Acceptance: A document informing a lender that a borrower would like to accept a mortgage offer.

Additional Security Fee: An additional fee sometimes charged by lenders to protect them against a borrower defaulting on their repayments.

Advance: The amount of money lent to a borrower by a lender. This loan is secured on the property as part of the mortgage debt.  

Agreement: A legally binding document which outlines the terms between the buyer and the seller; this document binds both parties to complete the transaction. Both the buyer and seller receive a copy of the document and when both parties are ready to legally commit, the two contracts are exchanged.

Agreement in Principle: This is a statement from a lender showing their intent to provide funding subject to certain conditions; it outlines approximately how much money you can borrow. This statement is based on your income and credit history. Having an Agreement in Principle can help you get a mortgage or to have an offer accepted on a property.

Annual Percentage Rate (APR): This defines the total amount of interest you’ll pay each year as a percentage of the loan balance. Using APR you can easily compare the cost of different mortgages; a lower rate is typically a better deal!

Approval in Principle: The same as ‘Agreement in Principle’ above. This is a statement from a lender showing their intent to provide funding subject to certain conditions; it outlines approximately how much money you can borrow. This statement is based on your income and credit history. Having an Approval in Principle can help you get a mortgage or to have an offer accepted on a property.   

Arrangement Fee: An administration fee charged by some lenders for arranging a loan.

Arrears: Any amount of money which is overdue in relation to a mortgage repayment. Arrears may result in a lender taking action to repossess the property.

Asking Price: The price at which a property is listed for sale.

Assignment: The process where the rights to or claim of a property is transferred from one party to another. 

Assisted Sale: A sale mechanism that allows homeowners to maximise the sale value of their home by unlocking “hidden” value. This is achieved by making updates such as furnishing, refurbishment or development. These updates are typically paid for and carried out by a property professional and the property professional is then reimbursed by the homeowner at the point the property is sold.

Assured Shorthold Tenancy (AST): An AST is a type of tenancy agreement made between a landlord and a tenant. It is the most common tenancy agreement in the UK. It gives the tenant the right to occupy the property for the period stated in the agreement, provided they pay the rent and abide by the conditions of the agreement. Once the time period of the AST is over, the landlord is entitled to get their property back and the tenant has no further rights to occupy the property.

Auction: A mechanism to purchase a property where the property is sold to the highest bidder.

Base Rate: The interest rate which is set by the Bank of England. The base rate is generally used as a benchmark for the interest rates banks charge when lending money to customers. Variable mortgage rates are typically adjusted depending on movements in the base rate.

Below Market Value (BMV): Any property being sold for a price less than its true market value. This is usually because the owners of the property need to sell quickly.

Best and Final Offer: A prospective buyer’s last and highest offer for a property.

Borrower: An individual who is obliged to repay a loan from a lender in accordance with the loan terms.

Break Clause: A break clause is a term in an agreement that defines the point at which a contract can be terminated. 

Bridging Loan: A short-term loan to cover an interval between two transactions; this enables a buyer to purchase a property before selling their existing property.

Broker: An individual or company who arranges a transaction between two parties in return for commission when the deal is executed; a mortgage broker arranges finance between borrowers and lenders.

Building Insurance: An insurance policy which covers any structural damage to a property; this is a requirement by lenders.

Building Survey: A report carried out by a Chartered Surveyor on the construction and any defects of a property, following a thorough inspection. This is also sometimes referred to as a full structural survey.

Buyer: An individual looking to purchase a property. Also known as the purchaser.

Buy-to-Let Mortgage: A mortgage for buying a property with the intention to rent it to tenants for investment purposes. Buy-to-let mortgages typically have a higher interest rate.

Capital: The amount of money borrowed from a lender. Interest is calculated on this figure.

Chain: Defines a sequence of buyers and sellers who are linked together and reliant upon one another to complete their respective transaction. If a buyer or seller drops out of a chain, the chain may collapse preventing the others in the chain from completing.

Chain Free: If an owner of a property does not need to sell the property in order to buy another, they are regarded as chain free.

Charge: Lenders take a charge on the property they are lending against. This gives lenders security on their loan as they can take control of the property if the terms of the loan are broken. 

Chartered Surveyor: A professional employed to perform a Building Survey and report on the condition of a property.

Collateral: Any property pledged as a guarantee for the repayment of a loan.

Commission: A fee (typically a percentage of the purchase price) charged by an estate agent for providing services related to the transaction.

Commonhold: A type of property ownership whereby you own the freehold tenure of a unit within a building or estate; however, share the responsibility for the common services of the building or estate. 

Completion: The point at which the legal ownership of a property is transferred from one party to another. Typically, the seller’s solicitor will ask the estate agent to release the keys to the buyer at this time.

Completion Statement: A statement from the solicitor detailing all financial transactions, including all costs.

Conditions of Sale: A set of terms defined in the agreement (contract) between the buyer and seller which outline the rights and duties of each party.

Contents Insurance: An insurance policy which covers any loss of or damage to possessions in a property.

Contract: The same as ‘Agreement’ above. A legally binding document which outlines the terms between the buyer and the seller; this document binds both parties to complete the transaction. Both the buyer and seller receive a copy of the document and when both parties are ready to legally commit, the two contracts are exchanged.

Contract Race: When two or more parties have offers accepted on a property and the seller will sell to the first party to exchange contracts.

Covenant: A legal requirement incorporated in the title deed requiring the owner to do (positive covenant), or not to do (restrictive covenant), something in relation to the property.

Conveyancer: A professional who is qualified to handle the legal and administrative process of transferring the ownership of a property from one party to another. This is typically a solicitor or licensed conveyancer. 

Conveyancing: The legal and administrative work involved in transferring the ownership of a property from one party to another. 

Conveyance Deed: The legally binding document that transfers the rights, burdens and the benefit of the property from the seller to the buyer.

Corporate Let: This is a rental strategy for landlords whereby a company rents the property from the landlord typically under a management agreement. The company then administers the property, letting it to tenants on a short-term or long-term basis and is responsible for the maintenance. This rental strategy guarantees landlords a monthly rent without the hassle of tenants or maintenance charges, as outlined in the management agreement.

Council for Licensed Conveyancers: A regulatory body for conveyancing with whom all conveyancers should be registered.

Deal Sourcing: An assisted purchase where as a minimum a property professional identifies an investment opportunity which meets the criteria of their client and negotiates the price on behalf of their client; however, in addition they may also renovate properties and manage investment properties for their clients. Deal sourcing is mainly used by investors but anyone can use a property professional to help them source a property to purchase either as an investment property or for their personal use. 

Deal Packaging: The same as ‘Deal Sourcing’ above. An assisted purchase where as a minimum a property professional identifies an investment opportunity which meets the criteria of their client and negotiates the price on behalf of their client; however, in addition they may also renovate properties and manage investment properties for their clients. Deal sourcing is mainly used by investors but anyone can use a property professional to help them source a property to purchase either as an investment property or for their personal use.

Decision in Principle: The same as ‘Agreement in Principle’ above. This is a statement from a lender showing their intent to provide funding subject to certain conditions; it outlines approximately how much money you can borrow. This statement is based on your income and credit history. Having a Decision in Principle can help you get a mortgage or to have an offer accepted on a property.

Declaration of Trust: Is a legally binding document between joint property owners which records the financial arrangements between the owners. This document can include anyone else with a financial interest in the property.

Deeds: A legal title document which proves ownership of a property or land. It provides historical information about the property and includes any covenants. Also known as title deeds.

Deposit: An amount of money (usually a low percentage of the full purchase price) paid by the buyer to the seller on exchange of contracts to secure the purchase of a property. Paying this and exchanging contracts commits you to going through with a purchase; deposits are only refundable in exceptional circumstances. 

Detached: A type of property which stands alone; it does not share any walls with an adjacent property.

Development: A property which has recently been built or refurbished.

Disbursements: A payment made by a third party on the buyers behalf and then claimed back from the buyer. E.g. stamp duty, land registry charges and search fees paid by the solicitor/licensed conveyancer.

Down Payment: The same as ‘Deposit’ above. An amount of money (usually a low percentage of the full purchase price) paid by the buyer to the seller on exchange of contracts to secure the purchase of a property. Paying this and exchanging contracts commits you to going through with a purchase; down payments are only refundable in exceptional circumstances. 

Down Valuation: When a lender values a property and determines the value to be lower than the price given by an estate agent/seller or as stated on the mortgage application, causing the mortgage application to be refused.

Draft Contract: A draft version of the agreement/contract, which is then edited by the respective parties’ solicitors. 

Early Redemption Charge (ERC): A charge given by some lenders if a borrower ends a mortgage within a specified amount of time (known as the early repayment charge period). 

Easement: A right given to someone who is not the owner of a property to cross or otherwise use the property owner’s land for a specified purpose. E.g. a right of way.

Endowment Mortgage: A type of interest only mortgage, whereby monthly repayments are paid into an endowment policy, which is then used to pay off the loan at the end of the term.

Energy Performance Certificate (EPC): This is a rating scheme to show the energy efficiency of a property and gives an indication of the likely energy bills. The EPC forms part of a home information pack.

Engrossment: This is the final version of a legal document, prepared by a solicitor and ready for signing.

Equity: An owner’s financial interest in a property; equity is the difference between the market value of a property and the amount outstanding on the mortgage.

Estate Agent: A property professional who markets properties on behalf of sellers. Estate agents typically charge a fee for their services (usually a percentage of the selling price).

Estate Agent Contract: A legal agreement between a seller and an estate agent. 

Excess: The amount of money an insurance policy holder is required to pay in order to make an insurance claim.

Exchange of Contracts: Once contracts have been exchanged both parties are committed to the transaction; both the buyer and seller can walk away at any point before the contracts have been exchanged. Once the contracts are physically exchanged, the parties become legally bound by the terms of the contracts. 

Execution-Only Mortgage: As a borrower you choose a mortgage without receiving any advice or recommendations from an advisor.

Failed Valuation Survey: A refused mortgage application as a result of the valuation survey.

First-Time Buyer: An individual who has never bought or owned a property before. 

Fixed-Rate Mortgage: A mortgage where you pay a fixed rate of interest for a fixed period. With this type of mortgage you know exactly what you’ll be paying each month.

Fixtures and Fittings: Non-structural items in a property which are either included or excluded in the sale.

Flexible Mortgage: A mortgage that has flexible repayment terms.

Flying Freehold: A freehold property which either overhangs or underlies another freehold property/land. 

Freehold: A tenure of land which gives an individual absolute ownership of both the building and the land it is built on.

Freeholder: The owner of a freehold.

Financial Conduct Authority (FCA): The Financial Conduct Authority (FCA) is an independent body which regulates the financial services industry.

Full Structural Survey: The same as ‘Building Survey’ above. A report carried out by a Chartered Surveyor on the construction and any defects of a property, following a thorough inspection.

Gazumping: When a seller had initially accepted an offer on their property but then accepts a higher offer from a different party.

Gazundering: When a buyer has made an offer on a property which has been accepted but then reduces their offer just before exchanging contracts.

Ground Rent: A fee paid by a leaseholder of a property to the freeholder of the property, in order to occupy the land the property sits on.

Guarantor: An individual responsible for paying a borrower’s debt, if the borrower defaults on their repayments. Some lenders require a guarantor.

Guide Price: This gives perspective buyers an estimate of a properties purchase price; however, offers can be under or over this.

Help-to-Buy: A Government scheme which lends first-time buyers and homeowners an equity loan to buy a newly built property. 

Help-to-Buy ISA: A savings account intended for purchasing your first home, whereby the Government boost your savings by 25%. Therefore, for every £1,600 you save (the minimum amount required to receive the government bonus), you’ll receive a government bonus of £400. The maximum government bonus you can receive is £3,000. This scheme is now closed to new accounts.

Holiday Let: A short-term rental strategy whereby a property is rented to an individual for the purpose of occupying on holiday. 

Homebuyer’s Report: A report by a surveyor which assesses the condition of a property (highlighting any major defects) in order to value the property on behalf of a buyer.

Homebuyer’s Survey:  The same as ‘Homebuyer’s Report’ above. A report by a surveyor which assesses the condition of a property (highlighting any major defects) in order to value the property on behalf of a buyer.

Home Condition Report: An unbiased report on the condition of a property; this is an optional part of a home information pack.

Home Information Pack: A compulsory information pack which contains specific information relating to the property for sale. Typically, this is compiled by the seller prior to marketing the property.

House of Multiple Occupancy (HMO): This is a rental strategy where a landlord rents their property out on multiple tenancy agreements. The tenants have their own individual rooms but share facilities like the bathroom and kitchen.

House Price Index (HPI): A method of representing changes in house prices over time. 

House Share: The same as ‘House of Multiple Occupancy (HMO)’ above. This is a rental strategy where a landlord rents their property out on multiple tenancy agreements. The tenants have their own individual rooms but share facilities like the bathroom and kitchen.

Improvement Grant: A grant for the use of repairing/improving a property offered by the local authority.

Independent Financial Advisor (IFA): An individual qualified to advise a client on financial products using their specialised knowledge of the market.

Independent Property Advisor (IPA): A property professional who uses their specialist knowledge of the marketplace to select and advise on a property strategy which best suits the needs of their client.

Individual Savings Account (ISA): An individual savings account that allows individuals to hold cash, shares and unit trusts free of tax on dividends, interest and capital gains.

Individual Savings Account (ISA) Mortgage: An interest only mortgage with an additional investment plan in the form of an individual savings account. You can use the ISA to save money throughout your mortgage, in order to payoff your mortgage early or at the end of the repayment period. 

Instruction: When a property owner engages an estate agent to market their property.

Insurance: A contract which protects an individual or entity from financial losses or any other specific loss defined in the insurance policy, over a defined period of time. 

Interest Charge: A fee charged by a lender to the borrower, calculated as a percentage of the amount borrowed. The percentage is known as the interest rate. 

Interest Rate: The interest charge written as a percentage of the amount borrowed. E.g. a £100,000 mortgage with a 5% interest rate would mean you have to pay back the full amount of the loan (£100,000) plus 5% of its value (£5,000).

Interest Only Mortgage: A type of mortgage where the borrower only has to pay the interest on the loan for a certain period. The principle is repaid separately. 

Joint Agents: When two or more estate agents are instructed by a seller to market a property. Only the agent who sells the property is paid. 

Joint Tenants: When two or more parties jointly own an estate or property (not necessarily equally), if one party dies their share is passed to the other(s).

Joint Venture (JV): A business arrangement whereby two or more parties work together to accomplish a task; this task can be a new project or any other business activity. Typically investors will joint venture with property professionals, where they fund projects for a return on their investment.

We haven’t found any property related words beginning with K yet… if you know one let us know!

Land & Building Transaction Tax (LBTT): This is a tax which replaced UK stamp duty land tax (SDLT) in Scotland; depending on the purchase price, you will have to pay this when purchasing land or property in Scotland.

Land Registry: A government department which records and stores ownership (including any charges such as a mortgage) of land in England and Wales. There are separate registries for Scotland, Northern Ireland and the rest of the UK.

Land Registry Fees: A fee paid to Land Registry to register the ownership of a property. These fees are typically paid by a  buyer’s conveyancing lawyer on their behalf.

Land Transaction Tax (LTT): This is a tax which replaced UK stamp duty land tax (SDLT) in Wales; depending on the purchase price, you will have to pay this when purchasing land or property in Wales.

Lease: The use of a property which is owned by another person, for a specified time period.

Leasehold: A tenure of land which gives an individual the ownership and right to occupy both the building and the land it is built on for a specified period of time, subject to a payment to the owner of the freehold.

Lease Agreement: A legal document (contract) outlining the terms under which the owner of a property grants rights to another party to occupy their property for a specified period of time. 

Lease Option (LO): This is a mechanism to buy/sell a property whereby a renter has the option to purchase the rented property for an agreed price, during or at the end of the rental period.

Lender: An individual or institution that lends money to assist a borrower with a property purchase.

Lender’s Legal Fees: Any fees incurred by a lender due to arranging a loan for a borrower; these fees are paid by the borrower.

Lessee: An individual who is leasing a property; they hold the lease on the property.

Lessor: An individual who is leasing their property; they grant the lease on their property.

Licensed Conveyancer: The same as ‘Conveyancer’ above. A professional who is qualified to handle the legal and administrative process of transferring the ownership of a property from one party to another. This is typically a solicitor or licensed conveyancer. 

Lien: The legal right to keep possession of property belonging to a borrower as security, until a debt owed by the borrower is discharged.

Listed Building: A building which is registered as a building of special interest or has a preservation order on it.

Loan-to-Value (LTV): A percentage which shows the ratio of a loan on a property to its market value. E.g. a mortgage that offers 75% LTV will cover 75% of the property’s price.

Local Authority Search: A search to identify any planned future developments by a council, which may affect a property (and its value) or the surrounding area.

Maintenance Charge: A fee paid by a tenant or leaseholder to cover costs of maintaining the property they are leasing. 

Maisonette: A type of property which is part of a larger building; however, has its own private entrance.

Mortgage: A long term loan of money used to fund a property purchase, which you pay back with interest to whoever lent you the money. The property is held as security for the loan.

Mortgagee: The lender of a mortgage; typically a bank or building society.

Mortgage Deed: The legal document outlining the terms of a loan secured on a property; it gives the lender a legal right to property.

Mortgage Fees: Normally charged by your financial advisor, for acting on behalf of your bank or building society.

Mortgage Indemnity Guarantee (MIG): The same as ‘Additional Security Fee’ above. An additional fee sometimes charged by lenders to protect them against a borrower defaulting on their repayments. 

Mortgage Indemnity Premium (MIP): The same as ‘Additional Security Fee’ above. An additional fee sometimes charged by lenders to protect them against a borrower defaulting on their repayments.

Mortgage in Principle: The same as ‘Agreement in Principle’ above. This is a statement from a lender showing their intent to provide funding subject to certain conditions; it outlines approximately how much money you can borrow. This statement is based on your income and credit history. Having a Mortgage in Principle can help you get a mortgage or to have an offer accepted on a property.

Mortgage Promise: The same as ‘Agreement in Principle’ above. This is a statement from a lender showing their intent to provide funding subject to certain conditions; it outlines approximately how much money you can borrow. This statement is based on your income and credit history. Having a Mortgage Promise can help you get a mortgage or to have an offer accepted on a property.

Mortgage Rate: The rate of interest charged on a mortgage. This is either fixed or variable and quoted by all mortgage lenders. The variable rate will vary in accordance with the Bank of England base rate. 

Mortgage Term: The length of time between borrowing money from a lender and the expiry date of those loan terms when the mortgage has to be repaid.

Mortgage Valuation: A report conducted by a lender to determine a property’s value and subsequently, the maximum amount to be loaned on the security of a property. 

Mortgagor: The borrower of a mortgage; typically a homeowner.

Multi-Let: The same as ‘House of Multiple Occupancy (HMO)’ above. This is a rental strategy where a landlord rents their property out on multiple tenancy agreements. The tenants have their own individual rooms but share facilities like the bathroom and kitchen.

Multiple Agency: The same as ‘Joint Agents’ above. When two or more estate agents are instructed by a seller to market a property. Only the agent who sells the property is paid. 

Negative Equity: A homeowner is said to be in negative equity if their property is worth less than their mortgage loan balance.

New Build: Refers to a property that hasn’t been purchased or lived in yet and has recently been built. However, different banks and lenders have different definitions, which can vary from whether the property has been lived in, but not bought, whether it has been converted or refurbished, or whether it has been finished within a certain amount of years.

NHBC (National House Building Council) Scheme: This is a warranty on some new builds for structural defects arising within a certain period after construction.

Offer: An indication from a buyer to a seller that they will purchase their property at the indicated price. Offers are not legally binding in England and Wales; they can be withdrawn or changed at any time before exchanging contracts.

Offers In Excess Of (OIEO): Indicates that the seller of the property wants prospective buyers to submit offers greater than the price advertised.

Offers In Region Of (OIRO): The same as ‘Guide Price’ above. This gives perspective buyers an estimate of a properties purchase price; however, offers can be under or over this.

Offset Mortgage: A type of mortgage linked to a savings account. The balance in the savings account is used to reduce the interest charged.

Ombudsman: An official body which is responsible for investigating complaints against businesses on behalf of consumers and tries to resolve them.

Open Market Value: The estimated price a property would achieve if it was listed for sale on the date of the valuation. 

Option Agreement: A legal agreement that gives an individual the option to purchase a property for an agreed price but they are not obligated to buy it. They are often used between land-owners and developers, whereby the developer will use the option period to apply for planning permission.

Over Market Value (OMV): Any property being sold for a price greater than its true market value. 

Part Exchange (PX): A mechanism to purchase a property whereby the buyer gives the seller an item of value they own as part of the payment for the property. Typically a developer will take a buyers old home as PX for a new one.

Peppercorn Rent: A very low or nominal rent, usually paid annually.

Pied-a-Terre: A small property kept for occasional use.

Premium: The amount to be paid for an insurance policy. 

Principal: The amount you borrow from a lender and have to pay back. 

Probate: A property sale due to death which is being handled by either solicitors or family members.

Professional Indemnity Insurance: An insurance policy used to protect a business or individual if a client claims their service isn’t good enough; it covers any losses to clients arising from errors in their work.

Public Liability Insurance: An insurance policy used to protect a business or individual from a claim arising from the injury or death or damage to property of anyone on the business’ or individual’s property.

Purchaser: The same as ‘Buyer’ above. An individual looking to purchase a property. Also known as the buyer.

We haven’t found any property related words beginning with Q yet… if you know one let us know!

Redemption: Completion of the full and final payback of a mortgage.

Redemption Fee: If a mortgage is repaid before the end of the term, an Early Repayment Charge (Redemption Fee) may be charged by the mortgage lender. 

Redemption Figure: The amount of money needed to fully repay a mortgage including interest and any penalties.

Rent-to-Buy: The same as ‘Lease Option’ above. This is a mechanism to buy/sell a property whereby a renter has the option to purchase the rented property for an agreed price, during or at the end of the rental period. 

Rent-to-Own: The same as ‘Lease Option’ above. This is a mechanism to buy/sell a property whereby a renter has the option to purchase the rented property for an agreed price, during or at the end of the rental period.

Renting: This is an agreement between a landlord and a tenant, where a tenant makes a monthly payment for the temporary use of the landlord’s property.

Repayment Mortgage: A type of mortgage with monthly repayments which include capital payments and interest.

Repossession: When a mortgage provider chooses to take possession of the property that secures their loan, if a borrower defaults on their payments.

Residential Property: A property used for private or domestic purposes.

Retention: Part of the purchase money which is held back on completion by a solicitor until a specified action has been completed.  

Revaluation: When a surveyor is instructed to determine a property’s value after a down valuation, or for an application to remortgage a property.

Sale Contract: The same as ‘Agreement’ above. A legally binding document which outlines the terms between the buyer and the seller; this document binds both parties to complete the transaction. Both the buyer and seller receive a copy of the document and when both parties are ready to legally commit, the two contracts are exchanged.

Sealed Bids: The same as Best and Final Offer above; however, the prospective  buyers must submit their best and final offer to the agent selling the house in a sealed envelope. Therefore, the amount offered by each prospective buyer is unknown by anyone else involved.

Searches: These are local authority and land registry searches which are done to identify any planned future developments by a council, or any other matter which may affect a property (and its value) or the surrounding area.

Security: Property provided as security for loan repayment.

Seller: A person who is selling a property. Also known as the vendor.

Semi-Detached: A type of property which shares one of its walls with an adjacent property.

Service Charge: The same as ‘Maintenance Charge’ above. A fee paid by a tenant or leaseholder to cover costs of maintaining the property they are leasing.

Serviced Accommodation: This is a rental strategy whereby a fully furnished property is made available for either short-term or long-term stays, providing hotel-like amenities.

Shared Ownership: A mechanism to purchase a property whereby a buyer who wishes to occupy the property buys a proportion of the property and another party (typically a local authority, housing association or the builder) buys the rest. The occupant then pays rent to the other party, in proportion to how much of the property the other party owns.

Single Let: This is a long-term rental strategy whereby a property is rented on one tenancy agreement to an individual, couple or family.

Snagging: The process of checking over a new build for small faults that need to be fixed before selling. A snagging survey is usually completed prior to the buyer moving in, in order to spot minor issues such as paint work and check the quality of workmanship. 

Sole Agency: When only one estate agent is instructed by a seller to market a property. 

Sole Selling Rights: When an estate agent is given exclusive rights to market a property as they are the sole agency.

Solicitor: A legal professional who prepares the documents for the sale or purchase of a property. 

Stamp Duty Land Tax (SDLT): This tax is paid by a buyer when purchasing land or property in the UK over a certain price. The tax rate varies depending on the purchase price.

Standard Security: A form that confirms to a lender that they can repossess the borrowers home if mortgage payments aren’t up to date.

Standard Variable Rate (SVR): A type of mortgage where the interest rate can fluctuate at the discretion of the lender, based on market conditions. 

Structural Survey: The same as ‘Building Survey’ above. A report carried out by a Chartered Surveyor on the construction and any defects of a property, following a thorough inspection. This is also sometimes referred to as a building survey.

Studio Flat: A type of flat consisting of one main living room, which includes cooking and sleeping facilities. There is a separate bathroom.

Subject to Planning Permission (STPP): A phrase which indicates that planning permission needs to be granted for the intended outcome. For example, developers often purchase land subject to planning; this is a legal agreement that is binding such that should planning permission be granted the developer has to purchase that land. Estate agents often advertise properties stating they can be extended or improved subject to planning; indicating that this may or may not be possible and would depend on whether planning permission is granted.

Subject to Survey: Indicates a provisional agreement between a buyer and seller which is not legally binding until surveys are completed and contracts exchanged. Therefore, neither the buyer or seller is legally bound to go through with the transaction and each may withdraw without incurring a penalty.

Subject to Sale: Indicates that a property has had an offer which has been accepted; however, the provisional purchaser can only complete once they have sold their own property.

Survey: A report outlining the condition of a property.

Surveyor: A qualified expert who surveys a property, determining its market value; highlighting any potential problems that may affect its price or need addressing in future.

Sold Subject to Contract (SSC): Indicates a provisional agreement between a buyer and seller (which is not legally binding) before the exchange of contracts.

Tenancy: The same as ‘Lease’ above. The use of a property which is owned by another person, for a specified time period. 

Tenancy Agreement: The same as ‘Lease Agreement’ above. A legal document (contract) outlining the terms under which the owner of a property grants rights to another party to occupy their property for a specified period of time. 

Tenant: The same as ‘Lessee’ above. An individual who is leasing a property; they hold the lease on the property.

Tenant-Buyer: A renter who has the option to purchase the property they are renting during or at the end of their rental period, as per the lease option agreement.

Tenants in Common: When two or more parties jointly own an estate or property (not necessarily equally), if one party dies their share of the property is passed on to their heirs, rather to the other parties who jointly own the estate or property. 

Tenure: The conditions of which a property is held or occupied, i.e. whether it is freehold,  leasehold or commonhold.

Terraced: A type of property which shares both side walls with adjacent properties. 

Title: The legal right to ownership of property or land.

Tracker Mortgage: A type of mortgage where the interest rate is linked to the Bank of England’s base rate or another base rate; therefore, the interest rate can change at any time.

Transfer Document: A legal document that transfers the sellers right, title and interest in the property they are selling, to the buyer.

Under Offer: A seller has accepted an offer from a buyer but the contracts have not yet been exchanged. A property is under offer until the exchange of contracts.

Vacant Possession: Providing a property that has been vacated by any previous occupants, other than the belongings which were agreed to be left in the contract. 

Valuation: The current market value of a property

Valuation Survey: A survey to establish an estimate of the current market value of a property for mortgage purposes. This is typically conducted by a chartered surveyor.

Variable Base Rate: An interest rate which varies over time as it is based on an underlying interest rate such as the Base Rate set by the Bank of England, which may change due to market conditions.

Variable-Rate Mortgage: A type of mortgage where the interest rate is based on a variable base rate; therefore, the interest rate can change at any time.

Vendor: The same as ‘Seller’ above. A person who is selling a property. Also known as the seller.

Vendor Finance: A type of loan whereby the seller of a property lends money to the buyer so that they can purchase the vendor’s property. This loan is then paid back to the vendor, typically with interest.

Vendor Paid Deposit: The same as ‘Vendor Finance’ above; however, the seller only finances the deposit. Vendor Finance is a type of loan whereby the seller of a property lends money to the buyer so that they can purchase the vendor’s property. This loan is then paid back to the vendor, typically with interest.

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Yield: The income generated from an investment property as a percentage of the property’s purchase price. 

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