Jargon buster

Additional questions raised by the buyer's conveyancer, often as a result of queries from the purchaser or matters revealed in the survey.

A payment to cover the costs of processing a property rental application. This is paid by the tenant and will be taken from the initial monies once the tenancy starts.

A payment to cover the costs of drawing up a tenancy agreement. This is usually shared between the landlord and tenant.

A perforated brick used for ventilation, usually under timber floors and in roof spaces.

The total cost of a loan, taking into account interest charges, arrangement fees and other costs, shown as a percentage.

The Association of Residential Lettings Agents

The Association of Residential Managing Agents

A fee charged by a mortgage lender or broker to arrange a loan.

A potential serious health hazard. If you suspect your insulation may use this fibrous mineral, seek specialist advice immediately.

Used on floors and flat roofs, this black, tar like substance is waterproof and very sticky.

To transfer the right or interest in a property from one person to another.

The person to whom the right or interest of property is transferred.

The person who transfers a right or interest of property to another person.

A commonly used rental agreement where the tenant is an individual and net rent does not exceed £25,000 a year. It covers a fixed period, so both parties know the date the property will be vacated.

A pipe or tube fitted to a gas appliance that lets the fumes escape.

A cheque drawn directly from a bank's funds, and not from an individual's account.

The standard rate of interest charged by a mortgage lender, which may increase or decrease, usually as a result of movements in the Bank of England base rate.

The person or people who are entitled to receive the proceeds of a sale.

Where one of the parties bound by a contract fails to keep to the contract's terms and conditions.

A building block made from concrete and cement.

A temporary loan enabling someone to purchase a property before selling his or her existing one.

Insurance to cover damage to or loss of your home and its contents, in the event of a fire, for example.

A full inspection of a property and a report on its condition, highlighting any problems and work that will be needed. Most suitable for older or poorly maintained properties, or a property you intend to alter or extend.

A mortgage where part of the monthly payment reduces the outstanding mortgage balance and part repays the interests on the loan.

A mortgage where there is an upper limit on the interest rate, but a flexible lower limit, if a lender increases or reduces interest rates.

An external wall which has been constructed with a gap of about 50mm (2 inches) between the two leaves of brick or block work.

Insulating material used to fill the cavity wall - usually polystyrene beads, foam or rockwool.

A strengthening piece of metal fixed between the inner and outer leaves of a cavity wall.

A standard form used by solicitors to request the mortgage or loan funds from the lender.

A situation that occurs when a buyer needs to complete the sale of his or her existing property, to complete the purchase of his or her new property.

A loan that is secured against land or property.

The meeting at the start of the tenancy where the inventory and condition of the property are agreed. The tenants will meet with an independent inventory clerk, the landlord or the landlord's representative.

The meeting at the end of the tenancy when the inventory and condition of the property are agreed. As with check in, the tenants will meet with an independent inventory clerk, the landlord or the landlord's representative.

Money that is available instantly without clearing through the banking system. This is usually cash, bank automated credit or a banker's draft. .

A solicitor's bank account where a client's money is held.

A type of boiler than gives you heating and hot water on demand, without using hot and cold water tanks.

The final stage of the legal work, when the ownership of the property passes to the buyer.

The date that a contract takes effect and property ownership passes from seller to buyer.

A list of all the financial aspects of a transaction. Produced by a solicitor, it sets the costs against the money being received and shows whether money needs to be paid to the client or whether a shortfall needs to be made up before completion.

A written and signed agreement between buyer and seller.

When a seller deals with more than one prospective buyer and exchanges contracts with whichever is ready first.

The term used to describe the legal process of transferring a property from one owner to the next.

A person qualified to undertake conveyancing. Either a solicitor or licensed conveyancer.

An agreement contained within a contract or a deed that binds somebody to do something (or not to do something).

A company used by the letting agent to verify the creditworthiness of prospective tenants.

Also known as dilapidations. This means damage to the rented property caused by tenants, or because the terms of the tenancy agreement have been breached.

A layer of waterproof material incorporated into a wall to prevent dampness rising or encroaching around doors and windows.

A formal document that is executed by a formally witnessed signature.

The documents which prove legal ownership of a property. If a property is mortgaged, the mortgage lender usually holds them.

The amount of money paid by the buyer on exchange of contracts, usually 10% of the purchase price.

When renting

Money set aside to cover any problems that may arise if the tenants break the terms of the tenancy agreement. Paid by the tenant, this is normally equivalent to six week's rent and held by the agent in a stakeholder capacity.

Fees paid by the buyers solicitor on his or her behalf, which include stamp duty, land registry and search fees.

The first version of the contract of sale issued by the seller's conveyancer to the buyer's conveyancer.

A fungus that can cause serious damage to a property by attacking structural timbers. Flourishes in moist, damp, poorly ventilated areas.

A charge made by a mortgage lender if the borrower repays all or part of the mortgage before a certain date, often the end of a special deal, on a fixed rate or capped rate, for example.

A right granted over a property or land e.g. a right of way.

A mortgage where only the interest is paid to the lender and monthly premiums are paid into an endowment policy, with the aim to pay off the mortgage at the end of the specified term.

A certificate that outlines the energy efficiency and environmental impact of a property. It gives standard ratings for energy efficiency and carbon emissions, rated from A (the most efficient) to G.

Questions from the buyer's conveyancer, often about survey or property information forms.

A report on the land uses of a property and its surroundings now and in the past. This will indicate the likelihood of contamination or pollution.

The difference between the value of a property and the amount of mortgage outstanding.

A sum of money payable in advance of any insurance claims being settled.

The point at which the signed contracts to buy and sell are exchanged along with your deposit, to legally commit the buyer and seller to the transaction, at the price agreed.

Also known as a renewal. This is used to extend or continue the tenancy after the original term has expired.

A mortgage where the rate of interest is fixed for an agreed period of time.

Fixtures are items that have become part of a building or land and are therefore included in the sale. Fittings are not attached to the building or land and so are not included in the sale unless otherwise agreed. The seller will complete a fixtures and fittings form that will confirm what is included in the sale, what isn't included, and what is for sale separately.

When renting

All the fixtures and fittings in a property including furnishings and floor, ceiling or wall coverings.

A section of material (normally metal or cement) used to prevent water from penetrating a roof joint.

A mortgage where the lender will allow increased or decreased payments, during its term. Before decreased payments are allowed, overpayments would normally have been made.

A pipe or duct attached to an appliance to allow fumes to escape.

An underground structure that supports a building or wall.

When a property belongs entirely to the owner (subject to any mortgage or lease granted).

The owner of a freehold property.

Financial Services Authority

A certificate that states all gas applicances, pipework and flues are safe. It's a legal requirement for all landlords, and must be carried out every year by a CORGI registered engineer.

The swelling of clay subsoil which has absorbed water. This can cause foundations to move upwards.

The charge made by the freeholder to the leaseholder as a right to occupy a property.

A third party who undertakes to ensure mortgage payments are made in the event that the borrowers fail to do so.

When renting

If a tenant defaults and fails to follow their obligations in the tenancy agreement, then a Guarantor will take responsibility.

An opening into a drain, normally at ground level, which receives water from downpipes and wastepipes.

An insurance policy that a mortgage lender may insist upon, to cover the amount of loan above a certain percentage of the property's value. The higher lending charge insurance policy has a one off premium, normally payable by the borrower.

A homebuyer's survey includes more detail than a mortgage valuation. The report will tell you about any major problems with the building, the general condition of the parts of the building that are reasonably accessible, anything that could be expensive to fix in the future and any suspected problems like timber infestation or damp that might need specialist advice.

A homebuyer's survey includes more detail than a mortgage valuation. The report will tell you about any major problems with the building, the general condition of the parts of the building that are reasonably accessible, anything that could be expensive to fix in the future and any suspected problems like timber infestation or damp that might need specialist advice.

An independent referee for people who have a dispute about the deposit at the end of the tenancy.

Insurance against any aspect of a property transaction such as an adverse search result or breach of planning/building regulations. This will not solve any problems but it will provide compensation

The monies paid by a tenant before the tenancy starts. This will cover the deposit, rent for the first month or quarter, tenancy agreement fee and check in charge.

The charges that a mortgage lender levies on a loan, as a percentage of the amount outstanding.

A mortgage where the monthly payments to the lender cover the interest only. Most borrowers with an interest only mortgage have a savings vehicle to repay the amount of the loan at the end of the mortgage term.

A list of all fixtures and fittings in a property. This is put together by the landlord or an inventory clerk before the tenancy starts.

Where the landlord or tenant means more than one person, they all take responsibility for their obligations, both individually and together.

Where a property is purchased under joint tenancy. Normally used for husband and wife purchases because if one of the owners dies then his/her share will automatically pass to the survivor. Also see tenants in common.

Includes anyone owning an interest in the property that would be entitled to possession of the property at the end of the tenancy. Where there are joint owners the obligations and liabilities are joint and several.

The Government department responsible for registering ownership of land.

A fee paid to the Land Registry to register the ownership of a property.

Movement of earth, clay etc downwards, because of heavy rain or a lack of soil stability.

A legal document the freeholder issues, which grants tenure for a given period of time. It sets out the insurance and repair obligations of both parties.

Owning a property for a fixed term but not the land on which it stands.

The person who takes, or is granted a lease.

Detailed information about the property being sold, provided by the managing agent or freeholder. Includes details of service charges, ground rent and general expenditure, insurance and any maintenance works in hand or proposed.

A horizontal structure beam found over a window or door opening.

The amount of mortgage, shown as a percentage of the property's value

Application made to the Local Authority for information that may affect a property. The search results will show such things such as planning restrictions and whether the roads have been adopted and are maintained by the Council.

An amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of the building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as service charge.

Company formed to manage obligations of a lease such as insurance and repairs.

Firm employed by a landlord or management company to arrange practical maintenance and general management of a building.

The ground level access point to a drain, with a removable cover. Also known as an inspection chamber.

Costs incurred by the freeholder for repairing and maintaining common parts of a building, occupied by leaseholders.

An amount of money advanced by a lender, normally a bank or building society, secured on a property.

The mortgage lender, ie bank or building society.

The person who takes out a mortgage.

A legal document confirming the terms of a mortgage and the lender's interest in the mortgaged property

The standard variable interest rate quoted by all mortgage lenders, which is normally related to the base rate set by the Bank of England.

The length of time a mortgage runs for and by when it should be repaid in full.

A basic survey of a property to assess its value and suitability for a mortgage. Mortgage lenders will insist on this before a loan is advanced.

National House Builder Council. The NHBC provide a ten year insurance policy on the main structure of new properties.

Certified copies of entries on a register title, provided by the Land Registry.

A layer of concrete below a timber ground floor above the external ground level.

Official consent/approval from a Local Authority for works undertaken on a property.

A layer of plaster sandwiched between heavy paper. Widely used for walls and ceilings.

The initial enquiries, about the property being sold, raised by the buyer's conveyancer at the early part of the conveyancing process.

The address of the property. This means all parts of the building belonging to the landlord, including boundaries, fences and garden unless they are specifically excluded. If the property is part of a building, like an apartment, this also includes the common parts.

Also known as a Protocol Form the PIF is provided by the seller's solicitor and is completed by the seller. It forms part of the conveyancing process and covers such matters as boundaries, services, guarantees for work carried out and planning consents.

This is issued by the HIP provider and forms part of the HIP. It must be completed by the seller to provide details relating to the ownership of the property and information about services such as council tax banding and the utilities.

The horizontal beam supporting the rafters in a roof space.

One of the sloping roof beams that form the shell of the roof.

When a mortgage is repaid in full

Information that tells the landlord about the suitability of tenants to take on the tenancy. References could come from a credit reference agency or from employers, banks or previous landlords.

Refinancing a property where by either moving a mortgage to another lender and/or increasing the amount of loan to raise capital.

The covering of cement or plaster on a wall.

A mortgage where the monthly payments are a combination of interest and capital, to repay the whole amount by the end of the agreed term.

Where a mortgage lender retains part of a loan, pending satisfactory completion of specified works.

Moisture in a wall that rises from below ground level. This can then lead to decay in the fabric of the wall.

This document tells the buyer the address of the property, who the seller is and whether it is freehold or leasehold.

A document that works alongside the inventory to explain the condition of the property at check in and check out.

The final smooth finish of a floor, usually laid in cement or concrete.

Enquiries raised by a buyer's conveyancer to a local authority to establish any issues likely to affect the property now or in the near future.

Amount paid by a leaseholder as a contribution to the cost of maintaining and repairing the structure of a building and its insurance. Can be paid to a landlord, managing agent or management company. Also known as maintenance charge.

Movement of a building or structure, often as a result of age. This is acceptable within certain limits.

When a seller chooses only one estate agent to sell his or her home.

When the letting agent holds the deposit in a designated account and at the end of the tenancy deductions can only be made with the written consent of both parties.

A tax paid by the buyer of a property, where the purchase price exceeds £125,000. The rate of SDLT ranges from 1% to 4% of the purchase price, depending upon the value of the property bought. Rate of SDLT on properties sold ranging from £125,000 to £250,000 is 1%. 3% is payable for properties between £250,001 and £500,000 and 4% for properties £500,001 over. However for first time buyers only SDLT is not payable on houses worth up to £250,000.

When renting

If the income from a short term let (up to seven years) residential tenancy or lease is above the SDLT threshold, then the landlord will have to pay this.

A lightweight wall that has a timber frame and is lined with plasterboard.

The term used to confirm that the transaction is not yet legally binding. The sale of a property is always agreed ‘subject to contract’.

What happens when the ground moves downwards.

The electronic transfer of funds from one bank account to another.

The legal document that sets out everything about the tenacy, including the people involved, the terms and everyone's obligations.

Means any one or more individuals or companies named as tenant in the tenancy agreement, who pay rent for the use of property or land. Where there are joint tenants the obligations and liabilities are joint and several.

Where a property is purchased jointly with equal or unequal shares. Normally used for husband and wife purchases because if one of the owners dies then his/her share will automatically pass to the survivor. Also see joint tenants.

The type of ownership, either freehold or leasehold.

This is the total amount of time the tenant is living at the property, including any extensions or renewals.

Land Registry deed transferring ownership to a buyer. This will be prepared by the buyer's solicitor.

Documents proving legal ownership of the property. Generally held by the Land Registry.

The legal document that transfers the ownership of a property from the seller to the buyer.

A further lease of whole or part of a property granted by an existing tenant.

Placing a stronger foundation underneath the weaker original one.

Seller.

When timber decays because of damp conditions.

General term for insects attacking timber within a property.