Real Estate Glossary

UK Real Estate Glossary (A–Z)

A

1. Abandonment – When a tenant leaves a property without notice and stops paying rent, potentially terminating tenancy.
2. Abstract of Title – A summary of the legal history and ownership of a property.
3. Additional Enquiries – Further questions raised by a buyer’s solicitor before contracts are exchanged.
4. Advance – The amount of money a lender agrees to lend on a mortgage.
5. Agreement in Principle (AIP) – A lender’s confirmation of how much they may be willing to lend to a borrower.
6. Assent – A legal document used to transfer ownership of a property from the estate of someone who has died.
7. Assured Shorthold Tenancy (AST) – The most common type of tenancy agreement used in residential lettings.
8. Auction – A method of selling property through bidding, typically with immediate exchange of contracts.
9. Arrears – Money owed that is overdue, typically referring to unpaid rent or mortgage payments.
10. Assignment – The legal transfer of a lease or tenancy to another person.

B

1. Bank of England Base Rate – The interest rate set by the Bank of England, influencing mortgage rates.
2. Bridging Loan – A short-term loan used to bridge the gap between buying and selling property.
3. Buildings Insurance – A policy that covers damage to the structure of the property.
4. Break Clause – A clause in a lease allowing early termination by landlord or tenant.
5. Boundary – A line that defines the edge of a property, usually shown on the title plan.
6. Buy-to-Let Mortgage – A mortgage for a property purchased specifically to be rented out.
7. Breach of Contract – When one party fails to meet the terms of a contract.
8. Building Survey – A comprehensive inspection report of a property’s condition.
9. Bungalow – A single-storey residential house.
10. Basic Rate Taxpayer – An individual whose income falls within the basic income tax band, affecting property tax considerations.

C

1. Completion – The final stage of a property sale when ownership transfers and keys are handed over.
2. Chain – A sequence of linked house purchases reliant on one another to complete.
3. Caveat Emptor – “Let the buyer beware” – the buyer must carry out their own due diligence.
4. Council Tax – A tax set by local councils to fund public services, payable by residents.
5. Conveyancer – A legal professional who manages the legal aspects of buying or selling property.
6. Capital Gains Tax – A tax on the profit made when selling a property that is not your primary residence.
7. Conditions of Sale – The terms under which a property is sold, outlined in the contract.
8. Commonhold – A form of property ownership used for flats, combining freehold ownership with shared responsibilities.
9. Contract Race – A situation where a seller accepts more than one offer and sells to the buyer who exchanges contracts first.
10. Covenant – A rule contained in a deed affecting how a property may be used.

D

1. Deeds – Legal documents proving ownership and other interests in a property.
2. Deposit – An amount (usually 5–10%) paid by the buyer upon exchange of contracts.
3. Disbursements – Third-party costs paid by a solicitor on behalf of the client, e.g., Land Registry fees.
4. Draft Contract – The initial version of the contract sent from seller’s solicitor to buyer’s solicitor.
5. Detached House – A stand-alone residential property with no shared walls.
6. Developer – A person or company that builds or renovates properties for sale.
7. Direct Debit – A method of automatic payment for rent or mortgage.
8. Drainage and Water Search – A search to confirm whether the property is connected to mains drainage and water supply.
9. Dual Agency – When two estate agents are appointed to sell the same property.
10. Down Valuation – When a lender’s valuation of a property is lower than the agreed purchase price.

E

1. Easement – A right allowing the use of another person’s land for a specific purpose (e.g., access).
2. Energy Performance Certificate (EPC) – A rating showing a property’s energy efficiency, legally required when selling or letting.
3. Enquiries Before Contract – Standard questions raised by the buyer’s solicitor to clarify legal matters.
4. Equity – The value of ownership in a property after deducting any mortgages or debts.
5. Exchange of Contracts – The point where both buyer and seller are legally bound to complete the sale.
6. Exclusivity Agreement – An agreement preventing the seller from negotiating with other buyers for a period.
7. Estate Agent – A professional who markets and negotiates the sale or letting of property.
8. Executor – A person named in a will to manage the deceased’s estate, including property.
9. Extending Lease – The legal process by which a leaseholder increases the length of their lease.
10. Environmental Search – A search that reveals any past land use issues (e.g., landfill, flooding risks).

F

1. Fixed-Rate Mortgage – A mortgage where the interest rate remains the same for an agreed period.
2. Fixtures and Fittings – Items that may or may not be included in the sale (e.g., curtains, appliances).
3. Freehold – Ownership of a property and the land it stands on, with no time limit.
4. First-Time Buyer – A person purchasing a property for the first time, often eligible for incentives.
5. Financial Advisor – A regulated professional providing mortgage and property investment advice.
6. Flats – A set of rooms forming an individual residence within a larger building.
7. Flood Risk Assessment – An evaluation of the likelihood of flooding at a property.
8. For Sale Board – A sign placed outside a property indicating it’s on the market.
9. Final Bill – A solicitor’s invoice covering their fee and any disbursements after completion.
10. Form TA6 – A standard property information form completed by the seller, disclosing details about the property.

G

1. Gazumping – When a seller accepts a higher offer after already agreeing to sell to another buyer.
2. Gazundering – When a buyer lowers their offer just before exchange of contracts.
3. Ground Rent – A fee paid by a leaseholder to the freeholder for the land on which the property stands.
4. Grant of Probate – A legal document that allows the executor to deal with a deceased person’s estate, including property.
5. Green Belt – Land designated to remain undeveloped to preserve open space around cities.
6. Gross Development Value (GDV) – The estimated value of a property or development once it is completed.
7. Guarantor – Someone who agrees to repay a loan or rent if the borrower or tenant fails to do so.
8. Grade Listed Building – A building recognised as being of special architectural or historic interest, with restrictions on changes.
9. Gas Safety Certificate – A document confirming that gas appliances in a property have been checked by a Gas Safe engineer.
10. Gutter Clearance – Routine maintenance of a property’s roof drainage, often considered during surveys.

H

1. Help to Buy Scheme – A government initiative offering equity loans to first-time buyers purchasing new-build homes.
2. Homebuyers Report – A property survey that includes valuation and highlights significant issues but is less detailed than a full survey.
3. House in Multiple Occupation (HMO) – A property rented by three or more people who are not from one household.
4. Holding Deposit – A payment made by a tenant to reserve a rental property before signing a tenancy agreement.
5. Housing Association – A not-for-profit organisation that provides affordable housing.
6. Holiday Let – A property let on a short-term basis for holiday use, subject to different tax rules.
7. Home Information Pack (HIP) – (Historic term) A document set formerly required for home sales, now defunct in England and Wales.
8. Habitable Room – A room used for everyday living such as bedrooms or living rooms, not including bathrooms or kitchens.
9. High Street Lender – A well-known UK bank or building society offering mortgages to the public.
10. House Price Index – A statistical measure tracking the changes in property prices over time.

I

1. Instruction – When a property owner formally asks an estate agent to market their property.
2. Inventory – A detailed list of contents and the condition of a property at the start of a tenancy.
3. Independent Mortgage Advisor – A mortgage broker who is not tied to specific lenders and can offer unbiased advice.
4. Indemnity Insurance – A policy that covers legal issues such as missing documents or planning permissions.
5. Index-Linked Rent Review – A rent increase linked to a measure such as the Retail Price Index (RPI).
6. Investment Yield – The annual income return on a property expressed as a percentage of its value.
7. Interest-Only Mortgage – A loan where only interest is paid monthly and the capital repaid at the end of the term.
8. Interim Payment – A part payment made before the final amount due, often used in staged construction contracts.
9. Internal Repairing Lease – A lease where the tenant is only responsible for interior maintenance.
10. Insolvency Practitioner – A licensed professional who deals with properties in bankruptcy or administration cases.

J

1. Joint Tenancy – A form of co-ownership where all parties have equal rights, and ownership passes automatically upon death.
2. Joint Mortgage – A loan taken out by two or more people who are jointly responsible for repayments.
3. Judicial Review – A legal process allowing challenge of decisions made by public bodies, including planning authorities.
4. Joint Agency Agreement – An agreement where two estate agents are instructed to sell a property together.
5. Joint and Several Liability – Legal term meaning that each party can be held responsible for the full amount owed.
6. Joint Venture – A collaboration between two or more parties for a property development project.
7. Just Compensation – Payment for land or property acquired under compulsory purchase.
8. Japanese Knotweed – An invasive plant that can cause structural damage and affect mortgage lending.
9. Jurisdiction Clause – Clause in contracts stating which country’s law will apply in the event of a dispute.
10. Judgment Debt – A court-ordered debt that can result in charging orders against a property.

K

1. Key Facts Illustration (KFI) – A summary document showing mortgage costs and features, required by lenders.
2. Kitchen Diner – A combined space typically including a kitchen and dining area, desirable in UK homes.
3. Key Money (Lettings) – In some cases, a goodwill payment made to secure a lease, more common in commercial lettings.
4. Kick-Out Clause – A clause allowing sellers to accept better offers if certain buyer conditions aren’t met in time.
5. Kiosk Lease – A short-term lease for a small retail space in commercial property.
6. Key Handover – The process of giving keys to the buyer or tenant on completion or start of tenancy.
7. Kerb Appeal – The attractiveness of a property from the street, influencing buyer first impressions.
8. Knowledge of Title – The seller’s responsibility to disclose full knowledge of any defects or issues.
9. Keep Open Clause – Common in retail leases, requiring the tenant to trade from the property during set hours.
10. Key Safe – A secure lockbox for storing keys, commonly used for property viewings or short lets.

L

1. Land Registry – The government department that records ownership of land and property in England and Wales.
2. Leasehold – A form of ownership where the property is owned for a set number of years, decades or centuries, but not the land it stands on.
3. Landlord – A person or organisation that owns a property and rents it to tenants.
4. LTV (Loan to Value) – The ratio between the amount borrowed on a mortgage and the property’s value.
5. Listed Building – A building officially designated as being of special architectural or historic interest, with restrictions on what changes can be made.
6. Licence to Occupy – A legal agreement that allows someone to occupy a property without giving them exclusive possession.
7. Land Transaction Tax (LTT) – A tax on property purchases in Wales, similar to SDLT in England.
8. Land and Buildings Transaction Tax (LBTT) – A tax on property purchases in Scotland.
9. Legal Charge – A legal right registered against a property to protect the lender’s interest until a mortgage is repaid.
10. Lease Extension – A process by which a leaseholder can extend the length of their lease, often involving negotiation or statutory rights.

M

1. Maisonette – A self-contained flat that typically has its own private entrance and occupies two floors.
2. Mortgage Agreement in Principle (AIP) – A statement from a lender indicating how much they’d be willing to lend, subject to full checks.
3. Maintenance Charge – A fee paid by leaseholders towards the upkeep of communal areas.
4. Mortgage Deed – A legal document that gives the lender a legal charge over the property.
5. Managing Agent – A company appointed to manage the day-to-day running of a block of flats or estate.
6. Mortgage Term – The length of time over which a mortgage is to be repaid.
7. Market Value – The estimated price a property would fetch on the open market.
8. Money Laundering Regulations – Legal requirements for estate agents and solicitors to check identity and funds’ source.
9. Mortgage Valuation – A basic valuation conducted on behalf of a lender to ensure the property is worth the loan amount.
10. Multiple Agency – When more than one estate agent is instructed to sell a property.

N

1. Negative Equity – When the value of a property falls below the amount owed on the mortgage.
2. NHBC Warranty – A 10-year guarantee provided on many new-build homes covering structural defects.
3. Notice to Quit – A formal notice from a landlord to end a tenancy.
4. New Build – A property that has recently been constructed and never previously occupied.
5. No Chain – A situation where the buyer or seller is not dependent on other linked transactions.
6. Net Yield – The income return on an investment property after deducting costs.
7. Neighbourhood Plan – A community-led framework for guiding the future development and growth of an area.
8. Notice Period – The time required to end a tenancy or contract, usually stated within the agreement.
9. Non-Standard Construction – Property built using methods or materials that are not common, which may affect mortgageability.
10. Nuisance – A legal term for interference with the enjoyment of property, such as noise or odours.

O

1. Offer Accepted – The point at which the seller has agreed to sell the property to the buyer, subject to contract.
2. Open Market Value – The price a property would likely sell for in current market conditions.
3. Occupation Date – The date on which a buyer or tenant can take possession of a property.
4. Overage Agreement – An agreement where the seller receives additional payment if the buyer gains planning permission or develops the land.
5. Option Agreement – A legal contract giving a buyer the right to purchase property in the future.
6. Outbuilding – A structure such as a shed or garage separate from the main building.
7. Office Copy Entry – An official copy of the Land Registry record showing ownership and charges.
8. Overriding Interest – Certain rights or interests that affect land even if not registered, like rights of way.
9. Occupier’s Consent Form – A form signed by an adult occupant of the property agreeing to a mortgage being taken out.
10. Offer Subject to Contract – An offer accepted by the seller but not legally binding until contracts are exchanged.

P

1. Part Exchange – Where a developer accepts a buyer’s existing property as part payment for a new one.
2. Peppercorn Rent – A nominal ground rent used in long leaseholds, often only a few pence per year.
3. Planning Permission – Formal approval from the local authority to build or make major changes to a property.
4. Pre-Completion Searches – Final checks made by a solicitor before completion, including bankruptcy and priority searches.
5. Principal Sum – The amount originally borrowed under a mortgage before interest.
6. Private Treaty – The standard method of buying or selling property by negotiation rather than auction.
7. Party Wall – A wall shared between two properties, usually semi-detached or terraced houses.
8. Property Ombudsman – An independent body that handles complaints about estate agents.
9. Probate Sale – The sale of a property owned by someone who has died, requiring a Grant of Probate.
10. Purchaser – The legal term for the person buying a property.

Q

1. Qualifying Tenant – A leaseholder who meets certain criteria under leasehold reform legislation.
2. Quiet Enjoyment – A legal right for tenants to occupy a property without interference.
3. Quantity Surveyor – A professional who manages construction costs and contracts.
4. Quick Sale Company – A business that offers to buy properties quickly, often below market value.
5. Quota Lease – A commercial lease agreement in which expenses are shared based on square footage.
6. Qualified Acceptance – An offer to accept a contract if certain terms are modified.
7. Questionnaire (Sellers’) – A standardised form completed by sellers providing key information about the property.
8. Qualified Surveyor – A surveyor who is a member of a recognised professional body such as RICS.
9. Quasi-Easement – A right that arises when land is divided and one part benefits from a feature of the other.
10. Quarter Day – One of four days in the year when commercial rents are traditionally due (e.g., 25th March, 24th June).

R

1. Redemption – Paying off a mortgage or loan in full.
2. Repossession – When a lender takes back a property due to the borrower’s failure to keep up payments.
3. Right to Buy – A scheme allowing tenants in council housing to purchase their home at a discount.
4. Remortgage – Taking out a new mortgage on a property you already own, often to get better terms.
5. RICS Survey – A survey conducted by a chartered surveyor accredited by the Royal Institution of Chartered Surveyors.
6. Restrictive Covenant – A legal condition that limits how a property can be used.
7. Registered Title – Proof of ownership recorded at the Land Registry.
8. Rentcharge – An annual sum paid by a freehold homeowner to a third party.
9. Right of Way – A legal right allowing someone to pass through land owned by another.
10. Reservation Fee – A fee paid to reserve a new-build home, often non-refundable.

S

1. Searches – Legal checks carried out by a conveyancer with local authorities to identify any planning, environmental, or legal issues.
2. Stamp Duty Land Tax (SDLT) – A tax paid on property purchases in England and Northern Ireland.
3. Shared Ownership – A scheme where you buy a share of a property and pay rent on the rest.
4. Solicitor – A legal professional who conducts conveyancing on behalf of the buyer or seller.
5. Section 21 Notice – A notice from the landlord seeking possession of a property let under an AST.
6. Structural Survey – A detailed report on a property’s construction and condition.
7. Surveyor – A professional who assesses property condition or value.
8. Snagging List – A list of issues or defects in a new-build home that need fixing before or after move-in.
9. Service Charge – A fee paid by leaseholders to cover communal building expenses.
10. Sold Subject to Contract (SSTC) – Indicates that a property offer has been accepted but contracts have not yet been exchanged.

T

1. Tenancy Agreement – A legal document outlining the terms under which a tenant occupies a property.
2. Title Deeds – Legal documents showing ownership and rights associated with a property.
3. Transfer of Equity – The process of adding or removing someone from the legal ownership of a property.
4. Tenure – The form of ownership of a property, such as leasehold or freehold.
5. Tenancy Deposit Scheme (TDS) – A government-backed scheme that protects tenants’ deposits during a tenancy.
6. Terraced House – A property that is joined to others in a row with shared side walls.
7. Trading Standards – A local authority service that regulates estate agency practices and enforces consumer protection laws.
8. Tenant’s Obligations – The duties a tenant must fulfil under a tenancy agreement.
9. Tree Preservation Order (TPO) – Legal protection for specific trees, preventing them from being cut down or damaged.
10. Title Register – The official Land Registry document confirming the legal ownership of a property.

U

1. Under Offer – A property where an offer has been made and accepted, but contracts have not been exchanged.
2. Utilities – Services provided to a property such as gas, electricity, water, and broadband.
3. Unadopted Road – A road not maintained by the local authority; maintenance responsibility usually lies with residents.
4. Upfront Costs – Initial costs paid by buyers or tenants, including deposits, fees, and surveys.
5. Unregistered Land – Land or property that has not yet been registered with the Land Registry.
6. Universal Credit (Housing Element) – Government benefit payments which may cover rent for eligible tenants.
7. Use Class – A classification defining how a property can be used under planning law (e.g. residential, commercial).
8. Underpinning – Strengthening the foundations of a property, often due to subsidence.
9. Utilities Search – A search identifying the location of services such as water pipes or electricity lines on a property.
10. Underlease – A lease granted by a tenant (rather than the freeholder) to another party.

V

1. Valuation – An estimate of a property’s worth, typically conducted by a RICS surveyor for mortgage or sales purposes.
2. Vacant Possession – A term meaning a property will be empty and free of occupants at the time of transfer.
3. Vendor – The person selling the property.
4. Variable Rate Mortgage – A mortgage with an interest rate that can change at the lender’s discretion or in line with the Bank of England base rate.
5. Valuer – A qualified professional who assesses a property’s market value, often employed by banks or estate agents.
6. VAT (Value Added Tax) – A tax added to the price of certain property-related services and commercial property transactions.
7. Vendor’s Conveyancer – A solicitor or licensed conveyancer acting for the seller in a property transaction.
8. Verified Identity Check – A process to confirm a buyer or seller’s identity, usually done through conveyancers or estate agents.
9. Void Period – A period when a rental property is unoccupied and not generating income.
10. Viewings – Scheduled appointments where prospective buyers or tenants inspect a property.

W

1. Wayleave Agreement – A legal agreement that allows utility companies to install and maintain infrastructure on private land.
2. Withdrawn Property – A property removed from the market by the vendor before an exchange of contracts.
3. Wet Rot – A timber decay condition found in damp properties, often flagged in surveys.
4. White Goods – Large domestic appliances such as fridges or washing machines—sometimes included in property sales.
5. With Vacant Possession – A term confirming the property will be empty of people and possessions upon completion.
6. Written Offer – A formal offer in writing, usually submitted via an estate agent to the seller.
7. Warranties (New Build) – Cover provided on new-build homes (e.g., NHBC or Premier Guarantee), usually for 10 years.
8. Wayleave – A right for a service provider to cross land with infrastructure such as telephone or electricity lines.
9. Working Order – A term used in surveys to indicate whether systems (e.g., heating) are functioning correctly.
10. Without Prejudice – A legal term used in negotiations, allowing statements to be made without affecting legal rights if talks fail.

Y

1. Yield – The income return on a property investment, usually calculated as a percentage of purchase price or market value.
2. Yearly Rent Review – Common in commercial leases, where rent is reviewed annually based on RPI or open market values.
3. Yellow Notice – Planning notices issued by local authorities, often posted on-site to notify the public of applications.
4. Yard – An open area at the back or side of a property, often paved—used in both residential and commercial properties.
5. Year-End Statement (Landlord) – A financial summary given to landlords detailing rental income and expenses, usually for tax purposes.
6. Yield Compression – A reduction in property investment returns due to rising capital values, common in high-demand UK markets.
7. Yardstick Valuation – A method of valuing land or development potential by using benchmarks per square foot or per unit.
8. Yield Curve – An economic indicator sometimes referenced in long-term real estate investment forecasting.
9. Yearly Tenancy – A tenancy agreement that renews or rolls over on a yearly basis.
10. Youth Hostel Use Class (Sui Generis) – Planning use for accommodation like hostels not covered by general residential use categories.

Z

1. Zoning (Planning Policy) – UK planning regulations designating land for residential, commercial, or mixed use.
2. Zoning Map Equivalent (UK) – Local plans or proposals maps issued by local planning authorities to guide land development.
3. Zero Carbon Home – A property that produces as much energy as it consumes through efficiency and renewable technologies.
4. Zero Ground Rent – Post-2022 leasehold reform measure preventing developers from charging ground rent on new leases.
5. Zero Rated VAT Property – Certain property transactions (e.g., new residential builds) that may be eligible for zero-rated VAT.
6. Zoning Laws (Devolved Powers) – Planning rules in the UK differ slightly across England, Scotland, Wales, and Northern Ireland due to devolved administrations.
7. Z-Value (Zoopla) – An estimated value for a home on Zoopla, based on market data and property trends.
8. Ziggurat Architecture – A stepped architectural style, sometimes seen in older UK commercial or council housing developments.
9. Zero Deposit Scheme – A rental deposit alternative where tenants pay a smaller upfront fee instead of a full deposit.

Zoning Exception (Planning Permission) – In the UK, “departures from the local plan” serve a similar function—allowing development not typically permitted