- Signed document to send back to the Lender to accept
a mortgage offer
- To increase, to grow.
Interest - Interest that has been charged
but not yet paid.
- Measurement of land - 43,560ft2, or 4,840yrds2,,
or 4,047m2, or 0.4047 hectares.
Costs – Additional financial costs
incurred when buying property other than the purchase
price of the property, Eg Solicitors disbursements,
(Annual Equivalent Rate) - The interest paid
from current, deposit or savings accounts
Addendum - An addition to a written document (e.g.,
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
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
– The amount of money the lender is prepared
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
- 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
(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.
- A contract you buy from an insurance company, to
guarantee you an annual income for a period of time
(eg. Ten years).
(APT) – Self contained unit that occupies
only part of a building
– Surveyors qualification, two year
training for Assessment of Professional Skills
(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
- 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.
- 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.
- Something that belongs to someone else. (An example
would be the right to cross through someone else’s
(Apartment) – Self contained unit that
occupies only part of a building
(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
(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
(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.
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.
(Advertising Standards Authority) - Independent
regulator for advertisements, sales promotion and
direct marketing in the UK
(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.
(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
of Home Information Pack providers (HIPP)
- Association for those involved in the production
of Home Information Packs
of Residential Letting Agents – See
- 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.
- The imposition of a tax, charge or levy, usually
according to established rates
- To transfer your property rights, or contract
rights, to another person.
Contract - This is where you can sell on
a property before the completion date
- To transfer something from one party to another.
The transfer in writing of interest in a bond, mortgage,
lease or other instrument.
- 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.
- A party who assigns or transfers something to another.
If you are assigning interest in your note to an investor,
you are the assignor.
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
(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
(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
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
(Bankers Automated Clearing System) - Method
of transferring funds between bank accounts.
- 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
- Court proceedings to relieve certain debts
of a person or business unable to pay its debts.
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
- One who benefits from the act of another, such as
the beneficiary of an insurance policy, or the beneficiary
of a deed of trust.
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
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
(Below Market Value) – Price agreed
below the Open market value, usually expressed as
(Bank of England) – Central bank of
the United Kingdom. Responsible for the issue of banknotes,setting
interest rates and monetary policy. See also MPC
fide - Made in good faith; good, valid, without
fraud; e.g., a bona fide offer
Fee - Another term meaning arrangement fee.
Booking fees may be charged upfront.
Council – Self governing administrative
divisions within a county
(B/R) – Bedroom. Abbreviation. Room
intended for sleeping
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
/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
- Acts as an intermediary for a fee or commission.
See also Mortgage Broker
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
(Building Society) - Financial institution,
owned by its members, offering banking, other financial
services and Mortgage lending
– Bullshit. Abbreviation. Usually spoken
by those with no knowledge of the subject they are
(Buy to Let) – Purchase of property
for the sole purpose of providing a rental income
(Buy To Sell) – Purchasing strategy.
Resale for profit usually involving some level of
Inspection - Examination of a building by
an independent authorised home inspector.
Insurance - Compulsory insurance for a mortgaged
property which pays the cost of rebuilding or repairing
your house if it is damaged or destroyed.
Permit – (US) Written governmental
permission for the construction, alteration or demolition
of an improvement, showing compliance with building
codes and zoning ordinances.
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
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
(Compound Annual Growth Rate) - The year
over year growth rate of an investment over a specified
period of time
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.
- Accumulated wealth; a portion of wealth
set aside for the production of additional wealth.
Appreciation - How much the property is likely
to increase in value over the course of 12 months.
Expenditure – Cash outlay or Investment
in permanent assets such as land & property
Gains Tax – A tax payable on profits
from the sale of assets or property other than your
& 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
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.
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
Rate - The rate of return a property will
produce on the owner’s investment.
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
– Liquid Asset. Money in the form of
currency such as coins or banknotes.
– Rebate to purchaser upon completion of a sale
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
- 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.
on Cash Return – See ROI
emptor - A Latin phrase meaning “Let
the buyer beware.” Under this doctrine, the
buyer is duty bound to examine the property being
– Entries on the Land Register to protect third
(County Court Judgement) - A judgement for
debt recorded at a County Court which will show up
when a credit check is undertaken
(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
Heating - Provides warmth to the interior
of a building from one point to multiple rooms
(Capital Gains Tax) – The Tax payable
on profit from the sale of an asset
- sequence of buyers and sellers all trying to buy
a property while at the same time potentially trying
to sell their own property.
Free – First Time Buyer or Purchaser
who has no need to sell in order to buy new property.
(Clearing House Automated Paying System) –
Same day transfer of funds between accounts
- 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
Certificate - Certificate issued to the lender
by the Land Registry that gives evidence of the lender’s
charge over the property
- 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.
Rent - Payment made on freehold land to the
original freeholder forever. Differs from ground rent
because ground rent normally has a limited period
Title - Title that is not encumbered or burdened
with “clouds”, such as mortgages or unpaid
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.
(Cash on Cash Return) – The ratio of
annual before-tax cash flow to the total amount of
cash invested, expressed as a percentage
- Graduate with an accredited degree in a property
- 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
- 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.
- Form of tenure created by Commonhold and Leasehold
Reform Act 2002 in which leaseholders in a property
jointly hold the freehold through an association
Let – Agreement with a business to
provide property for use by delegates of said company.
- Properties used in an appraisal that are substantially
equivalent to the subject property.
- The last step in purchasing a property where the
ownership title is transferred from the vendor to
Annual Growth Rate (CAGR) - The year over
year growth rate of an investment over a specified
period of time
– (US) Individual ownership of a dwelling
unit and an individual interest in the common areas
and facilities serving a multi-unit project.
- Something of value, usually money, that
is the inducement of a contract. Any right, interest,
property, or benefit accruing to one party.
Insurance - Insurance to cover the cost of
personal belongings, that are in your property, against
anything detrimental that could happen
- A condition that must be fulfilled before
a contract can be regarded as legally binding.
Fund – Pot of money for emergency use,
used to cover extra unplanned expenses
- binding agreement made between seller and buyer
that commits the parties to proceeding
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
- The document used to transfer property from one
party to another.
- 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.
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.
- 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
Tax – Tax levied on households by local
authorities; based on the estimated value of the property
and the number of people living in it
Council – The elected governing body
of a County
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
- 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.
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
(Continuing Professional Development) - Mmaintain,
improve and broaden professional knowledge, skills
and competence in order to develop throughout a person's
(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.
- 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.
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.
Check – An enquiry made on the credit
history of an applicant, normally by reference to
one of the major credit agencies
Reference Agency - Companies that can provide
credit information about individuals (including CCJs)
and confirmation of addresses included on the electoral
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.
Score - Your credit standing in a digital
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