jargon buster
AST
AST stands for "Assured Shorthold Tenancy" it basically gives a landlord the right to reclaim their property back after a specified period of time. At the moment AST's tend to be for a period of 6 months.
Buy-to-let
The practice of purchasing a property for investment purposes. The investment is intended to provide a combination of income, in the form of rent received from a tenant, and capital growth, in the form of an increase in the property's market value.
Commercial Property
Land and buildings which are either zoned, designed or intended for use by businesses such as retailers and office workers. Property other than that used for residential purposes (see residential property).
Completion
The point in a property transaction at which the legal transfer of a property from the seller to the buyer is finalised (contracts will have previously been exchanged − see exchange). The buyer can take possession of the property from the completion date.
Deeds
The legal documents regarding a property.
Disbursements
This is another word for the legal costs involved with purchasing a property.
EPC
Energy performance certificate − An asset rating which illustrates the energy performance of a building in terms of CO2 emissions. It is also accompanied by recommendations for cost effective improvements.
Freehold
Complete ownership of a piece of land and the property that is on it.
Ground Rent
This is rent paid annually by the leaseholder of a property to the owner of the freehold. Usually it is paid to the owners of the land on which the property/properties are built.
HMO
House in Multiple Occupation − Properties most likely to be affected by this new law are student properties and bedsits where individual tenants share kitchens and bathrooms. Properties that full into this category are subject to more rules and regulations than the average property.
Home Information Pack (HIP)
Also known as a Sellers Pack or HIP this is a mandatory Survey to be produced by a home owner (4 bedrooms or more) or selling agents via a home inspector before a property can be put on the open market. The aim is to help improve the process of buying and selling a home, it is part of the conveyancing process and will include detailed information about a property including energy performance (EPC).
Leasehold
Holding a "leasehold" gives you the right of possession, but not ownership, of a property for an agreed period of time. Ultimately, ownership remains with the freeholder. The duration of the right of ownership is usually a fixed term granted by the lease. The lease will set out details of rents and obligations such as repairs etc. Leasehold is in direct contrast to Freehold where ownership is absolute.
Off Plan
Off plan refers to the sale of a property before it has been built. Developers will typically offer off plan property at a discounted rate below market value, thus it is seen as an attractive incentive for investors.
PCM
Per calendar month.
Stamp Duty
A government tax imposed only on houses valued above £60,000.
Currently the tax is 1% of the property's value, 2.5% for properties valued between £250k − £500k and 3.5% over £500k.
Stamp Duty Land Tax (SDLT)
Stamp duty land tax applies to conveyances and land transfers after 1st December 2003. The rate of duty ranges from nil (less then £120,000) to 4% (over £500,000) based on the VAT inclusive price. SDLT is also payable on rents under leases and premiums payable on leases.
Tenure
The type of ownership of a property such as Freehold or Leasehold
AST stands for "Assured Shorthold Tenancy" it basically gives a landlord the right to reclaim their property back after a specified period of time. At the moment AST's tend to be for a period of 6 months.
Buy-to-let
The practice of purchasing a property for investment purposes. The investment is intended to provide a combination of income, in the form of rent received from a tenant, and capital growth, in the form of an increase in the property's market value.
Commercial Property
Land and buildings which are either zoned, designed or intended for use by businesses such as retailers and office workers. Property other than that used for residential purposes (see residential property).
Completion
The point in a property transaction at which the legal transfer of a property from the seller to the buyer is finalised (contracts will have previously been exchanged − see exchange). The buyer can take possession of the property from the completion date.
Deeds
The legal documents regarding a property.
Disbursements
This is another word for the legal costs involved with purchasing a property.
EPC
Energy performance certificate − An asset rating which illustrates the energy performance of a building in terms of CO2 emissions. It is also accompanied by recommendations for cost effective improvements.
Freehold
Complete ownership of a piece of land and the property that is on it.
Ground Rent
This is rent paid annually by the leaseholder of a property to the owner of the freehold. Usually it is paid to the owners of the land on which the property/properties are built.
HMO
House in Multiple Occupation − Properties most likely to be affected by this new law are student properties and bedsits where individual tenants share kitchens and bathrooms. Properties that full into this category are subject to more rules and regulations than the average property.
Home Information Pack (HIP)
Also known as a Sellers Pack or HIP this is a mandatory Survey to be produced by a home owner (4 bedrooms or more) or selling agents via a home inspector before a property can be put on the open market. The aim is to help improve the process of buying and selling a home, it is part of the conveyancing process and will include detailed information about a property including energy performance (EPC).
Leasehold
Holding a "leasehold" gives you the right of possession, but not ownership, of a property for an agreed period of time. Ultimately, ownership remains with the freeholder. The duration of the right of ownership is usually a fixed term granted by the lease. The lease will set out details of rents and obligations such as repairs etc. Leasehold is in direct contrast to Freehold where ownership is absolute.
Off Plan
Off plan refers to the sale of a property before it has been built. Developers will typically offer off plan property at a discounted rate below market value, thus it is seen as an attractive incentive for investors.
PCM
Per calendar month.
Stamp Duty
A government tax imposed only on houses valued above £60,000.
Currently the tax is 1% of the property's value, 2.5% for properties valued between £250k − £500k and 3.5% over £500k.
Stamp Duty Land Tax (SDLT)
Stamp duty land tax applies to conveyances and land transfers after 1st December 2003. The rate of duty ranges from nil (less then £120,000) to 4% (over £500,000) based on the VAT inclusive price. SDLT is also payable on rents under leases and premiums payable on leases.
Tenure
The type of ownership of a property such as Freehold or Leasehold