🏡 Demystifying Estate Agency Terms: A Guide for Homeowners
Navigating the property market can be daunting, especially with the myriad of terms used by estate agents. At David Clarke Estate Agents, we believe in empowering our clients in Herne Bay and Whitstable with clear and concise information. We’ve compiled a glossary of essential estate agency terms to help you understand the process better.
- Agreement in Principle – An estimate of what you could borrow from a mortgage lender based on your income and credit score. Also known as mortgage in principle or mortgage promise.
- Annual Percentage Rate of Charge (APRC) – A calculation of the overall cost of your mortgage, including interest and fees.
- Bank Rate – Also known as the base rate, it’s set by the Bank of England and influences other interest rates.
- Bridging Loan – A short-term loan used to buy a property before selling your current one.
- Building Survey – A detailed report on the property’s condition, often referred to as a full structural survey.
- Chain – When multiple transactions are interdependent. A good agent will help keep the chain moving.
- Commonhold – A form of ownership used in shared buildings, like flats, where each owner owns their property and shares responsibility for the building.
- Completion Date – The day when ownership transfers to the buyer, and keys are released.
- Conveyancer – A legal professional who handles the property ownership transfer.
- Covenant – Legal terms within property deeds that may restrict or require certain actions.
- Deeds – Legal documents showing who owns the property and outlining any restrictions.
- Deposit – A sum paid upfront (often 10%) to secure a property purchase.
- Early Repayment Charge (ERC) – A fee for paying off your mortgage early or switching products during a fixed period.
- Easement – The legal right to use another’s land for a specific purpose, such as a private path.
- Energy Performance Certificate (EPC) – Rates a property’s energy efficiency from A to G.
- Equity – The value of your share in the property, based on market value minus any outstanding mortgage.
- Exchange of Contracts – The stage where the buyer and seller are legally committed to the sale.
- Execution-only – Choosing a mortgage deal without receiving advice from a broker or advisor.
- First-Time Buyer – Someone purchasing a property for the first time.
- Fixed-rate – A mortgage interest rate that stays the same for a set time period.
- Freehold – Full ownership of a property and the land it stands on.
- Gazumping – When a seller accepts a higher offer after previously accepting another.
- Gazundering – When a buyer lowers their offer at the last moment, pressuring the seller.
- Interest Rates – The percentage added to the mortgage repayment amount.
- Land and Building Transaction Tax (Scotland) – A tax applied to property purchases in Scotland.
- Land Registry – A government record of who owns which land and property.
- Land Transaction Tax (Wales) – The Welsh equivalent of Stamp Duty, charged on property purchases.
- Leasehold – Ownership of a property for a fixed period, excluding the land it’s on.
- Loan-to-Value (LTV) – The ratio between the mortgage loan and the property’s value.
- Mortgage – A loan to purchase a property, paid back over time with interest.
- New Build – A property recently built and not previously occupied.
- Right of Way – A legal right to access or pass through another’s land.
- Snagging – Fixing minor defects in new builds before the buyer moves in.
- Solicitor – A legal expert who handles complex property law and transactions.
- Stamp Duty – A tax paid when buying property or land in England and Northern Ireland.
- Standard Security (Scotland) – A document confirming that a lender may repossess your home if you default on your mortgage.
- Standard Variable Rate (SVR) – The default mortgage rate set by lenders after any introductory deal ends.
- Surveyor – An expert who inspects a property’s structure and identifies issues.
- Title – The legal right to own a property or land.
- Under Offer – A property that has had an offer accepted but is not yet sold.
- Vendor – Another term for the person selling the property.
Understanding these terms can make your property journey smoother and more transparent. Our team at David Clarke Estate Agents is here to guide you every step of the way, ensuring clarity and confidence in your decisions.
For personalised advice and expert assistance, reach out to our estate agents in Herne Bay or estate agents in Whitstable. We’re committed to making your property experience seamless and informed.