Jargon | Busted |
|---|---|
| Land Registry | The government department responsible for maintaining records of land ownership and property transactions. |
| Stamp Duty | A tax levied on property transactions, with rates varying based on the purchase price and property type. |
| Landlord | The owner of a property who leases it to tenants in exchange for rent. |
| Tenant | An individual or business entity that occupies a property under a lease agreement with the landlord. |
| Freehold | Ownership of both the land and the building on it, with no time limit. |
| Leasehold | Ownership of a property for a fixed period, typically subject to payment of ground rent to the freeholder. |
| Ground Rent | An annual fee paid by a leaseholder to the freeholder for the use of the land on which the property is built. |
| Service Charge | A fee paid by leaseholders to cover the cost of maintaining and managing communal areas in a property. |
| Conveyancing | The legal process of transferring ownership of a property from seller to buyer. |
| EPC (Energy Performance Certificate) | A certificate that rates the energy efficiency of a property, required by law for most property sales and rentals. |
| Chain | A sequence of property transactions linked by the fact that each depends on the preceding and succeeding ones. |
| Gazumping | When a seller accepts a higher offer from another buyer after already agreeing to sell to someone else. |
| Gazundering | When a buyer lowers their offer just before the exchange of contracts, putting pressure on the seller to accept. |
| Lease Extension | The process by which a leaseholder extends the length of their lease, usually to avoid the property losing value as the lease term decreases. |
| Ground Lease | A long-term lease of land, often used in commercial property transactions. |
| Break Clause | A clause in a lease allowing either the landlord or tenant to terminate the lease early under certain conditions. |
| Section 21 Notice | A legal notice served by a landlord to end an assured shorthold tenancy (AST) without providing a reason. |
| Section 8 Notice | A legal notice served by a landlord to evict a tenant for breaching the terms of the tenancy agreement. |
| Right to Buy | A government scheme allowing council tenants to purchase their rented property at a discount. |
| Shared Ownership | A scheme where buyers purchase a share of a property and pay rent on the remaining share. |
| Help to Buy | A government scheme aimed at helping first-time buyers get onto the property ladder by providing equity loans. |
| LTV (Loan-to-Value) Ratio | The ratio of a mortgage loan amount to the appraised value or purchase price of a property. |
| Mortgage Offer | A formal offer from a lender to provide a mortgage loan, subject to conditions being met. |
| APR (Annual Percentage Rate) | The total cost of borrowing, expressed as a percentage of the loan amount, including interest and fees. |
| Repayment Mortgage | A mortgage where both the interest and the capital are repaid each month, ensuring the loan is fully repaid by the end of the term. |
| Interest-Only Mortgage | A mortgage where only the interest is paid monthly, with the capital amount repaid at the end of the term. |
| Remortgage | The process of switching a mortgage from one lender to another or changing the terms of an existing mortgage. |
| Standard Variable Rate (SVR) | The default interest rate charged by a lender once a fixed or discounted rate mortgage deal ends. |
| Fixed-Rate Mortgage | A mortgage where the interest rate remains fixed for a specified period, providing certainty of repayments. |
| Tracker Mortgage | A mortgage where the interest rate tracks the Bank of England's base rate, typically with a fixed margin. |
| Equity Release | A financial product allowing homeowners to release equity tied up in their property, usually in retirement. |
| Bridging Loan | A short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. |
| Buy-to-Let Mortgage | A mortgage specifically designed for purchasing properties to rent out. |
| HMO (House in Multiple Occupation) | A property rented out to three or more unrelated tenants who share facilities. |
| Yield | The return on investment generated by a property, expressed as a percentage of its value. |
| Rental Yield | The annual rental income generated by a property, expressed as a percentage of its value. |
| Gross Yield | The rental income generated by a property before deducting expenses, expressed as a percentage of its value. |
| Net Yield | The rental income generated by a property after deducting expenses, expressed as a percentage of its value. |
| Yield Compression | The reduction in rental yield due to increasing property prices, leading to lower returns for investors. |
| Void Period | The time during which a rental property is unoccupied and not generating rental income. |
| Yield Curve | A graphical representation of the relationship between the yield on bonds of the same credit quality but different maturities. |
| Buy-to-Sell | A property investment strategy involving purchasing properties with the intention of selling them for a profit. |
| Buy-to-Let Investor | An individual or entity that purchases properties with the primary aim of renting them out for income. |
| Off-Plan | The purchase of a property before it has been built or completed. |
| New-Build | A property that has recently been constructed or is under construction. |
| Listed Building | A property that is included on a statutory list of buildings of special architectural or historic interest. |
| Conservation Area | An area designated by the local planning authority as being of special architectural or historic interest. |
| Permitted Development | Development that can be undertaken without the need for planning permission, subject to certain conditions. |
| Land Banking | The practice of acquiring and holding land with the aim of selling it at a profit in the future. |
| Brownfield Site | Land that has been previously developed but is not currently in use or is derelict. |
| Greenfield Site | Land that has not been previously developed or built on. |
| Right of Way | The legal right to pass over someone else's land, typically granted by an easement. |
| Covenant | A legal obligation or restriction relating to the use or development of land or property. |
| Right of First Refusal | The legal right of a tenant to be offered the opportunity to purchase a property before it is sold to another party. |
| Enfranchisement | The process by which leaseholders can acquire the freehold of their property. |
| Listed Building | A property that is included on a statutory list of buildings of special architectural or historic interest. |
| Conservation Area | An area designated by the local planning authority as being of special architectural or historic interest. |
| Permitted Development | Development that can be undertaken without the need for planning permission, subject to certain conditions. |
| Land Banking | The practice of acquiring and holding land with the aim of selling it at a profit in the future. |
| Brownfield Site | Land that has been previously developed but is not currently in use or is derelict. |
| Greenfield Site | Land that has not been previously developed or built on. |
| Right of Way | The legal right to pass over someone else's land, typically granted by an easement. |
| Covenant | A legal obligation or restriction relating to the use or development of land or property. |
| Right of First Refusal | The legal right of a tenant to be offered the opportunity to purchase a property before it is sold to another party. |
| Enfranchisement | The process by which leaseholders can acquire the freehold of their property. |
| Leasehold Reform | Legislation aimed at reforming leasehold laws to provide greater rights and protections for leaseholders. |
| Lender's Valuation | A valuation of a property carried out by a mortgage lender to assess its suitability as security for a loan. |
| RICS (Royal Institution of Chartered Surveyors) | A professional body that regulates property professionals and sets standards for property valuation and management. |
| Capital Growth | The increase in the value of a property over time, also known as appreciation. |
| Chain-Free | A property that is not part of a property chain, typically resulting in a quicker and smoother transaction. |
| Negative Equity | When the outstanding balance on a mortgage loan exceeds the value of the property securing it. |
| Property Developer | An individual or company that purchases land or property with the intention of developing it for profit. |
| Conveyancer | A solicitor or licensed conveyancer who handles the legal aspects of buying or selling a property. |
| Completion Date | The date on which the sale of a property is finalized, and ownership is transferred to the buyer. |
| Lease Term | The length of time for which a lease is granted, typically expressed in years or months. |
| Surrender | The voluntary termination of a lease agreement by mutual agreement between the landlord and tenant. |
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