Jargon Buster

A removal company, like Alltranz Ltd, can take away a lot of the stress and hassle associated with moving, giving you more time to focus on other important tasks. 

 

ENERGY PERFORMANCE CERTIFICATE (EPC) 

An EPC is intended to inform potential buyers or tenants about the energy performance of a property and gives an indication of how much the energy bills will be. 

 

EXCHANGE OF CONTRACTS 

This is when both parties swap and sign the contracts and are committed to the property transaction. 

 

FIXED-RATE 

This is a type of mortgage where the interest rate stays the same for a predetermined ‘fixed’ period. 

 

FREEHOLD 

This is the type of ownership where you own the building and the land it sits on. 

 

INTEREST RATES 

The interest rate is the amount a lender charges a borrower. It is a percentage of the amount loaned. 

 

LAND AND BUILDING TRANSACTION TAX (LBTT) (SCOTLAND) 

LBTT replaced Stamp Duty in Scotland in 2015. It is the tax you pay when purchasing land or property and the rate payable is subject to the total purchase cost. 

 

LAND REGISTRY 

A Government database which registers the ownership of land and property in England and Wales. 

 

LEASEHOLD 

As a leaseholder you own the property but not the land it sits on – you may own a flat but not the building. There will be a time period placed on the lease which will need to be renewed with the landowner (freeholder). 

 

LOAN-TO-VALUE (LVT) 

LVT is a percentage figure that reflects how much your mortgage borrowing is in relation to how much your property is worth. 

 

MORTGAGE 

A legal agreement between you and a lender to buy a property. Money is loaned with interest and the lender has the right to take the property if you fail to repay the borrowed sum. 

 

SOLD SUBJECT TO CONTRACT (SSTC) 

This means that the homeowner has accepted an offer from a buyer but the paperwork is not completed. 

 

SOLD SUBJECT TO CONCLUSION OF MISSIVES (STCM) 

In Scotland, if an offer on a house is accepted this is legally binding and there is no ‘subject to contract’ stage. The concluding paperwork (known as missives) may occasionally fall through hence the term “Subject to Conclusion of Missives”. 

 

STAMP DUTY 

It is the tax you pay when purchasing land or property and the rate payable is subject to the total purchase cost. 

 

STANDARD VARIABLE RATE (SVR) 

This is the interest rate that will be charged once your introductory mortgage deal finishes. 

 

UNDER OFFER 

This means the seller has accepted an offer from the buyer but the contracts have not yet been exchanged. 

 

AGREEMENT IN PRINCIPLE 

An AIP is an estimate of how much money you can borrow from a mortgage lender and is the first step to getting a mortgage. It can be used as evidence that you have the funds in place to make an offer on a property. 

 

ANNUAL PERCENTAGE RATE OF CHARGE (APRC) 

The total rate of interest you’ll pay for a mortgage’s entire duration. It serves as an easy way to compare mortgage deals. Lower rates usually mean a better deal. 

 

BANK RATE 

The bank rate or base rate is the rate of interest which is charged by a central bank (Bank of England) while lending loans to commercial banks. It is generally used as a benchmark for the interest rates banks charge when lending money. 

 

BRIDGING LOAN 

A temporary short-term loan which enables a buyer to purchase a property before selling their existing property. Think of it as a short-term mortgage. 

 

COMMONHOLD 

A system of ownership that allows you to own the freehold of individual flats, houses and non-residential units in a building or on an estate. Unlike leasehold, you own the freehold to your particular property and all property owners collectively help manage the upkeep of the building. 

 

COMPLETION DATE 

The last step in the process of buying and selling. It is the day when ownership is transferred from seller to buyer, the buyer gets the keys to the property and the seller must move out. 

 

CONVEYANCER 

A solicitor who specialises in the transferring of homeownership. They are required if you are using a mortgage and will go through the legal process to transfer the property ownership from one person to another. 

 

COVENANT 

A covenant is a rule, or set of rules, about what you can and cannot do as the owner of a property or piece of land. If you purchase the property with an existing covenant, it means you have agreed to these rules. 

 

DEEDS 

Documents that show who owns the title of a property or piece of land.