Property glossary
Plain-English definitions of the terms you’ll meet when buying, selling or financing a home.
- Building Survey
- A RICS Level 3 survey: an in-depth structural inspection, recommended for older, thatched, timber-framed or unusual properties. The most expensive but most thorough option.
- Completion
- The day the balance of the purchase price is paid and ownership transfers. The buyer receives the keys; the seller moves out. Stamp Duty is due within 14 days.
- Conveyancing
- The legal process of transferring property ownership from seller to buyer, including searches, title checks, contract preparation and Land Registry registration.
- Early repayment charge (ERC)
- A fee charged if you repay or switch a fixed-rate mortgage before its term ends - typically 1–5% of the balance. Check before overpaying or remortgaging early.
- Energy Performance Certificate (EPC)
- A certificate rating a property’s energy efficiency from A to G. Legally required before a property can be marketed for sale or rent; typically costs £60–£120.
- Exchange of contracts
- The point in a property purchase where both parties sign the contract and it becomes legally binding. The buyer pays the deposit (usually 5–10%) and a completion date is set.
- Freehold
- Owning the property and the land it stands on outright, with no ground rent or lease term. The most common form of ownership for houses in England and Wales.
- Gazumping
- When a seller accepts a higher offer from someone else after agreeing a sale with you but before contracts are exchanged. Offers are not legally binding until exchange, so gazumping is legal (though rare in slow markets).
- Ground rent
- An annual payment leaseholders make to the freeholder. Historically small (peppercorn amounts), but newer leases can have escalating ground rents - a known trap to check before buying.
- HomeBuyer Report
- A RICS Level 2 survey: a condition inspection (traffic-light ratings), a valuation and repair advice. The standard survey for most homes built after 1900.
- Leasehold
- Owning a property for a fixed period (usually 99–999 years) on land owned by a freeholder, with ground rent and service charges. Flats are typically leasehold; houses increasingly rare as leasehold.
- Lifetime ISA (LISA)
- A savings account for 18–39 year-olds. The government adds 25% (up to £1,000 a year) on savings used for a first home worth up to £450,000 or retirement. A 25% withdrawal charge applies for other uses.
- Loan-to-value (LTV)
- The amount you borrow as a percentage of the property price. A 10% deposit means a 90% LTV mortgage. Lower LTVs generally attract lower interest rates.
- Mortgage in principle (AIP)
- A lender’s written indication of how much they would lend you, based on an initial affordability check. Free to obtain and expected by estate agents before you make an offer.
- Property chain
- A sequence of linked property transactions where each buyer is also a seller. Chains add time and risk - a single collapsed link can delay or cancel every transaction above it.
- Sold subject to contract (SSTC)
- The status of a property once an offer has been accepted but before contracts are exchanged. The sale is not legally binding at this point.
- Stamp Duty Land Tax (SDLT)
- A tax paid when buying a property in England or Northern Ireland, charged progressively on the purchase price. Scotland (LBTT) and Wales (LTT) have separate systems.