Whether you've bought or sold a property before or not, there's lots of lingo to get your head around. Hopefully my explanations of these terms will help you.
This is when you buy a property and then rent it back to the people you have bought it off. It is often seen as an investment.
Searches are carried out by solicitors to find out whether there are any unwanted/adverse effects in relation to a particular property. They will cover both existing issues as well as planned onces.
This is when you build the property yourself. If you are a builder you could literally build it yourself otherwise you can commission builders, surveyors etc to be involved with the planning and building.
This is a mortgage that is taken on to build a property. The loan amount is generally paid out in stages as the building is progressing.
This is a mortgage where a buyer does not provide evidence of there income but instead they state their income and sign a confirmation of their ability to repay the mortgage. Normally the rates of a self certification mortgage will be higher than those of a standard mortgage and a larger deposit is required.
This is also known as a Home Information pack (HIP) and has been legally required on all properties that are sold in on the open market since Dec 14th 2007. You have to have one as you cannot sell most properties without one so whether you question their value as most do or not its best to get one in plenty of time.
Gas, electric, water and council tax. In most AST’s the tenant will be responsible for the cost of these.
This is a scheme that is operated by various Housing Associations where the borrower buys and owns part of a property i.e. a percentage such as 40%, 50%, 75% etc and they pay a mortgage on the percentage they own. The Housing Association owns the rest of the property and the borrower pays rent to the Housing Association on this. The borrower would normally have the right to purchase a higher percentage of the property in the future.
This is when someone occupies a property as a tenant but has not signed an AST and so therefore cannot be asked to leave.
When a seller chooses only one agent or service to sell their home.
This is where one agent has complete control over the sale of a particular property. This agent is generally entitled to his fee however property is sold.
Legal Professional who acts on behalf of the buyer or seller in the purchase of a house. The solicitor will check the legal position of the house, carry out Local Authority Searches, Land Registry Searches check monies are in place and oversee the exchange and completion of contracts between the two parties.
Related: Top ten selling tips, What is the process of selling my home on Tepilo?
A split loan is a mortgage that can be taken partly on a capital and interest basis and partly on an interest only basis.
A government tax. Currently the tax is 1% of the property's value £175,000 - £250,000, 2.5% for properties valued between £250k - £500k and 3.5% over £500k
This is the default variable rate the Lender offers to borrowers on their standard residential mortgages. It is also normally the rate that mortgage is reverted back to at the end of any special discount period.
