Property jargon buster

A summary of the documents and events forming the history of a title to a piece of land.

A conditional offer from a lender indicating how much they may lend you, based on a soft credit check. Also called a Decision in Principle (DIP) or Mortgage in Principle (MIP). Not a guarantee of a mortgage.

A fee charged by a lender to set up your mortgage product. Can be added to the mortgage (but you'll pay interest on it) or paid upfront.

The legal transfer of a lease or other interest in property from one person to another.

The interest rate set by the Bank of England that influences all other UK interest rates, including mortgage rates. Tracker mortgages move directly with this rate.

The legal edge of a property, as defined in the title deeds. May differ from physical features like fences or hedges.

A short-term loan used to 'bridge' a gap - typically when you need to buy a new home before your current one sells.

Insurance covering the structure of the property (walls, roof, floors, fixtures). Your mortgage lender will require this from the day you exchange contracts.

Latin for 'buyer beware'. The principle that the buyer is responsible for checking a property before purchase. This is why surveys are important.

A sequence of linked property transactions where each sale depends on another completing. If one falls through, the whole chain can collapse.

A legal claim over a property, usually by a lender, as security for a debt (e.g. a mortgage). Shown on the title register.

The final legal step in buying a property. Ownership transfers, you pay the remaining purchase price, and you receive the keys.

A financial summary from your solicitor showing all the money due on completion - purchase price, deposit, fees, stamp duty, adjustments.

Insurance covering your belongings inside the property. Separate from buildings insurance.

Documents sent by the seller's solicitor to the buyer's solicitor when a sale is agreed. Includes the draft contract, title documents, and property information forms.

The legal process of transferring ownership of property from seller to buyer. Handled by a solicitor or licensed conveyancer.

A legally binding obligation or restriction attached to a property. A 'restrictive covenant' might prevent you from extending or converting it. A 'positive covenant' requires you to do something (e.g. maintain a shared driveway).

See Agreement in Principle. A conditional indication from a lender of how much they'd lend, before full application.

A formal legal document signed, witnessed and delivered. In property, used to transfer ownership or create charges.

Failure to meet the terms of a mortgage - typically missing payments. Can lead to repossession.

The portion of the purchase price you pay upfront, rather than borrowing. Typically 5-25%. A larger deposit usually means lower loan-to-value, and lenders often price lower-LTV products more competitively.

Third-party costs paid by your solicitor on your behalf - such as search fees, Land Registry fees, and stamp duty.

A fee charged by lenders if you repay your mortgage (or overpay beyond the allowed amount) before the end of a fixed or tracker deal period.

A legal right to use another person's land for a specific purpose - e.g. a right of way, or a right to run pipes under a neighbour's garden.

A report rating a property's energy efficiency from A (most efficient) to G (least efficient). Required by law when selling or letting. Valid for 10 years.

The portion of your property's value that you actually own outright - i.e. the property's value minus the outstanding mortgage balance.

The legally binding point in a property sale. Both buyer and seller sign and swap contracts, and the buyer pays the deposit. Pulling out after this point carries financial penalties.

Items in a property that are not fixtures - typically moveable items the seller can take with them (e.g. freestanding appliances, curtains, garden furniture). See also: Fixtures.

A mortgage where the interest rate is locked for a set period (typically 2-5 years), so your monthly payments stay the same regardless of Bank of England rate changes.

Items permanently attached to a property that are included in the sale unless the seller explicitly excludes them (e.g. fitted kitchen, bathroom suite). See TA10 form for what's included.

A part of a freehold property that overhangs or sits over another property (e.g. a room above a shared passageway). Can complicate mortgage lending.

You own the property and the land it stands on outright, indefinitely. Most houses are freehold.

When a seller accepts a higher offer from another buyer after already accepting yours - before exchange of contracts. Legal in England and Wales.

When a buyer reduces their offer at the last minute, just before exchange - knowing the seller may feel too committed to restart the process.

A legal document confirming that an executor has authority to deal with a deceased person's estate - relevant when buying a property from an estate.

An annual payment made by a leaseholder to the freeholder. Since 2022, new leases in England and Wales cannot charge more than a 'peppercorn' (effectively zero) ground rent.

A person who agrees to cover your mortgage payments if you default. Often a parent helping a first-time buyer.

A UK government scheme (now closed to new applicants) that provided equity loans to help buyers purchase new-build homes with a smaller deposit.

The government organisation in England and Wales that maintains the register of property ownership. Every property sold must be registered.

A mid-level RICS survey (Level 2) that identifies significant defects and urgent issues. More detailed than a Condition Report but less comprehensive than a Building Survey.

Insurance taken out to protect against a specific legal defect in a title or property - e.g. if planning permission was never obtained for an extension. A one-off premium, usually under £300.

A way of co-owning property where each owner has equal shares. If one owner dies, their share automatically passes to the other owner(s), regardless of their will.

The fee payable to HM Land Registry to register the transfer of ownership. Based on the property price.

The process of extending the term of a leasehold title. Properties with fewer than 80 years remaining become harder to mortgage and more expensive to extend.

You own the property for a fixed term (e.g. 99 or 125 years) but not the land it stands on. Most flats are leasehold. When the lease expires, ownership reverts to the freeholder.

A basic assessment carried out for the mortgage lender to confirm the property is worth what you're paying. Not a survey - it won't identify defects. You often pay for it but it's for the lender's benefit.

The ratio of your mortgage to the property's value, expressed as a percentage. A £180,000 mortgage on a £200,000 property = 90% LTV. Lower LTV products are often priced with lower rates than higher-LTV products.

A search submitted to the local council that reveals planning decisions, road adoption status, compulsory purchase orders, and other matters affecting the property.

A document issued by the estate agent confirming the agreed sale price and details of both parties' solicitors. Not legally binding - that comes at exchange.

The legal document you sign giving the lender a charge over your property as security for the loan.

See Agreement in Principle.

When the outstanding mortgage is greater than the current value of your property.

A formal document from your mortgage lender confirming the amount they will lend and on what terms. Comes after full application and valuation.

A clause requiring a buyer to pay the seller additional money if the value of the land increases - for example if planning permission is granted after the sale.

Paying more than your required monthly mortgage amount. Most deals allow up to 10% of the outstanding balance per year without an ERC.

Formal approval from the local council required before building or making significant changes to a property. Check your solicitor's searches for any outstanding applications nearby.

The ability to transfer your existing mortgage deal to a new property when you move. Allows you to avoid an ERC if moving within your deal period.

A form completed by the seller providing details about the property - boundaries, disputes, planning history, services, and more.

Standard forms used in conveyancing: TA6 (property information), TA7 (leasehold), TA10 (fixtures and fittings).

A document from your current mortgage lender stating exactly how much is needed to repay your mortgage in full on a given date.

Taking out a new mortgage deal - either with your existing lender or a new one - usually when your current deal ends. Often used to move to a new rate deal or release equity.

When a lender takes back ownership of a property after a borrower has failed to keep up with mortgage payments.

Royal Institution of Chartered Surveyors. A professional body for surveyors. Surveyors who are RICS members typically display the RICS logo.

A UK government scheme allowing council and housing association tenants to buy their home at a discount.

Enquiries made by your solicitor to official bodies (local council, water company, environment agency) to find out about matters affecting the property that aren't visible from inspection.

A charge paid by leaseholders to the freeholder or managing agent to cover maintenance and upkeep of communal areas and the building structure.

A government scheme where you buy a share of a property (typically 25-75%) and pay rent on the remaining share, with the option to buy more over time ('staircasing').

Money set aside by a block of flats (collected via service charges) to pay for major future works - roof replacement, lift maintenance, etc.

A qualified legal professional who handles the legal side of buying or selling property (conveyancing). You can also use a licensed conveyancer.

A tax paid to HMRC when you buy a property above a certain threshold in England and Northern Ireland. Rates vary based on purchase price, property type, and whether you're a first-time buyer. Wales has Land Transaction Tax (LTT); Scotland has Land and Buildings Transaction Tax (LBTT).

The default interest rate a lender charges once your fixed, tracker, or discount deal ends. Usually the highest rate available - most borrowers explore remortgage options before reverting to the SVR.

The phrase meaning an agreement is not yet legally binding. All negotiations before exchange are 'subject to contract'.

An inspection of a property's condition by a qualified surveyor. Three main types: Condition Report (Level 1), HomeBuyer Report (Level 2), Building Survey (Level 3/Full Structural).

Fixtures and Fittings Form. The seller lists what they're leaving behind and what they're taking. Crucial for avoiding disputes over kitchen appliances and curtains.

Property Information Form. Completed by the seller to declare what they know about the property - including disputes, alterations, and services.

A way of co-owning property where each owner holds a defined share (not necessarily equal). Each owner can leave their share in their will - it doesn't automatically pass to the other owner.

Legal ownership of a property. A 'good title' means there are no defects or disputes over who owns it.

Documents proving ownership of a property. Most titles are now held digitally by HM Land Registry.

A mortgage whose interest rate tracks the Bank of England Base Rate at a set margin above it. Rate rises and falls when the base rate does.

The legal document that transfers ownership from seller to buyer, signed at completion.

Property that has not yet been registered with HM Land Registry. Ownership is proved through title deeds. Rare, but can slow conveyancing.

An assessment of a property's market value. See also: Lender's Valuation.

The seller of a property.

An agreement allowing a utility company to install and maintain cables, pipes or other equipment on private land, in exchange for payment.