Document confirming to a lender that a borrower wishes to accept a mortgage offer.
A public sale in which property or items of merchandise are sold to the highest bidder.
The person who conducts an auction. The auctioneer introduces each lot offered for sale, acknowledges bids, and announces whether lots are sold or unsold and their final bid prices.
The catalogue gives a description of the property, details on how to view each property and the General Conditions of Sale. These are prepared by the auctioneer, stating the basis on which the auction is carried out.
Actual Completion Date
The date when completion takes place or is treated as taking place for the purposes of apportionment and calculating interest.
Monies provided by a lender to a borrower and secured on the property as part of the mortgage debt.
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Contract.
Annual Percentage Rate (APR)
Total cost of a loan expressed as an annual interest rate. Provides a useful comparison when reviewing mortgage offers.
Fee charged by some lenders to cover the administration of arranging a loan.
Amount that is overdue in relation to a mortgage, which may result in action by a lender to repossess the property.
Price set by the seller of a property as what they hope to achieve.
The transfer of property from one party to another.
Interest rate set by the Bank of England. Variable mortgage rates will often be adjusted depending on movements in the Base Rate.
Person who is obligated to repay a loan in accordance with its terms.
Defines the point at which a contract may be terminated.
Temporary loan designed to enable a property to be purchased prior to the sale of another property.
Insurance policy required by lenders and designed to cover any structural damage to a property.
Detailed report on the construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Structural Survey.
Person who is buying a property. Also known as the Purchaser.
Buy To Let Mortgage
Mortgage designed for buying property that is intended to be rented to tenants for investment purposes.
Amount borrowed on which interest is calculated.
Occurs where successive buyers and sellers are linked together and reliant upon one another to complete the transaction.
Security in the property relied upon by lenders when granting a mortgage.
Suitably qualified person employed to carry out a Building Survey and report on the condition of a property.
Property pledged as a guarantee for the repayment of a mortgage.
Fee payable to an estate agent, usually a percentage of the property price, for providing certain services in relation to the transaction.
Point at which legal transfer of property ownership passes from one party to another.
Conditions Of Sale
Terms defined in the contract and which determine the rights and duties of the buyer and seller.
Optional insurance policy designed to cover any loss or damage to possessions within the property.
Rules of law developed from the decisions of the courts of common law.
A promise contained in a deed (e.g. a clause in a lease). The person with the benefit is the covenantee, the person with the burden is the covenantor.
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Agreement.
Occurs when two or more parties attempt to purchase the same property and the Vendor will sell to the first party to exchange contracts.
Suitably qualified person, such as a solicitor or licensed conveyancer, who handles the legal and administrative process of transferring ownership of a property from one person to another.
Legal work involved in transferring the ownership of a property from one person to another.
Legal requirement incorporated in the Title requiring the owner to do, or not to do, something in relation to the property.
Declaration Of Trust
Document that binds joint owners of a property with regards to the division of proceeds upon completion.
Legal documents proving ownership of a property. Also known as Title Deeds.
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Down Payment.
Title deeds are paper documents showing the chain of ownership for land and property. They can include: conveyances, contracts for sale, wills, mortgages and leases.
A creation or transfer of an estate or interest in land.
Property that stands alone and has no shared walls with an adjoining property.
Property that is either newly built or has been recently refurbished.
Third party costs relating to transaction paid out by solicitor to cover items such as Stamp Duty, Land Registry, Local Authorities, etc.
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Deposit.
Early version of the contract, which is then edited by the acting solicitors.
Early Redemption Charge
Financial penalty charged by some lenders if the borrower terminates a mortgage early.
Final copy of a document prepared by a solicitor for signing by the parties.
Owner's financial interest in a property, calculated as the difference between the market value of a property and the balance outstanding on the mortgage.
Property professional who markets property on behalf of sellers and who charges a fee, usually a percentage of the selling price.
Exchange of Contracts
Point at which signed contracts confirming the intention to transfer ownership between buyer and seller are physically exchanged and the parties become legally bound by the terms.
The character and duration of a person’s ownership of land.
An agreement to create or convey a legal estate, e.g. an option to purchase.
The process of signing, witnessing and attesting a deed.
Failed Valuation Survey
When a lender turns down a mortgage application as a result of the surveyor's report.
First Time Buyer
Buyers who have not previously purchased a property.
Fixed Rate Mortgage
Mortgage with interest rates initially 'fixed' for a defined period.
Fixtures & Fittings
Those non-structural items in a property that should be listed to be included in a sale.
Absolute ownership of both a property and the land on which it stands indefinitely.
Full Structural Survey
Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor.
Where the seller has agreed an offer in principle on a property but then subsequently accepts a higher offer from another party.
Where the buyer has made an offer that has been accepted but then subsequently reduces the offer immediately prior to exchange of contracts.
A guide price gives an indication of the price that the property is expected to sell for and what the vendor is hoping to achieve.
Fee paid annually by the leaseholder to the freeholder in order to occupy the land on which a property stands.
Person responsible for repaying a debt if the borrower defaults as required by some lenders.
Home Buyers Report
Standard report conducted by a surveyor on behalf of a buyer to assess value and condition of a property, highlighting major defects.
Home Condition Report
An optional part of a Home Information Pack (HIP) providing an objective report on the condition of a property.
Home Information Pack
Previously compulsory information pack compiled by the seller prior to marketing a property for sale, containing specified information relating to a property.
House Price Index
Statistical method of representing changes in house prices over time.
HMO (Home Of Multiple Occupation)
An HMO is a House in Multiple Occupation, usually known as a flat let house.
Grant made by a local authority towards the cost of repairing or improving a property.
Independent Financial Advisor (IFA)
Qualified person using specialised knowledge of the marketplace to select financial products to best suit the needs of their client.
Engagement by a property owner of an estate agent to market the property.
Fee charged by a lender on the borrower, calculated as a percentage of the amount borrowed.
Interest Only Mortgage
Mortgage where only the interest charges are repaid initially. Monthly instalments are invested by the buyer and repaid in full at the end of the term.
Two estate agents jointly instructed by a seller to market a property, usually with a shared fee.
Equal holding of a property between two or more persons. If one party dies, their share passes to the survivor(s).
Government department responsible for recording ownership of land in England and Wales. Searches will be requested from the Land Registry by conveyancers as part of any property transaction.
Land Registry Fees
Set fee paid to Land Registry to register ownership of a property.
Possession of a property owned by another party for a specified time period. Also known as Tenancy.
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Tenancy Agreement.
Ownership and right to occupy a property by way of a lease agreement for a given period of time subject to an annual payment of rent to the owner of the freehold.
The vendor's solicitors prepares a legal pack containing copies of all the legal papers that you and your solicitor are likely to need to make an informed decision about your lot.
The pack should include (where applicable) copies of: special conditions of sale, title deeds, leases, office copy entries, searches, replies to pre-contract enquiries.
Institution that lends funds in order to assist the borrower with a property purchase.
Lender's Legal Fees
Fees incurred by the lender in arranging a mortgage and that are passed on to the borrower.
Someone who holds the lease on a property. Also known as Tenant.
Someone who grants a Lease on a property. Also known as Landlord.
Building that has been registered as being of special interest and has preservation orders on it.
Loan To Value (LTV)
Percentage indicating the ratio of a mortgage loan on a property to its market value.
Local Authority Search
Enquiries made to the local council regarding any future development issues that might affect a property and/or the surrounding area.
An obligation imposed on a landowner in favour of a third party’s interest in the land.
Registrable under the Land Charges Act 1972 at the Land Charges Registry if relating to unregistered land. Registrable at the Land Registry if relating to registered land.
Freehold or leasehold ownership of land.
A limited category of interests in land specifically stated by s.1(2) Law of Property Act 1925 to be legal interests, e.g. a legal mortgage.
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Service Charge.
Property that comprises a portion of a larger building, usually arranged over more than one floor with its own private entrance.
Long-term loan used to fund the purchase of a property where the property is held as security.
Mortgage Agreement in Principle (MAP)
Lender's expression of intent to provide funding subject to certain conditions being met.
Document containing the terms and conditions of a loan secured on a property.
Mortgage Indemnity Guarantee (MIG)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Premium (MIP) and Additional Security Fee.
Mortgage Indemnity Premium (MIP)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Guarantee (MIG) and Additional Security Fee.
Standard variable interest rate quoted by all mortgage lenders. This varies in accordance with the Bank of England base rate.
Period of time over which a mortgage will be repaid.
Report commissioned by the lender to assess property value and determine maximum amount to be loaned on the security of a property.
Where two or more estate agents are instructed by a seller to market a property. Only the agent who introduces a successful purchaser is paid.
Occurs when the market value of a property falls to a value less than the mortgage loan balance.
NHBC (National House Building Council) Scheme
A guarantee offered on some newly built homes for structural defects occurring within a specified time after construction.
Indication from a potential buyer of a willingness to purchase a property at an indicated price. An offer is not legally binding in England and Wales and can be withdrawn or changed at any time prior to exchange of contracts.
Open Market Value
Price that a property would likely achieve if it were available for sale.
Initial set of questions regarding a property that the seller must answer prior to exchange of contracts.
Public Liability Insurance
Insurance to cover the injury or death or damage to property of anyone on or around your property.
Person who is buying a property. Also known as the Buyer.
Previews Or Exhibitions
A viewing of the property held in advance of the auction. Pre-auction viewings are open to the public and may be attended at no charge.
Completion of the full and final repayment of a mortgage.
Amount required to fully repay a mortgage including interest and any penalties.
Redemption (Equity Of)
The right of the mortgagor to redeem the property on repayment of the mortgage.
Land of which the ownership and third party rights affecting it are registered (recorded) at the Land Registry. Proof of ownership is via reference to the Land Registry entries.
Mortgage with monthly repayments consisting of capital combined with interest.
Occurs when mortgage payments are in arrears and a lender chooses to take possession of the property that secures the loan.
Property occupied for private or domestic purposes.
Amount held back by a lender until certain specified works have been completed.
Sale Agreed Or Sold Subject To Contract (STC)
An offer has been agreed by both buyer and seller and is now in solicitors hands.
Legal agreement between a seller and an estate agent.
Enquiries made to the local authority and Land Registry for determining whether any matters adversely affect the property or the surrounding area.
Property used to secure the mortgage loan.
Person who is selling a property. Also known as the Vendor.
Property where one side wall is shared with an adjoining property.
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Maintenance Charge.
Where only one estate agent is instructed exclusively by a seller to market a property.
Sole Selling Rights
Where one estate agent has exclusive rights to market a property and is entitled to a fee irrespective of how the property is sold.
Professionally qualified legal expert who prepares documents for the sale or purchase of a property.
Stamp Duty Land Tax (SDLT)
Tax paid to the government by a buyer on the purchase of a property.
Standard Variable Rate (SVR) Mortgage
Mortgage with interest rates that fluctuate at the discretion of the lender based on market conditions.
Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Building Survey.
Flat consisting of one principle living area comprising both cooking and sleeping facilities with a separate bathroom/shower room.
Subject To Contract
Term used to indicate a provisional agreement prior to exchange of contracts that is not yet legally binding.
Report on the condition of a property.
Qualified expert who carries out the survey of a property.
Possession of a property owned by another party for a specified time period.
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Lease Agreement.
Person (or entity) who is entitled to occupy a property under the terms of a Tenancy Agreement.
Tenants In Common
An optional method of shared home ownership (not necessarily in equal shares). If an owner dies, the owner's interest in the property is passed to the owner's heirs, rather than to the other owners of the property.
Conditions on which a property is held, i.e. whether it is freehold or leasehold.
Property where both side walls are shared with adjoining properties.
Legal right to ownership of a property.
Status of a property from the point at which a seller has accepted an offer until exchange of contracts.
Land of which the ownership is not registered (recorded) at the Land Registry.
Ownership is proved by reference to title deeds.
Provision of a property that has been vacated by any previous occupants.
Survey conducted by a suitably qualified professional such as a Chartered Surveyor to establish an estimate of the current market value of a property.
Variable Base Rate
Basic rate of interest charged on a mortgage that may change due to market conditions.
Person who is selling a property. Also known as the Seller.
Failure to reach the reserve price or insufficient bidding. The auctioneer will withdraw the property from the auction.
Income generated from a property expressed as a percentage of the property value.