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Education > Jargon Buster > D to H

 

WELCOME to D to H. Part of the most comprehensive Property Investing
JARGON BUSTING DICTIONARY on the internet!

D | E | F | G | H

 

D

DEAs (Domestic Energy Assessors) - Authorised agent for the provision of Energy Performance Certificates

Debit - On a closing statement, an amount charged; that is, an amount that the debited party must pay.

Debt - An obligation to repay a specified amount at a specified time.

Decision in Principle (DiP) - 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. See also AiP

Deed - A written instrument that, when executed and delivered, transfers ownership of a property.

Deed of Covenant – An agreement in a deed to transfer income from one person to another in a tax efficient way

Deed Restriction - Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions, for example, they may limit the density of buildings, dictate the types of structures that can be erected or prevent buildings from being used for specific purposes or even from being used at all.

Default - A failure to abide by the terms of the contract. Generally, 30 days after the due date if payment is not received, the mortgage is in default.

Deposit - Monies used as a down-payment on a property.

Deposit Protection Scheme – Government backed scheme for holding a tenants deposit.

Depreciation - Loss in value of an asset over its estimated useful life.

Developer - One who puts land to its most profitable use, through the construction of improvements.

DG (Double Glazing) – Refers to windows, Two parallel layers ofglass separated by an air space. Reduce heat loss and reduce noise

DiP (Decision 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. (see AiP)

Direct Debit – Method of payment for bills via a bank account.

Disbursements – Fees that must be paid to third parties by solicitors

Discretionary grounds for possession - Grounds that may be cited in possession proceedings which allow the court discretion as to whether or not to grant possession – there are also eight mandatory grounds for possession. The discretionary grounds cover circumstances in which: the landlord has offered suitable alternative accommodation on the same basis; there are rent arrears but not of more than eight weeks (or two months if the rent is paid monthly, or one quarter if paid quarterly); there are persistent and continuing rent arrears; the tenant has breached the terms of the tenancy agreement; the tenant has neglected or damaged the property or has sub-let; the tenant is causing nuisance to neighbours; furniture supplied under the tenancy agreement has been damaged; the accommodation is linked to employment which has ended; and the tenant has knowingly or recklessly made false statements on which the landlord has relied in granting a tenancy

Discount Rate - A unit of measurement used for various loan charges; one point equals 1 percent of the amount of the loan, discounted from the published bank standard variable rate, for an agreed period from the start of the mortgage.

Discounted Rate Mortgage - Mortgage in which the lender agrees a fixed discount off the normal variable rate for a guaranteed period of time. Likely to include penalties for early redemption

Domestic Energy Assessors (DEAs) - Assessor authorised to provide Energy Performance Certificates

Down payment - Amount of payment in cash by the purchaser. Traditionally the down payment on a building was 10 percent of the total price.

DPC (Damp Proof Course) – Horizontal barrier in a wall of impermeable material to prevent moisture rising by capillary action

DPM (Damp proof Membrane) – Impervious material such as mastic asphalt or a plastic sheet.

DSS (Dept of Social Security) - Benefit Agency responsible for maintenance payments to the unemployed. Often avoided by many landlords as payments are always in arrears and there is a mountain of red tape.

DTi (Department of Trade and Industry) – Government department concerned with business and enterprise. A good resource for impartial advice

Due Diligence - Process of making your own efforts to ensure that all is well with the property, before finalising a purchase. This involves getting comparables for both rentals and property values in the area.

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E

EA (Estate Agent) – Traditional method of property purchase. Agent for the selling, renting or management of homes, land and other buildings

Early Repayment Charge (ERC) - A charge payable of some mortgages to cover administration costs in the event of a loan being repaid before the due date

Easement – A right, such as a right of way, which the owner of one property has over an adjoining property

EDMO (Empty Dwelling Management Order) – May be made by a local housing authority in respect of dwellings which are wholly unoccupied. An interim EDMO is an order made by a local housing authority to enable it to take steps for the purpose of securing that a dwelling becomes and continues to be occupied. A final EDMO is made in succession to an interim EDMO for the purpose of securing that a dwelling is occupied

EOT (End of Terrace) – The dwellings at either end of a row or terrace of houses

EPC (Energy Performance Certificate) - An assessment of household energy usage and the extent to which this can be lowered if the recommendations of the Domestic Energy Assessor preparing the certificate are adopted. Certificates giveproperties a rating from A to G presented graphically in much the same style as used for fridges, washing machines and other white goods. Dwellings offered for sale must have an EPC that is not more than 12 months old, and from October 2008 rental properties must have a certificate that is not more than 10 years old.

ERC (Early Repayment Charge) - A charge payable of some mortgages to cover administration costs in the event of a loan being repaid before the due date.

ERRP (Estimated Restricted Realisation Price) – The amount of money expected to be achieved within a short timescale from the sale of assets by auction, tender or private treaty. Crisis figure. Replaced forced sale value. See also BMV

Easements - A right of use over the property of another. A utility easement, for example, allows the utility company to lay its lines across another’s property.

Emerging market - Countries where the property market is in its infancy. Usually no mortgages would be available, roads and infrastructure would not be the best. Not easy to get there (no cheap airlines yet). Possibly waiting for entry into the Euro Zone

Encroachment - An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighbouring private or public land, or a building extending beyond the building line

Encumbrance - Anything, (a mortgage, tax, or judgment lien, an easement, or a restriction on the use of the land) that may diminish the value or use and enjoyment of a property

Endowment Mortgage – An endowment life assurance policy is often linked to a mortgage. Throughout the term of the mortgage, payments made by the borrower cover only the interest due on the loan. The capital sum borrowed is paid back in one lump sum at the end of the loan period, using the proceeds from an endowment policy taken out at the start of the mortgage

Energy Performance Certificate (EPC) - Assessment of household energy usage. Certificates give properties a rating from A to G and the extent to which this can be lowered if the recommendations of the Domestic Energy Assessor preparing the certificate are adopted. Dwellings offered for sale must have an EPC that is not more than 12 months old, and from October 2008 rental properties must have a certificate that is not more than 10 years old.

Equity - The difference between the value of your property and the amount you actually borrowed.

Equity Release – Schemes that allow you to release some of the equity, or the value you have built up in your home, without having to move out or sell it on the open market. Also used to refer to straightforward re-mortgaging

Escrow Account - A bank account into which funds are paid, usually for the fulfillment of a mortgage or other contract.

Eviction - A legal process to oust a tenant for possession of property. In most cases it is illegal for a landlord to evict a tenant without a court order. The Protection from Eviction Act 1977 also protects tenants against being forced to leave a property through harassment, such as threats or physical violence, or through withdrawal of services such as disconnecting the electrical supply or refusing to carry out vital repairs

Evidence of Title - Proof of ownership of property; commonly a certificate of title, an abstract of title with solicitor’s opinion.

Exchange of Contracts - Point within conveyancing process at which the agreement between a property buyer and seller for transfer of title becomes binding in law subject to penalties for non-completion.

EXCL – Abbreviation. Excluding, not including

 

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Sell or let your house privately 

 

F

Fair Rent - Rent determined by the Rent Service applicable to Regulated tenancies, set according to local market conditions but any increase capped, except where the landlord has made substantial improvements to the property, by a formula based on the rate of inflation.

F/F (Fully Furnished) – Accommodation offered in ready to move into condition including basic furniture, white goods and equipment

FH (F/H) - See Freehold –

Fiduciary – (US) Having a duty to act primarily for another’s benefit. If you hire a solicitor, for example, that solicitor has a duty to act primarily for your benefit.

Fittings – Fittings are items that are not attached to the building or land and are not subject to the sale unless they are specifically included, carpets and curtains would normally be thought of as fittings

Fixed Rate Mortgage - A mortgage in which the interest rate is fixed for an agreed period (usually from two to ten years) and it is unaffected by changes in the lender’s variable rate. This means that during the specified period, you will know exactly how much your monthly repayments will be. At the end of this period, interest on the mortgage will be charged at the lender’s variable rate. Early repayment charges may apply on these types of arrangements

Fixer-Upper - A house which can be put on the market again after some renovation.

Fixtures - Items on a building or land that have become part of the building or land and are therefore included in the sale.Usually physically fixed to the building such as shelves or fitted wardrobes. If it is firmly secured onto the land or house and cannot be removed without damage, then it qualifies as a fixture.

Flexible Mortgage – A mortgage in which you can vary the amount you pay each month and take breaks from your monthly payments

Flip - Purchase and immediate resale of property.
Foreclosure – (US) The sale of mortgaged property. Proceeds from the sale go to the lien-holders as repayment.

Freehold - A term which means that you own the property and the land it is situated on outright.

FSA (Financial services Authority) – The main regulatory body for the UK financial services industry


FSBO (For Sale by Owner) - Popular acronym

FSS (Full Structural Survey) – The most comprehensive, and therefore most expensive, survey available. A full structural survey will examine all aspects of a property Normally reserved for properties of unusual construction, older properties that have been heavily extended.

FTB (First Time Buyer) – A potential house buyer who has not previously owned a property or who has never taken out a mortgage before; often qualifies for various discounts and incentives

Further Advance - A secured loan to release equity in your house or investment property for any purpose.

 

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G

Gazumping – Gazumping is where a seller agrees to accept your bid and then accepts a higher bid from someone else

GCH (Gas Cental Heating) – Provides Gas powered warmth to the interior of a building from one point to multiple rooms

GDN (Garden) – Abbreviation. Outside space belonging to a property

GDV (Gross Development Value) – Final end value of a development or project before deductions

Gearing - To use a small amount of money to control a large amount of money/asset. US=Leverage.

Gentrification - Socio-economic rise of a neighbourhood.

GF (G/F) Ground Floor – The floor of a building nearest to the level of the ground around the building

Good Repair - Landlords are required by law to keep their rented properties in good repair and fit for human habitation. Should local environmental health officers rule that a tenant’s health has been affected by the state of living conditions, he or she would be able to claim compensation from your landlord

Grace Period - A period of time granted by a loan agreement during which default will not occur even though payment is overdue. Your contract may or may not have a grace period.

Gross Return – The money made before the subtraction of the costs of doing business.

Gross ROCE (Gross Return On Capital Employed) – Amount of financial return calculated from the annual rent minus the annual interest cost divided by the property purchase price and acquisition costs.

Gross Yield – Amount of financial return from property before expense deductions. Calculated by dividing the annual rental figure by Property purchase costs (including Acquisition costs)
Grounds for Possession - There are 17 grounds for possession laid down in the Housing Act 1988, as amended by the Housing Act 1996, that may be cited in possession proceedings against a tenant. Eight are Mandatory grounds for possession where the court is obliged to award possession provided the landlord has complied with the procedure set out in the Housing Acts and has served the tenant with the appropriate notices. Nine are Discretionary grounds for possession allowing the court some leeway. Landlords may also seek possession when it can be demonstrated that a tenant is no longer using the accommodation as his or her principal home.

Ground Rent - Rent payable by the owner of a leasehold property to the freehold owner.

Guaranteed Rental Income – Amount of income guaranteed per year, make sure you are aware of who is the guarantor, for how long and that there is a contract in place

 

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H

Harassment - Harassment is a criminal offence under the Protection from Eviction Act 1977. The term refers to acts by a landlord or agent likely to interfere with the peace or comfort of a tenant or involve the withdrawal or withholding of services reasonably required for occupation. Harassment can include the landlord continually visiting the property or contacting tenants

HB (Housing Benefit) - A means tested welfare benefit administered by the local authority providing eligible tenants assistance in meeting the cost of rent. Helps tenants to pay their rent. All tenants, Council, Housing Association or private, are eligible to apply. How much help anyone receives depends on their income and other circumstances. See also LHA

Higher Lending Charge (HLC) - A charge due on a mortgage with a LTV greater than 90%.

HIPs - Home Information Packs. Introduced by Government in 2007. Compulsory for every residential property put on the market.
House of Multiple Occupation (HMO) – A property occupied by five or more people. Each local council has different licensingrequirements, See HMO

Housing Associations – A provider of social housing

Housing Authority – Section of Local Government responsible for social housing

HLC (Higher Lending Charge) - charge due on a mortgage with a Loan To Value (LTV) greater than 90%.

HMO (House of Multiple Occupation) – Entire houses or flats let to three or more tenants from two or more households who share a kitchen, bathroom or toilet. Houses converted entirely into bedsits or other accommodation that is not self contained, let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities. Converted houses containing one or more flats which are not wholly self contained, occupied by three or more tenants who form two or more households and who share facilities; and buildings which have been converted entirely into self contained flats but the conversion did not meet the standards of the 1991 Building Regulations and more than one third of the flats are let on short term tenancies In each case the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as such tenants’ only or main residence. The same will apply to properties which are used as domestic refuges. All of these properties could be subject to mandatory or additional licensing requirements, but not all are. It is only those that are of three or more storeys with five or more occupants that in fact require a licence In Scotland there is a separate definition and all must be licensed

HMO Licensing - In England and Wales a requirement that larger houses in multiple occupation should be licensed by local authorities came into effect on 6 April 2006. After 3 July 2006 it is an offence to let properties caught by the mandatory licensing provisions of the Housing Act 2004 without a licence which could incur fines of up to £20,000

Homes and Communities Agency - The new housing and regeneration agency for England. They provide funding for affordable housing and improve quality of life by raising standards for the physical and social environment.

Housing Ombudsman - The Ombudsman can investigate complaints and other matters referred to them and make recommendations for action. They are independent of the people and organisations they investigate. They are impartial. Tenants can refer matters to the Housing Ombudsman,

HPI (House Price Index) - Published by Land Registry using sales data collected on all residential housing transactions in England and Wales.

HVAC (Heating, Ventilation & Air Conditioning) - Acronim

 

 
 

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