A translation of terms used in the property rental world

 

Have you ever had a conversation with an estate agent or property professional and been bowled over by the use of property jargon terms? Fear not friends, we’ll go through the most used terms so you too can create shock and awe and sound like a real estate guru in your own property circles.

Vendor – The individual selling his/her property.

The “applicant” – The individual purchasing the property.

Sole agent – The only agent selling a property.

Chain free – An individual selling a property who does not need to find a property after selling their property.

AIP (Agreement In Principle) – A lenders letter proving you have a loan agreed to purchase a property.

Offer  – Official letter from the lender proving you have a loan to purchase the property.

Conveyancing – The transfer of legal documents from one person to another when purchasing a property.

EPC (Energy Performance Certificate) – A certificate showing how energy efficient a property is.

Subject to contract – After agreeing to buy a property, your offer is only valid until the official exchange of contracts between the applicant and the vendor.

SDLT – Stamp Duty Land Tax is a Government tax imposed on property purchases.

Exchange – Everything is legally agreed and exchange of contracts can proceed.

Completion – The final moment all legal processes have been finalised and you have officially got keys to the kingdom of your property.

BTL (Buy-to-let) – A property purchased by an individual with the intention of letting it rather than living in it.

CGT (Capital gains tax) – A tax imposed on profit from the sale of property or an investment.

PRS (Private Rented Sector) – A classification used in the United Kingdom by the department for communities and local government for housing tenure.

GDV (Gross Development Value) – A valuation used by investors and property developers when making financial appraisals and building their projects.

HMO (House In Multiple Occupation) – A property rented out by at least 3 people who are not from 1 household.

AST (Assured Shorthand Tenancy) – A legal agreement that gives a landlord the right to let a property to a tenant while retaining right to repossess the property at the end of the agreed term of the tenancy - you should also ask has your landlord or ex landlord protected your deposit

Article 4 Direction – A local planning authority designation which restricts permitted development rights on land or property, requiring the landowner to seek planning consent from the local authority.

GCH – Gas central heating.

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