Whether you've bought or sold a property before or not, there's lots of lingo to get your head around. Hopefully my explanations of these terms will help you.
This is a service with no advice, just carried out the orders of a customer.
When the lender turns down your mortgage application after reading the surveyor's valuation report.
Related: Can I contest my mortgage valuation?
This is a mortgage which has a 'fixed' rate of interest for a set period of time normally between 1-5 years.
Any items not included or included in the sale of the property. For instance curtains, carpets, wall lights, cooker etc. These are generally agreed on a document sent by the sellers solicitor to the seller to complete, this document is then passed over to the buyers solicitor for the buyer to read.
These are mortgages that allow you to pay them off in a flexible way, one example of this are mortgages that allow you to make overpayments so that you can pay off your mortgage early.
A flying freehold is formed when part of a freehold property overlaps onto a different freehold property or land.
This is when you have complete ownership of a piece of land and the property that resides on it.
This describes a borrower who has a good credit history and who is not self-certifying his income.
A landlord must make sure that a gas safety check is carried out prior to letting out any property. Then it needs to be completed annually and a copy of the record must be given to the tenant. This check must be carried out by an authorised CORGI register engineer.
Gazumping is when a vendor accepts an offer from one person only to later reject it in favour of a higher offer they receive from someone else.
This is a term used when a buyer reduces his offer moment before exchange.
This is the amount of money you have against the amount of a loan. You can be ‘highly geared’ which is owning very little of a property with a very big loan or ‘lowly geared’ which is when you have very little debt against an asset. Also see ‘negative gearing’.
This means that someone has gifted you the deposit on a property. This would normally have been a developer on a new build property you are buying. In practice it is an incentive to encourage you to buy the property as is similar to ‘cashback’ on a mortgage. Don’t be too fooled there is after all no such thing as a free lunch.
Ground rent only applies to leasehold properties and is a sum paid annually to the Freeholder of the property, by the leaseholder. There are normally service charges also attached.
Related: Understanding leasehold and freehold
This is a person who agrees to guarantee that they will repay a loan or debt if you default on the payment of it. A typical example of this is when a parent guarantees the mortgage will be paid on their son/daughter’s first property purchase.