Quick Sales Glossary
Below a useful glossary of commonly used property-, leagal and industry terms when considering quick sales, being repossessed or thinking about sell and rent back options.
All terms are listed in alphabetic order:
Acknowledgement of service
This is one of the first steps in the divorce procedure
Administration
Court based procedure which in some cases is prior to bankruptcy
APR - Annual Percentage Rate
Mortgage lenders take into account the upfront and ongoing costs involved in a mortgage. Please not don't rely on this because some lender work this out differently
Area we only locals can buy
Some areas have a law where only people who have lived in the area for xxxx time period can buy
Arrangement fee
In the mortgage world, this is a fee that you are require to pay the mortgage company upfront. In some cases you are able to add this to your loan
Assured shorthold tenancy
The Assured Shorthold Tenancy is the default tenancy for most properties in England and Wales. It is a form of Assured tenancy with limited security of tenure, and an important class of residential tenancy in England and Wales. It was introduced by the Housing Act 1988, with important changes made by the Housing Act 1996.
Assured tenancy
An assured tenancy is a form of residential tenancy in England and Wales that grants a degree of security of tenure to the tenant. A tenant under a assured tenancy may not be evicted without reason and the rent under the assured tenancy will often fall under the supervision of a rent assessment committee.
Bad credit
Means exactly that, BAD CREDIT. Officially means a poor credit rating. Bad Credit comes about from making late payments, missing payments, exceeding card limits, being repossessed or filing for bankruptcy.
Bankruptcy
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization).
Bankruptcy register
This register is a list of all people who are or have been made bankrupt
Beneficiary
The recipient of funds or other benefits from a deceased person
Boundary disputes
Disputes over land that is owned by two separate people. i.e. someone may erect a new fence and move it over slightly therefore causing a dispute over the boundary
Building regulations
Legislation detailing the methods and requirements for the construction of buildings, taking into account health and safety issues
Buildings contingency policy
Commonly used for flats and leasehold properties where there is more than one dwelling in the building and the other leasee buildings insurance is not available or inadequate.
Buildings insurance
Building insurance is taken out to cover the cost of having to rebuild or repair the building. Mortgage lenders insist that you have this before they would be willing to lender you the money.
Call Center
A large organisation which is set up to take calls on behalf of a company. They are given a script and will not/can not speak about anything other within that script.
Capital and interest
Commonly known as a repayment mortgage, this is where you pay not only the interest but you also repay the loan itself
Capped rate
A ceiling limit is set where you mortgage interest rate can not got above, generally associated with variable mortgages
Cashback
Incentives set up my companies to entice you to use there company. This will either be a fixed rate or a percentage
Charges against a property
Where someone or a creditor places a legal charge on the property to ensure that when the property is sold they are notified so they can claim their rights (generally monies)
Check in report
Usually done by a letting agent or a landlord to report the condition of a property when a new tenant is moving in.
Check out report
Usually done by a letting agent or a landlord to report the condition of a property when a tenant is moving out, the check out report is checked against the check in report.
CML Council of Mortgage Lenders
Trade organisation set up for banks, building societies and other lenders
Completion
Where you become the legal owner of a property after the sale and purchase are finalised
Contents insurance
Insurance covering your personal possessions within your home. Policies may include damage of theft
Contracts
This is a legal document which is signed. In the property industry you would sign the solicitors contract enabling you to become an owner of a property.
Conveyancing
The legal process involved in buying and selling property.
Corgi Certificates
Is a document produced by Corgi registered gas fitter for all gas appliances in a property when either the property is rented out or when new appliances are fitted to declare they safe to use.
County Court Judgement (CCJ)
County Court Judgements (CCJ's) is a type of action taken by the county court against a person who has failed to pay an outstanding debt. These remain on file for six years, or until the individual satisfies the debt by paying in full.
Covenants
Restrictions place on a property/land restricting what alterations you can make
Credit scoring
The way in which lenders assess whether you meet their criteria enabling them to lend you money
Credit search
A search which is carried out to ascertain what credit you currently have and whether you have any late or non-payments
Custody
A covenant, in its most general sense, is a solemn promise to engage in or refrain from a specified action.
Decree absolute
The official decree marking the legal end of a marriage, allowing the two people to remarry; it follows the decree nisi after six weeks (in Britain)
Decree nisi
In England and Wales, the provisional order of divorce. Not final until further application by petitioner (after at least 6 weeks from decree nisi) and decree absolute is granted.
Deposit
A sum of money which is given to secure the purchase of an item. i.e. you would give your deposit to your solicitor, prior to exchanging contracts, to secure a purchase of a property
Disbursements
Fees which you have to pay your solicitor for the work they has carried out and the costs they have incurred. i.e. telephone, faxing, land registry fees
Disclose problems with neighbours
This is a must when you are selling, especially if you have reported them to the council or police, because this will come up in searches done by solicitors
Discounted rate
This is a rate of interest set below the current base rate. Generally only for a set period of time
Disputes
Argument between 2 or more people. When selling your property you must disclose if you have report any disputes with neighbours
Divorce
The legal act of ending a marriage
Divorce procedure
The legal process involved when going through a divorce
Down valuation
This is where a surveyor values a property which is being brought at a price and they value the property at less. this can result in negative equity and house repossession.
Early redemption charges
When you pay back or change to a different lender you can be liable for a penalty if you are within their tie in period
Endowment
A type of insurance policy which was set up to pay off an interest only mortgage at the end of the term.
Environmental search
This is a search which solicitor apply for during the purchase of a property. This search reveals vital information such as contaminated land.
EPC energy performance certificates
Certificates which highlight how much energy your property is using and suggestions on how to improve you energy performance.
Equity
The profit in a property after a mortgage is cleared.
Equity release
An existing mortgage can be extended or a new mortgage can be taken out to release some of the equity within a property for any reason i.e. new car, home improvements, etc, etc
Estate agency fees
A fee which is generally paid to an estate agent after the completion of a sale for securing a purchaser and advertisement costs
Evict a tenant
A landlord wants to remove their current tenant from the property generally via the courts and eviction notices. This could be for a variety of reasons such as non payment of rent.
Eviction notice
A notice which is given to a home owner from the courts confirming a date and time where they have to vacate their property due to non payment of their mortgage or rent. Eviction notices should be avoided by any means.
Exchange of contracts
The point at where the sale and purchase of a property/land becomes legally binding. If either party withdraws after this point they are liable to be sewed for 10% of the property value.
Executor
An individual who is nominated in a legal will to carry out the instructions of the will for the benefit of its beneficiaries
Fair rents office (the rent service)
This is a government run organisation to provide fair rents for landlords and tenants. This is generally only used when sitting tenants are in place
Fensa certificates
The Fenestration Self Assessment Scheme (FENSA). Fensa certificates have to be given to a homeowner when new glazing is installed to a property. This became law in April 2004.
Financial advisor
An adviser who is a professional who renders investment advice and financial planning services to individuals and businesses. They provide services to include mortgages, insurances, etc, etc
Financial service agency (FSA)
This is the governing body the financial industry in the UK
Fire and furnishing act
Also knows as section 11 was brought in place to landlords to protect tenants from highly flammable furnishings. The act clearly states that 'no person shall supply any furniture or other article in respect of which requirements of these regulations is not satisfied'.
Fixed rate
Set amount of interest which will be charged for an agreed period, generally associated to mortgages and loans
Fixtures & Fittings
Items in a property which are attached in a property. Fixtures must remain in the property and fitting may be taken (if electrical or plumbing fittings are taken they must be replaced)
Flexible mortgage
A type of mortgage which was set up to enable people to make over payments or under payments if the wanted to.
Freehold
You own the property as well as the land it is built on.
Freehold sale
You own a freehold and sell this on, therefore making the property which is on the land a leasehold property
Freeholder
You own the land where a property/properties are built on and you are paid a yearly rent
Gas safety inspection
This is carried out by a corgi registered engineer to ensure that all gas appliances are safe to use and are not leaking. All tenanted properties require a gas safety inspection
Gazumping
This is where a seller can agree an offer to one person and at a later date accept another offer from someone different. Not good if you need to sell property quickly but this happens all the time, but must be before exchange of contracts.
Gazundering
This is where a seller can agree an offer to one person and at a later date accept another offer from someone different, but that person then offers a lower amount just before exchange of contracts.
Government deposit schemes
Schemes that are set up by the government aiding people to purchase properties
Ground rent
A leaseholder has to pay a yearly charge, which is set in their lease, to the freeholder
HM Land Registry
The records of all properties in England and Wales, are kept at this organisation, confirming the change of ownership of property and land
HMO licence
This licence was brought into force on the 6th July 2006. This applies to properties that are rented by five or more separate tenants and which are over three floors.
Home information packs
Also known as HIP. These were brought into force gradually from August 2007 and were compulsory for all properties by January 2008. The packs contain information which your solicitor applied for during the purchase of a property but as a vendor you now have to supply the information upfront. Estate agents are not allowed to sell a property without a HIP in place
Homebuyer's report
A more detailed survey than a basic valuation but less detailed than a full structural survey, which is carried out by an RICS chartered surveyor
House of Multiple Occupancy (HMO)
A house which is rented out and has 5 or more different tenants (who have no connection) or a property over three floors
Housing association
A non-profit organisation registered with the housing corporation whose purpose is to provide, construct, improve or manage houses for sale or rent
Housing benefit
A means tested social security benefit in the UK that is intended to help people with low incomes and low savings pay for the rent of the individuals concerned
HP (hire purchase)
Legal term for a contract developed in the UK and is a method of purchasing an item, where the buyer hires and takes it and takes possession and pays instalments
IFAs - Independent Financial Advisers
An advisor who is not tied to a set number of lenders and is free to advise and recommend you more products from the entire market
Immigration
Movement of people between countries.
Income multipliers or multiples
This is where a lender will stipulate that you can only borrow X amount of times your yearly salary. This does vary depending on what lender you use
Income references
A reference from your employer confirming your yearly income, generally only used for mortgage lenders.
Indemnaty Policy
Insurance policy taken out a proprietor to cover possible legal's cost of a preserved risk. I.e. title risks, planning risks, restrictive covenants, etc, etc
Inspections
In property terms this is where an estate agents or letting agent inspects the property to make sure that there are no damages
Insurance
Something that is taken out, which you generally pay for monthly, to cover the cost to replace or rebuild something. i.e. building insurance covers the cost to rebuild your house
Interest only
This is where you are only paying the interest on your mortgage payment. At the end of your mortgage term you will still owe the amount you borrowed initially
Inventory
Since the introduction of the tds scheme inventories have become essential for landlords to have their property checked via an inventory clerk and list the current condition of the property.
IPT Insurance premium tax
A tax which is set on all UK general insurance set by the government. Please note the governments can change this at any time.
Key worker grants
Government scheme which gives people who work for the government i.e. nurses, firemen, etc, etc a loan for a deposit for a house
Landlords building insurance
This is the same as buildings insurance, but it insures a property where the owner doesn't reside and has let it out to tenants.
Lease extensions
Term used to extend a existing lease which is becoming low on a leasehold property, which the freeholder has to grant
Leasehold
This is where a property is owned for a set number of years and the land is owned by a freeholder.
Leaseholder
The term given to a person who owns a leasehold property
Licensed conveyancer
A qualified individual who specialise in the legal process of buying and selling a property. This is an alternative to a solicitor
Loan
A sum of money which is borrowed from a financial institution, generally not secured against an assets
Local authority
Term used for your local council.
Local search
This is a search which solicitors apply for during a purchase of a property. This search revels such information like roads and if they are adopted by the local council
LTV Loan to value
The percentage of mortgage compared to the value of a property. i.e. £70,000 mortgage £100,000 house = 70% LTV
Management company
A company which is set up generally by a freeholder to manage the condition of a property. You generally find management companies only manage block of flats.
Market Appraisal
Estate agents or letting agents carry out an inspection of a property to determine the value prior to marketing the property
Matrimonial period on a lease
This is a term in the lease on a leasehold property where the lease becomes more expensive to renew.
MIG Mortgage Indemnity Guarantee.
This is an insurance policy put in place to cover protect the lender if you were to be repossessed.
Mortgage
A sizable loan which is taken out to purchase a property and is secured against the property until such time that the loan is paid.
Mortgage Term
The length of time that someone takes out a mortgage for
Mortgagee
A bank, building society or any other organisation who has let someone money to purchase a property, under the terms of a mortgage.
Mortgagor
This is the individual who is taking out the mortgage.
Multiple agency
This is the term used for when you instruct 3 or more estate agents to market your property.
Negative equity
This is where you owe more money on your property than what the property is actually worth, in which case you can't actually benefit from any equity release.
Negotiator
In the property industry this term is used for the sales person trying to negotiate a sale/let on a property.
New Builds
A building which has just been erected/built.
Niceic certificate (Electrical)
A certificate which is given to a person by an electrician after they have tested the electrics in a property.
No-claims bonus
Associated to insurance. This is where you take out an insurance policy and are rewarded for not claiming.
Noise disputes
Disputes between neighbours which can result in court proceedings if a compromise is not found.
Non-status
Someone who has impaired credit are generally people who apply for a non-status mortgage.
Office of fair trading (OFT)
A governing body which was set up to ensure that consumers are treated fairly buy businesses
On risk
The insurance which you have taken out commence
Part owned
You co-own a property with another individual
Party wall agreement
An agreement between neighbours to erect/build an extension, building, etc, etc against the wall of the neighbouring property
PAT test
Portable appliance test. This is generally arranged via landlords for electricians to check all electrical appliance which they own in a property.
Personal pension
An income plan set up to save for retirement, also giving you a tax free lump sum upon retirement.
Planning permission
Permission which is given via the local government/council, to extended or erect a property
Policy excess
The amount you have to pay, which would have been made aware to you upon taking the policy, when claiming on insurance
Policy schedule
The details explaining your cover and the amount you have to pay.
Possession
This is a term used by the mortgage lender when they repossess your property. You can stop house repossession
Probate
The legal process of settling the estate of a deceased person, specifically resolving all claims and distributing the decedent's property under a valid will. The possible complications in such cases are called probate issues
Problem tenants
This term is generally used to associate tenants that are non-payers of their rent
Property management
Companies which are set up to manage all aspect of a property. i.e. rent is paid on time, the property is kept in the condition is was let, etc,etc
Purchaser
Term used for someone who is purchasing a property
Quick flat sale
This is generally where the owner of a flat uses a investor or an investment company to achieve a quick flat sale.
Quick house sale
Properties that are sold quicker than normal. These properties are generally sold to investment companies or small investors
Quick property sale
This is generally where the owner of a property uses a investor or an investment company to sell their property quickly
Quick sale
Term used to sell something quickly. Achieving Quick Sales is what Quick Purchase does.
Rebuilding cost
When a property is surveyed by a surveyor he will estimate the amount to rebuild the property in it's present state.
Relocation
The property term for someone relocating is someone moving to a different area or moving due to job relocation.
Remittance fee
A charge which your mortgage company will charge for sending money to your solicitor, enabling you to complete.
Remortgage
Where you take out a new mortgage on your existing home
Removal expenses
When moving, if you use a removal company or move yourself, you will have expense such as van hire or removal men
Rent assess officer
An appointed officer, appointed by the rent service office, who is appointed to determine the rent of a property
Rent back
This is where you sell your property and become a tenant generally via an investment company in the sale and rent back sector
Rent guarantee insurance
This is an insurance policy which is taken out by a landlord in case a tenant doesn't pay their rent.
Repayment
This is where you not only pay the interest on your mortgage but you also repay the mortgage as well
Repayments
Payments which are made to pay back a purchase of an item i.e. mortgages, loan, etc, etc
Repossession
In the property industry this is a legal procedure via the courts to gain possession of a property which the present owner has stopped paying for. You can get stop repossession.
Repossession order
In the property industry this is an order which is given via the court to take possession of a property. It will lead to being repossessed.
Retention
This is where a lender withholds part of the loan generally due to work required on the property
Retirement homes
Properties which are set up solely for the elderly and will either have a 24 hour call out service or a in house carer living in the retirement home
Right of way
This is a right for people to walk across property owned by someone else
Right to buy
This is a term used for people who are council tenants, which are given the opportunity to purchase the property from the council.
Sale and rent back
This is an industry term allocated to companies/investors who are looking to buy properties from homeowners and rent it back to them, giving them security of knowing the property is going to be looked after.
Sealing fee
A charge your mortgage company pass to you when you repay your mortgage
Searches
These are vital checks made by a solicitor or licensed conveyancer when going through the purchase of a property
Section 20 works
Essential works which are carried out to council managed properties
Self employed
Someone who works for themselves and is generally highly skilled in a trade or owns their owns company
Self-certified
Mortgage lender don't request any references form you and you just confirm your salary to them
Sell and rent back
This is where homeowners sell their property to companies in the sell-and-rent-back sector and rent back their property for a set time period, paying rent and releasing equity within their home. Also called sale and rent back and commonly used by people who are facing repossession, wanting to get out of the boom and bust markets, etc, etc
Separation
Where two people who are not married go their separate ways
Sitting tenants
A person having a legal right of occupation, even if the property is sold, and who is able to apply to the local authority to set their rent.
Sole agent
This is where you use one estate agent to market your property for a set time period
Solicitor
A qualified individual skilled in a variety of laws and also able to handle Conveyancing
Stamp duty
A government tax which you have to pay on properties of the value of £175,000
Stamp duty exemption areas
These are area set by the local government to be exempt from stamp duty to reduce costs when purchasing a property. These are generally found in large council estates.
Stamp duty exemption
Properties up to the value of £175,000 that are purchased, do not require you to pay the government stamp duty
Structural survey
This is the most detailed survey you can have and this is where the surveyor will go through the property and report on everything both internally and externally. This gives you a clear understanding of exactly what property you are purchasing, but because they are not qualified in certain areas i.e. electric they can only pass on suggestions. This is a very expensive survey, generally costing in the region of about £1000
Sum assured
The sum stated of benefits which are payable with a life assurance policy
Survey results
This is where the surveyor has complied his report and has provided you with his comments and views and will also highlight any defects the property may have
Surveyors
Qualified individuals who carry out surveys on properties. Bank and building societies will only use an RICS surveyor to appraise a property on their behalf, qualify if the property is suitable for lending purpose
SVR Standard variable rate
This is the rate set out by a mortgage company that you will go on after their initial rate.
TDS scheme
This is a scheme set up in 2008 so tenants deposit were not held by the landlords. The scheme is now in place to stop landlords refusing to reimburse tenants deposits over maintenance problems. Inventory clerks make detailed reports of the property and check the tenants in and out. If there are any disputes the deposit is held until these are rectified
Third party buildings insurance
This is where a lender will have a clause in the mortgage, that if you take buildings insurance with someone other than them they will charge you for doing this.
Tie-in period
A period where you are tied in to a specific mortgage deal, coming out of this deal generally results in redemption penalties
Title deeds
Documents which clearly state the ownership of the freehold and leasehold of a property
Transfer deed
This is a document which you will sign in the buying and selling of a property, transferring ownership
Valuation
The sole purpose of a valuation is to determine whether to lend, and if so, how much to lend. It is an assessment of the value of the property to confirm it is suitable security for the lender
Variable rate
The mortgage interest rate goes up and down, according to the bank of England base rate. Your payments are adjusted accordingly
Vendor
This is the term used for a person who is selling a property (the owner)
Visa
This is an endorsement made in a passport that allows the bearer (owner of the passport)
This glossary is meant as a general guide to help you understand quick sales and should not be seen as legal advice.
More useful links
sell and rent back
sell property quickly
being repossessed
eviction notices
