Leasehold: Ownership of the property for a set period, but not the land it stands on, which is owned by the freeholder.
Freehold: Outright ownership of the property and the land it is on.
Chain Free: Indicates a property is being sold without the seller needing to buy another property, simplifying the transaction.
Contract: The legally binding agreement signed by the buyer and seller, outlining the obligations of both parties.
Service Charge: A fee paid by the property owner for the maintenance of communal areas and, if relevant, the surrounding estate.
Exchanging Contracts: The stage when the vendor and buyer sign a document, making the purchase of a property or piece of land legally binding.
Completion: The final stage of transferring property ownership, where funds are paid, and documents are dated.
Handover: When the owner officially takes possession of the property from the developer. Keys are handed over, meter readings are checked, and a final property check for snagging is performed.
Stamp Duty (SDLT): A tax paid on property purchases above a certain value.
LTV (Loan to Value): The ratio of the mortgage loan amount to the property value, expressed as a percentage.
Conveyancing: The legal process of transferring property ownership from one person to another.
Gazumping: When a seller accepts a higher offer from a new buyer after already agreeing to an offer from another buyer.
Bridging Loan: A short-term loan used until permanent financing is secured or the existing obligation is removed, often used in property transactions.
Snagging List: A list of defects or unfinished work in a new-build property that needs to be addressed by the developer before the buyer moves in.
Surveyor: A professional who assesses the property for structural integrity, potential issues, and value.
Equity: The difference between the market value of a property and the amount still owed on the mortgage.
Ground Rent: A regular payment made by the leaseholder to the freeholder as part of a lease agreement.
Understanding these terms will help you navigate the property-buying process with greater confidence and clarity. Whether you're a first-time buyer or an experienced property investor, being familiar with this jargon ensures you can make informed decisions and have smoother transactions.
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