If you’re new to the property market, you’ve probably already realised there’s a lot to learn. Whether you’re buying or selling, you will be dealing with professionals who live and breathe property, so it’s easy to get a bit lost if you’re unfamiliar with all the terminology.
At Brookings, we work with all types of clients, from downsizers to seasoned property investors, and if you’re a first-time buyer we try to explain the process and terminology as much as possible.
In this article, we’ve put together some of the most common terms that might cause confusion when you’re starting out in the property market.
Read on for our A-Z of property jargon.
Asking Price
Also known as the guide price, this is the price a property is put on the market for. When a listing states “offers in excess of” it means the owner will only accept more than the price that is set.
Buy-to-Let Mortgage
When you’re buying a property with the aim of letting it to tenants, you will need a buy-to-let mortgage. This is a mortgage product specific to landlords.
Cash Buyer
This term refers to someone who can buy a property without needing a mortgage. If a cash buyer is interested in your property, it’s normally good news. It means they may be able to perform faster than someone who requires a mortgage as there’s no waiting around for a lender to approve the purchase and release the funds required.
Chain
This is when several property transactions must take place at the same time for each sale/purchase to complete. For example, you need to sell your house to buy another, and the person you’re buying from needs to do the same, and so on and so on. The longer a chain, the more risk of one or more transactions going wrong, which could then have a domino effect on all the other sellers and their purchases.
Conveyancer
A conveyancer is someone who specialises in all the legal aspects of a property transaction. A solicitor can also help you through the sale and purchase of the property and can offer additional services too, whilst a conveyancer only deals with property.
Energy Performance Certificate
Abbreviated to EPC, this tells you how energy efficient a property is. The ranking is from A to G (most efficient to least efficient) and takes into consideration factors such as double glazing, boilers, property insulation, solar panels and so on. The higher the rating of a property, the less it will cost to heat and run.
Freehold & Leasehold
The freehold of a property means to own the building and land it is built on indefinitely. Most house owners will be freeholders, and some flat owners will have a share of the freehold. A leasehold means to own a property for a fixed amount of time. The leaseholder will be leasing it from the freeholder. This commonly applies to people who own flats or apartments within a building.
Gazundering
This is when a buyer lowers the offer made on a property just before contracts are exchanged. This may be a reaction to problems that have been identified following a survey, a slow housing market, problems due to a chain collapse or simply buyer’s remorse. Although this is a legal practice, it’s not considered to be very ethical.
Gazumping
If you have made an offer on a property which the seller has accepted, you could be gazumped. This is when another buyer comes in with a higher offer and the seller accepts this instead. Unfortunately, this is a perfectly legal practice.
Mortgage in Principle
Also known as an Agreement in Principle or a Decision in Principle, this is the first step towards securing a mortgage. Once you’ve submitted your application, the lender will come back with an initial amount they are willing to lend.
Permitted Development
There are some types of renovation or building work that require planning permission. This requires professional drawings to be drawn up and submitted to the council. However other works can be done without getting planning permission as they fall under the category of ‘Permitted Development’. This can include extending a building by a small amount or converting a loft into a more usable room. It’s always worth checking the status of any changes you want to make by speaking to planning professionals in the local council for guidance.
Shared Ownership
This is a government backed scheme to make home ownership more affordable for all. It’s when you buy a share of a property from a local authority or housing association and pay a reduced amount of rent for the remainder of the property. Over time, you can buy a larger percentage of the property with the goal being full ownership.
Surveyor
A surveyor is a highly trained professional who will advise you on the condition of a property. They are experts in assessing a building and its value. You’ll need a property survey once you’ve made an offer on a house or flat so that the surveyor can look at structural issues, health and safety problems, and recommend repairs. Mortgage companies also use surveyors to assess the value of a property.
Vendors
This is simply another term for whoever is selling a property.
If you’re looking to buy a property in Romford, Hornchurch, Upminster, Barking, Dagenham, Havering, Barking and Dagenham or Essex, then our sales team at Brookings are more than happy to help.
Give us a call on 020 8591 9088 to discuss your needs.
