Navigate the complex world of property terminology with our comprehensive glossary. Search, filter, and explore the terms you need to understand.
Showing 15 terms
Initial mortgage offer from lender indicating how much they're willing to lend. Not legally binding but shows sellers you're serious.
Example: We got an AIP for £180,000, which helped when making offers on properties.
Buying property for less than its current market value. This often occurs when sellers need quick sales due to financial difficulties, repossession threats, or divorce.
Example: A property valued at £250,000 purchased for £200,000 would be considered a BMV purchase.
The final stage where ownership legally transfers. Money is transferred, keys are handed over, and the property becomes officially yours.
Example: Completion is set for Friday when you'll get the keys and can move in.
The legal process of transferring property ownership from seller to buyer. Handled by solicitors or licensed conveyancers.
Example: Our conveyancer is handling the legal work and should have the contracts ready soon.
The upfront payment required when purchasing a property. Typically 5-20% of the property value, with higher deposits getting better mortgage rates.
Example: For a £200,000 property, a 10% deposit would be £20,000.
When contracts are exchanged and the sale becomes legally binding. After exchange, neither party can pull out without financial penalties.
Example: The exchange of contracts happened today, with completion scheduled for two weeks from now.
The portion of the property you own outright, calculated as property value minus outstanding mortgage balance.
Example: With a £200,000 property and £150,000 mortgage, you have £50,000 in equity.
Complete ownership of both property and land indefinitely. With freehold, you have full control over the property and can make alterations without seeking permission.
Example: When you buy a house outright, you typically get freehold ownership, meaning you own the property and the land it stands on forever.
When seller accepts higher offer after already accepting yours. This can happen before exchange of contracts and is buyer's nightmare scenario.
Example: We were gazumped when another buyer offered £20,000 more just before exchange.
When buyer reduces offer just before exchange. This puts pressure on sellers who may have already committed to purchasing another property.
Example: The buyers tried to gazunder us by £15,000 just days before exchange.
Ownership of property for a fixed term, with land owned by freeholder. You have the right to use the property for the lease duration but don't own the land.
Example: Most flats are sold as leasehold properties, typically with leases of 99 years or more.
The ratio of your mortgage amount to the property value, expressed as a percentage. Higher LTV ratios typically mean higher interest rates.
Example: If you buy a £200,000 property with a £150,000 mortgage, your LTV is 75%.
A loan specifically used to purchase property, secured against the property itself. The property can be repossessed if payments are missed.
Example: We got a 25-year mortgage with a fixed interest rate for the first five years.
Property has an accepted offer but contracts not yet exchanged. The sale can still fall through until contracts are exchanged.
Example: The house is marked SSTC, but the estate agent said there are still some surveys to complete.
Buying a share of property and paying rent on the remaining share to a housing association. Allows you to get on property ladder with smaller deposit.
Example: We bought 25% of the property through shared ownership and pay rent on the other 75%.