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Acceptance - Signed document to send back to the Lender to accept a mortgage offer

Accrue - To increase, to grow.

Accrued Interest - Interest that has been charged but not yet paid.

Acre - Measurement of land - 43,560ft2, or 4,840yrds2,, or 4,047m2, or 0.4047 hectares.

Acquisition Costs – Additional financial costs incurred when buying property other than the purchase price of the property, Eg Solicitors disbursements, Fees etc

AER (Annual Equivalent Rate) - The interest paid from current, deposit or savings accounts
Addendum - An addition to a written document (e.g., a contract).

Additional Security Fee - Upfront free charged by lenders in order to protect themselves against default on the loan. This fee is usually charged on mortgages over 75% LTV. See also Mortgage Indemnity Guarantee (MIG)

Administration Fee – This usually refers to a fee you pay to a financial services firm for a service or product. All regulated firms have to give you details of administration and other fees before you buy a service or product. This can also refer to charges on an investment fund or for setting up a loan or mortgage

Advance – The amount of money the lender is prepared to lend

Adverse Credit - refer to people with a poor credit history. This may include but is not limited to, things such as county court judgments (CCJ’s), bankruptcy, mortgage arrears, Individual voluntary agreements (IVA’s) and credit card or other borrowing arrears or defaults

Agent - One who acts or has the power to act for another. (US) A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent.
Agricultural Covenant -This is a very specific planning condition that allows the building of a residential dwelling on the condition that it is occupied by a person employed or associated with working the land in someway


AIP (Agreement in Principle) - An indication of the likely outcome of a loan application. Not a formal offer, but includes a credit check with a credit reference agency and an assessment of your ability to repay the loan amount requested.

Annuity - A contract you buy from an insurance company, to guarantee you an annual income for a period of time (eg. Ten years).

Apartment (APT) – Self contained unit that occupies only part of a building

APC – Surveyors qualification, two year training for Assessment of Professional Skills

APP (Accelerated Possession Procedure) – A cheap and straightforward way for landlords to gain possession of their property without a court hearing. Unless it considers a hearing is necessary, the court makes its decision based solely on documents provided by the landlord and tenant. This procedure can only be used where there is a written tenancy agreement and the tenant has been given a Section 21 notice. The procedure cannot be used to claim for arrears of rent.

Appraisal - An estimate of the quantity, quality or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value.

Appreciation - An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.

Appurtenance - Something that belongs to someone else. (An example would be the right to cross through someone else’s property).

APT (Apartment) – Self contained unit that occupies only part of a building

APR (Annual Percentage Rate) - Annual percentage rate of the total charge for credit. This must be disclosed to borrowers by lenders (laid down by the Financial Services Authority Mortgage Conduct of Business rules) of working out the true interest rate. By law, the APR has to be shown by all lenders alongside their quoted interest rates for each mortgage term, to enable potential borrowers to make comparisons between offers made by different lenders

ARLA (Association of Residential Letting Agents) - Professional association for letting agents which operates code of practice and bond scheme that protect the clients of ARLA members

ARM (Adjustable-Rate Mortgage) - A mortgage that consists of two terms, the first of which has a fixed rate of interest, and the second an adjustable rate.

Arrangement Fees - Charged to arrange a loan on certain products. Usually applied to loans where a special interest rate applies e.g. fixed or capped rates.

ASA (Advertising Standards Authority) - Independent regulator for advertisements, sales promotion and direct marketing in the UK

ASB (Anti-Social Behaviour) - Is behaviour which goes against what is generally acceptable to society. This can include criminal acts as well as less serious behaviour such as general un-neighbourly behaviour.

ASBO (Anti-Social Behaviour Order) - Allows a Council and/or a Housing Association to apply to the court to stop an individual behaving in a particular way and/or from going to particular places. ASBO's can be issued against any individual over 10 years old. Breaching the order can carry a 5 year prison sentence.

Association of Home Information Pack providers (HIPP) - Association for those involved in the production of Home Information Packs

Association of Residential Letting Agents – See ARLA

Assets - Things that have a value and which can be expressed in money terms. 'Fixed assets' cannot be readily converted into cash, such as properties which take time to sell. Current assets include cash and bank balances and those assets which are readily convertible into cash e.g. debts due.

Assessment - The imposition of a tax, charge or levy, usually according to established rates

Assign - To transfer your property rights, or contract rights, to another person.

Assignable Contract - This is where you can sell on a property before the completion date

Assignment - To transfer something from one party to another. The transfer in writing of interest in a bond, mortgage, lease or other instrument.

Assignee - The person to whom an agreement or contract is assigned. If you are assigning interest in your note to an investor, that investor would be the assignee.

Assignor - A party who assigns or transfers something to another. If you are assigning interest in your note to an investor, you are the assignor.

Assured Tenancy - A form of tenancy introduced under the 1988 Housing Act for property let out as a separate dwelling and used as the tenant's only or main home. An assured tenancy will generally allow the tenant to stay in occupation until either he or she decides to leave of the landlord obtains a possession order

AST (Assured Shorthold Tenancy) – A form of tenancy that assures the landlord right to repossess the property at the end of the term specified in the tenancy agreement, which can be for any length of time. To gain possession the landlord must service a notice under section 21 of the Housing Act 1988 giving a minimum of two months’ notice. Landlords may also apply for possession during the course of a tenancy on various ‘grounds for possession’ . Some give the court no option but to grant possession. Any new tenancy started after 28 February 1997 is automatically an assured shorthold tenancy unless otherwise specified

ASU (Accident Sickness and Unemployment Insurance) – Insurance to cover mortgage payments of the borrower in the event of an accident, sickness or involuntary unemployment. See MRRI

ATC (Assessment of Technical Competence) – Surveyors qualification, needed for RICS membership

Average Clause - This is a condition included in some home insurance policies that limits what you can claim if you are under-insured. For example, if the contents of your home are worth £40,000 but you insure them for just £20,000 you are under-insured by 50%. If your contents are damaged, destroyed or stolen, the most you will get from your insurance company is 50% of the total damage

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BACS (Bankers Automated Clearing System) - Method of transferring funds between bank accounts.

Bankers Draft
- Different to a cheque in that the money has already been debit straight from your account, therefore the person receiving the bankers draft is confident the money is safe, whereas with a cheque the money would not be safe until it has been cleared. There is normally an administration fee to obtain a bankers draft, as well as you having to give a notice period, normally of at least 24 hours
Bank of England's Monetary Policy Committee (MPC) - Set UK base interest rates or Repo rate, thus a benchmark for other interest rates such as personal loan, mortgage interest rates. Although Government has the power to instruct the Bank on interest rates for a limited time period. The MPC meets monthly and comprises the Governor of the Bank, the two deputy governors, the Bank's chief economist, the executive director for market operations and four external members appointed directly by the Chancellor

Bankruptcy - Court proceedings to relieve certain debts of a person or business unable to pay its debts.

Beneficial Owner - This is the person owning land and who is therefore entitled to it for his/her own benefit. This is different from say a trust etc that may hold land for the benefit of someone else

Beneficiary - One who benefits from the act of another, such as the beneficiary of an insurance policy, or the beneficiary of a deed of trust.

Benefit Overpayment - Is a deduction from existing housing benefit payments. Used to recover payment from tenants. Such recoveries occur for a variety of reasons and can impact upon rental income, creating a shortfall if such benefits are paid direct to landlord. Housing benefit overpayments are not rent arrears and cannot be included in possession proceedings via the court.

Block Management - This refers to the agents that manage/act on behalf of the freeholds and leaseholds, normally for a block of flats or apartments. The will usually arrange things like, the insurance,tending the garden, general cleaning and re-decoration

BMV (Below Market Value) – Price agreed below the Open market value, usually expressed as a percentage

BOE (Bank of England) – Central bank of the United Kingdom. Responsible for the issue of banknotes,setting interest rates and monetary policy. See also MPC

Bona fide - Made in good faith; good, valid, without fraud; e.g., a bona fide offer

Booking Fee - Another term meaning arrangement fee. Booking fees may be charged upfront.

Borough Council – Self governing administrative divisions within a county

BR (B/R) – Bedroom. Abbreviation. Room intended for sleeping

Breach of Contract - A default or failure to abide by the terms of the contract without legal excuse; for example, failure to make a payment when it is due.

Break /Release Clause - These are sometimes used in conjunction with fixed term tenancies. For example: in an AST after the first 6 months is over when it comes to renewal, either party (landlord or tenant), will often request that a break/release clause be entered into the agreement, if they are unsure whether they will want to continue renting the property for the duration of the next 6 months. This clause will normally allow either party to get out (normally with about 2 months notice) before the end of the new term

Broker - Acts as an intermediary for a fee or commission. See also Mortgage Broker

Bridging Loan - A short-term, high interest loan used in house purchase to bridge the gap between the date on which you have to pay for your new home and the date you receive money from the sale of your old home

BS (Building Society) - Financial institution, owned by its members, offering banking, other financial services and Mortgage lending

BS – Bullshit. Abbreviation. Usually spoken by those with no knowledge of the subject they are speaking about

BTL (Buy to Let) – Purchase of property for the sole purpose of providing a rental income

BTS (Buy To Sell) – Purchasing strategy. Resale for profit usually involving some level of refurbishment.

Building Inspection - Examination of a building by an independent authorised home inspector.

Buildings Insurance - Compulsory insurance for a mortgaged property which pays the cost of rebuilding or repairing your house if it is damaged or destroyed.

Building Permit – (US) Written governmental permission for the construction, alteration or demolition of an improvement, showing compliance with building codes and zoning ordinances.

Building Regulations – legislation that relates to the standards of premises or construction. One or more could apply at any given time. Set out the requirements with which the individual aspects of building design and construction must comply in the interests of the health and safety of building users, energy conservation, and access to and use ofbuildings

Buy To Let Mortgage - A mortgage used to buy property, which is to be used solely for the purposes of renting out to a third party. Usually based on projected rental income, rather than multiples of the borrower’s income

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CAGR (Compound Annual Growth Rate) - The year over year growth rate of an investment over a specified period of time

Capped Rate Mortgage - A limit placed on adjustments to the interest rate or payment level as protection for borrowers. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.

Capital - Accumulated wealth; a portion of wealth set aside for the production of additional wealth.

Capital Appreciation - How much the property is likely to increase in value over the course of 12 months.

Capital Expenditure – Cash outlay or Investment in permanent assets such as land & property

Capital Gains Tax – A tax payable on profits from the sale of assets or property other than your home

Capital & Interest Mortgage - monthly payments pay off the initial loan and the interest charged. At the end of the loan term, the entire debt will be repaid with nothing outstanding. See Repayment Mortgage

Capital Repayment - There are 2 ways of repaying a mortgage - capital repayment or interest only. With a capital repayment mortgage, the capital and interest elements of the loan are paid off with each monthly instalment, so that the balance reduces over time. At the end of the mortgage term the balance
will be nil.

Capital Rest Period - This is to do with the regularity with which the Lender calculates the outstanding balance on any give mortgage and hence the size of the monthly repayments. This figure is normally calculated annually, monthly or daily

Capitalisation Rate - The rate of return a property will produce on the owner’s investment.

Capped Rate - This is a rate of interest that you agree to with your lender that will be the maximum you will pay during a set period of time. Often the first 1-3 years, but it can be for longer. The interest rate cannot go any higher than this capped rate during this specified period of time

Cash – Liquid Asset. Money in the form of currency such as coins or banknotes.

Cashback – Rebate to purchaser upon completion of a sale

Cash Back Mortgage - Type of mortgage where the lender will refund back a sum of money to the borrower on completion either be a percentage of the loan or previously agreed lump sum. May be tied to lender for specified period at a specific rate

Cashflow - The net disposable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results.

Cash on Cash Return – See ROI

Caveat emptor - A Latin phrase meaning “Let the buyer beware.” Under this doctrine, the buyer is duty bound to examine the property being purchased.

Caution – Entries on the Land Register to protect third party interests.

CCJ (County Court Judgement) - A judgement for debt recorded at a County Court which will show up when a credit check is undertaken

CEAR (Consumers, Estate Agents and Redress Bill) – Government Act to make provision for the establishment of the National Consumer Council. In order to make provision for the handling of consumer complaints by certain providers; to make provision requiring certain providers to be members of redress schemes in respect of consumer complaints; to amend the Estate Agents Act 1979; to make provision about the cancellation of certain contracts concluded away from business premises

Central Heating - Provides warmth to the interior of a building from one point to multiple rooms

CGT (Capital Gains Tax) – The Tax payable on profit from the sale of an asset

Chain - sequence of buyers and sellers all trying to buy a property while at the same time potentially trying to sell their own property.

Chain Free – First Time Buyer or Purchaser who has no need to sell in order to buy new property.

CHAPS (Clearing House Automated Paying System) – Same day transfer of funds between accounts

Charge - the means by which lenders in England, Wales and Northern Ireland enforce their rights to a property. The charge is recorded at the land registry. A primary mortgage will normally be secured by a first charge.

Charge Certificate - Certificate issued to the lender by the Land Registry that gives evidence of the lender’s charge over the property

Chattels - Items of moveable personal property, such as animals, household furnishings, money, jewelry, motor vehicles, and all other items not permanently affixed to real property that can be
transferred from one place to another.

Chief Rent - Payment made on freehold land to the original freeholder forever. Differs from ground rent because ground rent normally has a limited period

Clear Title - Title that is not encumbered or burdened with “clouds”, such as mortgages or unpaid taxes.

Closing Statement - A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction.

COCR (Cash on Cash Return) – The ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage

Cognate - Graduate with an accredited degree in a property related subject

Collateral - The property is used as a guarantee that you will be able to pay the lender the loan. If you aren’t able to repay this loan the property could be sold by the lender in order to recoup the money they originally paid you

Commission - Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Commonhold - Form of tenure created by Commonhold and Leasehold Reform Act 2002 in which leaseholders in a property jointly hold the freehold through an association

Company Let – Agreement with a business to provide property for use by delegates of said company.

Comparables - Properties used in an appraisal that are substantially equivalent to the subject property.

Completion - The last step in purchasing a property where the ownership title is transferred from the vendor to the purchaser.

Compound Annual Growth Rate (CAGR) - The year over year growth rate of an investment over a specified period of time

Condominium – (US) Individual ownership of a dwelling unit and an individual interest in the common areas and facilities serving a multi-unit project.

Consideration - Something of value, usually money, that is the inducement of a contract. Any right, interest, property, or benefit accruing to one party.

Contents Insurance - Insurance to cover the cost of personal belongings, that are in your property, against anything detrimental that could happen

Contingency - A condition that must be fulfilled before a contract can be regarded as legally binding.

Contingency Fund – Pot of money for emergency use, used to cover extra unplanned expenses

Contract - binding agreement made between seller and buyer that commits the parties to proceeding

Contract Race – Multiple potential buyers want to buy the same property. Instigation by either seller or one or more buyers. The winner of the race will be the first buyer to reach exchange of contracts

Conveyance - The document used to transfer property from one party to another.

Conveyancing - The legal process of creating or dealing with an interest in land that is a right of ownership in or over land, such as a freehold or leasehold.

Cooperative Housing - An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate.

CORGI - The Confederation for the Registration of Gas Installers maintains the register of competent gas installers, inclusion on which is a legal requirement for businesses and self-employed people working on gas fittings or appliances. CORGI also investigates gas safety related complaints from the public. It is a requirement under the Gas Safety (Installation and Use) Regulations 1998 for use landlords to have gas appliances and flues checked annually by a Corgi registered engineer. Soon to change to GAS SAFE

Council Tax – Tax levied on households by local authorities; based on the estimated value of the property and the number of people living in it

County Council – The elected governing body of a County

Court Service - Publicly available service that provides online access to various forms that landlords may require when commencing proceedings for possession. The website also has guidance on such subjects as dealing with squatters. Forms available to download include N5 for use in possession claims, and N5B for use in use of the accelerated possession procedure

Covenant - A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, leases and contracts for deed.

Covenant of Quiet Enjoyment - The covenant implied by law by which a landlord guarantees that a tenant may take possession of rented premises and that the landlord will not interfere in the tenant’s use of the property

CPD (Continuing Professional Development) - Mmaintain, improve and broaden professional knowledge, skills and competence in order to develop throughout a person's working life

CPO (Compulsory Purchase Order) - Subordinate legislation under powers given to Local Authorities in existing legislation. Allows certain bodies which need to obtain land or property to do so without theconsent of the owner. Compensation will include the value of the property and costs of acquiring and moving to a new property.

Credit - On a closing statement, an amount entered in a person’s favour – either an amount the party has
Paid or an amount for which the party must bereimbursed.

Credit Bureau - Firms that collect information on individuals and businesses for the purpose of providing the information to subscribers. There are three nationwide private agencies that produce credit reports and credit scores on private consumers:,Eg. Equifax, and Experian.

Credit Check – An enquiry made on the credit history of an applicant, normally by reference to one of the major credit agencies

Credit Reference Agency - Companies that can provide credit information about individuals (including CCJs) and confirmation of addresses included on the electoral register

Credit Report - A report from a credit bureau that provides a credit rating and other financial data: credit transactions, records of outstanding debts, foreclosure or bankruptcy.

Credit Score - Your credit standing in a digital format.

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