This Jargon Buster helps you to better understand the common words and phrases you’re likely to hear during the property-buying process. Ideal for first-time buyers and anyone looking to purchase a property.
Affordable Housing
Affordable Housing is a type of housing built by Housing Associations or Registered Providers, with subsidies from the Government.
Agreement in Principle
An Agreement in Principle is a statement provided by lenders that shows what they would be prepared to lend you as a buyer if you passed all the checks in a formal mortgage application. This shows sellers that you are prepared and can afford to buy the property.
Appreciation / Depreciation
Appreciation is when a property’s value increases over time. Depreciation is when its value decreases. These changes could be influenced by a variety of factors, including market conditions, alterations made to the property, or changes to local area.
Arrears
Arrears refers to being late or overdue with a payment. For property buyers, this word is usually to describe missed mortgage payments that need to be brought up to date.
Base Rate
The Base Rate is the interest rate set by the Bank of England. This rate influences the cost of borrowing, including mortgage rates. Lenders will generally set or adjust their interest rates relative to the base rate.
Bridging loan
A Bridging Loan is a short-term loan commonly used to cover, or ‘bridge’, the overlap between buying a new property and selling an old one. It may also be used where a property needs work done on it to get it into a condition suitable for getting a mortgage.
Building Survey
A Building Survey is a detailed survey showing the structural condition of a property.
Buy-to-Let
Buy-to-Let refers to properties bought specifically to let, or rent out, to someone else.
Caveat Emptor
Caveat Emptor is Latin for ‘buyer beware’. This means that the buyer is responsible for checking the condition of a property before buying, usually by arranging a survey.
Chain
A property chain is created when there is a ‘chain’ of buyers and sellers, with multiple transactions that need to occur at the same time for each sale and purchase to conclude.
If you already own a property, it’s likely that you’ll need to sell your current property before you can buy your new property, so those two transactions need to take place at the same time. If, however, you are a first-time buyer, you won’t need to sell in order to move. This might make you a more attractive buyer from a seller’s point of view.
The longer the chain, the greater the chance of one part of the chain not being completed. As a result, the chain breaks and none of the buyers and sellers in the chain can complete their sales and purchases.
Chain-free
Chain-free refers to when the person selling a property doesn’t need an onward transaction to happen in order to sell you the property. And the buyer is not depending on the sale of a property in order to pay for the new property.
This is often seen as a perk when looking at property. Chain-free sales are often more straightforward, with less dependency on other transactions being completed.
Commonhold
Commonhold is a type of freehold ownership [Jump link] for a property that’s part of an estate. This allows a flat within a block to be owned as freehold, with all residents required to join the commonhold association as owners of a property in the commonhold. And each would need to contribute towards the cost of maintaining the wider estate (communal areas, gardens, etc.).
Common parts/areas
Common parts/areas refers to the parts of a freehold building that are shared by the leaseholders, for example the hallways and staircases.
Completion
Completion happens when a sale is finalised and all monies are passed over. At this point the buyer has the legal right to the take ownership of the property.
Completion statement
A Completion Statement is the document drawn up by your solicitor that shows all the costs and monies needed to complete the purchase of your property.
Conveyancing
Conveyancing is the process of transferring the legal ownership of property or land from one person to another. This process is performed by the buyer’s and seller’s solicitors.
Council tax band
A council tax band is a pricing category (A-H) for properties that determines how much council tax the resident has to pay. Council tax bands are calculated based on the estimated value of the property on April 1, 1991. Band A is the highest and H the lowest.
Council tax is a payment made to your local authority in order to pay for local services like schools, libraries, and refuse or recycling collections. Council tax bands for new homes will be estimated if the council hasn’t confirmed them yet.
There are some situations where you don’t have to pay council tax. Students, for example, aren’t required to pay, and some rental properties will include council tax within the rent.
Covenants
Covenants are rules or obligations that come with a property’s title. They might limit what you can do (a restrictive covenant) or require you to do certain things (a positive covenant), such as maintaining a driveway shared with a neighbour.
Deed of Variation
A Deed of Variation is a legal document that changes the terms of a lease. This is often used to correct errors, extend clauses, or amend ground rent terms.
Deeds
Deeds are original documents that confirm the details of ownership. A property deed, or title deed, shows who owns the property and includes a description of the property, boundaries, mortgages on the property and any restrictions.
Disbursements
Disbursements are fees paid by the buyer’s solicitor that the buyer pays the solicitor for. Typical examples during the conveyancing process are search fees and Land Registry fees.
Energy Performance Certificate (EPC)
An Energy Performance Certificate, or EPC, is a report that includes information about how energy-efficient a property is, as well as how it could be improved.
The EPC is valid for 10 years, and you’ll need one if you’re selling or renting out your home. Ratings span from ‘A’, for the most efficient homes, through to ‘G’, for the least efficient.
The EPC report includes a ‘potential’ score, which shows you the maximum rating the home could reach if all the recommended improvements were carried out.
Read more about energy efficiency requirements for landlords here.
Drainage and Water Search
A Drainage and Water Search confirms whether a property is connected to mains water and drainage, and if there are any public pipes within the property boundaries.
Early Repayment Charge (ERC)
An Early Repayment Charge, or ERC, is a fee charged if you repay your mortgage early, or switch deals before the end of a fixed or discounted period.
Easement
Easement is a legal right that someone has over another person’s land. For example, this could be your right of way across a neighbour’s driveway to access your garage.
Environmental Search
An Environmental Search checks for potential environmental risks to a property, such as flooding, landfill sites, or historic industrial use nearby.
Equity/Negative equity
Equity is the value of the property less any money that you owe that is secured against it. Negative equity is where the property is worth less than the mortgage you have on it.
Equity Loan
An Equity Loan is an amount of money borrowed based on a percentage of the purchase value of your property. The amount to be repaid is based on the same percentage of the final value of your home when you pay it back.
Exchange and Completion Gap
The Exchange and Completion Gap is the period from the exchange of contracts between buyer and seller, and completion. This could be anything from the same day to several weeks.
Exchange of Contracts
Exchange of contracts takes place when copies of signed contracts are exchanged between the buyer’s and seller’s solicitors. It is the point when both parties are legally committed to the sale or purchase. The deposit is also paid over to the seller’s solicitor at the same time.
First charge
First charge means that the mortgage company’s debt is paid before any other debt secured on the property. The mortgage company “has the first charge” against your property.
Fixtures and Fittings
Fixtures and fittings are the list of non-structural items in the property that the vendor will need to confirm whether they are part of the sale or not.
Fixtures are items permanently attached to the property, such as radiators, kitchens and fitted carpets. Fittings are moveable items, such as curtains and free-standing furniture.
Flying Freehold
A Flying Freehold is when part of a property extends over land or property not owned by the same freeholder, such as a room over a shared passageway.
Freehold
Buying a freehold property means you own the property and the land it’s built on. You’ll usually be responsible for maintenance of the property and have more freedom to extend or change it.
Gazumping
Gazumping is where the seller, having already accepted an offer, decides to accept a higher offer from another buyer. As both parties are only legally committed to the purchase after the exchange of contracts, the seller is legally entitled to do this.
Asking the vendor to stop advertising and doing viewings at the property once your offer has been accepted will reduce the risk of this happening.
Gazundering
Gazundering is when a buyer reduces their offer just before the contracts are exchanged in the hope of forcing the seller to accept less for the property. This can legally happen until the exchange of contracts.
Ground Rent
Ground rent is a regular payment made by the leaseholder to the freeholder, or management company.
How much you pay and how often you pay it will be written into the conditions of your lease. If you don’t pay your ground rent, the freeholder could take you to court and ultimately repossess your property.
Ground rent varies from property to property. However, the Government announced in January 2026 that it would be capping Ground Rents paid by leaseholders to £250 per year.
Ground rent review period
The ground rent review period will be written into the leasehold agreement. This will show how much ground rent can increase each time it’s reviewed. Costs which appear affordable now may not be in the future.
Guarantor
A Guarantor is a person who agrees to take responsibility for a mortgage if the borrower cannot make payments. Having a Guarantor can help some buyers to qualify for a mortgage.
Help to Buy (Historic)
Help to Buy was a government scheme (now closed to new applicants) that allowed buyers to purchase a property with an equity loan.
Home Buyers Report
A Home Buyers Report is a mid-level property condition report suitable for conventional properties. It does not include a full structural survey, which might be more suitable for older properties with a greater potential for more substantial defects.
Housing Association
A Housing Associations is a blanket term for not-for-profit organisations that have the aim of making homes available and affordable for all, including the managing of Shared Ownership schemes.
Indemnity Insurance
Indemnity Insurance is an insurance policy used during conveyancing to protect against a legal risk, such as missing planning permission or rights of way issues.
Interest-only mortgage
With an Interest-only mortgage, the monthly payment only covers the interest due on the loan. At the end of the mortgage term, the full amount of the mortgage advance will be payable to the lender.
This type of mortgage is generally only used by investors or where you have another method in place in order to be able to repay the loan at the end.
Joint Tenants
Joint tenants is a form of ownership used when two or more people own a property. If one of them dies, their share of the property automatically passes to the other owners, regardless of what it says in the deceased’s Will (also see Tenants in common). [jump link]
Land Registry
The Land Registry is a central government database which registers the details of ownership each time a property is sold.
Lease
A lease is the document between the leaseholder and the freeholder laying out the rights and responsibilities of each party.
Leaseholder
A leaseholder essentially buys the right to live in a property for fixed number of years. A freeholder will own the land the property is built on. Generally, a leaseholder will have to pay ground rent and services charges.
The length of the leasehold is recorded on the lease agreement. If the lease runs out, the ownership goes back to the freeholder. Leases can be extended, but it can be expensive.
The lease will outline what maintenance the leaseholder and freeholder are each responsible for. It’s likely a leaseholder will need the freeholder’s permission to alter the property.
Length of lease
The length of a lease means how long you’ve bought the right to live in a property for. The leasehold will be for a fixed number of years and will be recorded on the lease agreement. Leases can be extended, but there are associated costs.
Lifetime ISA
A Lifetime ISA is an ISA scheme designed for saving for later life, but can also be used to save towards buying your first home. You can save up to £4,000 per year, and the government will add a ‘top up’ bonus of 25%, up to a maximum of £1,000 each year. You can read more about Lifetime ISAs and how they work here.
Local Authority Search
A Local Authority Search is a check made with the local council to see if there are any issues that may affect the property you’re buying or selling.
Listed Building
A listed building is a property registered and protected as being of special interest or historic importance. If you own a listed building you’ll need to get permission from the local authority to make changes to it.
Loan to Value (LTV)
Loan to Value, or LTV, is the percentage of the full value of the property that your mortgage covers. So, if your property is worth £300,000 and you have a 10% deposit (£30,000), your mortgage would be for the remaining 90% (£270,000), giving a Loan to Value of 90%.
Generally speaking, the lower your Loan to Value, the lower the interest rate lenders will offer you for your mortgage.
Management Company / Managing Agent
A management company or agent is the organisation or individual responsible for maintaining communal areas and collecting service charges. Common for flats and some new build estates.
Memorandum of Sale
A Memorandum of Sale is a document issued once a buyer’s offer is accepted. It confirms details of the buyer, seller, and the agreed price, so solicitors can begin the conveyancing process.
Mining Search
A Mining Search is required in some areas (e.g. former coal mining regions) to check a property for ground stability risks.
Mortgage
A mortgage is a loan secured against a property. A ‘first charge’ will be registered on the property, so you can’t sell the property without paying off the mortgage first. If you don’t keep up the repayments, the lender can repossess the property and evict you.
Mortgage Advance
A mortgage advance is the amount of money that the lender will lend you in order to purchase the property.
Mortgage Broker
A mortgage broker is a specialist who helps you to find a suitable mortgage product. Some brokers charge a fee, while others are paid by the lender once a product is agreed.
Mortgage in Principle / Decision in Principle (MIP/DIP)
A Mortgage in Principle (MIP) and a Decision in Principle (DIP) are the same as an Agreement in Principle. This is a figure that a lender says they would be willing to lend you if you were to pass all the checks in a formal mortgage application.
Mortgage Term
A mortgage term is the amount of time over which the mortgage lender will lend you the mortgage advance.
New Build Premium
The New Build Premium is the additional amount often paid for a brand-new property when compared with similar older homes.
NHBC scheme (National House-Building Council)
The NHBC scheme is one of the main schemes that provides warranties for new build properties.
Overpayment
Overpayment means paying more than your standard monthly mortgage payment. Many mortgages allow you to overpay up to a certain amount each year – typically 10% – without being penalised. This helps to reduce the total interest paid.
Part Exchange
Part Exchange is a scheme where a developer buys your current home so you can buy one of their new build properties.
Peppercorn rent
A peppercorn rent is used to describe a very low, or token, rent paid by a tenant to a landlord. It allows the tenant a right over the land and is likely to be charged on an annual basis.
The name comes from leases where historically the rent was a peppercorn or a pound of peppercorns per year.
Portable Mortgage
A Portable Mortgage is a mortgage that can be transferred to a new property if you move home, if the lender approves the transfer.
Power of Attorney (PoA)
Power of Attorney is something you can give to someone to act on your behalf for legal/financial affairs when you are not able to.
Redemption Statement
A Redemption Statement is a document from your lender that confirms the total amount you’ll need to fully repay your mortgage on a specific date. This statement is needed if you are selling, remortgaging, or paying your mortgage off early.
Registered Provider (RP)
Registered Provider, or RP, is the new term for Registered Social Landlord (RSL). This includes Housing Associations and Local Authorities.
Repayment mortgage
A repayment mortgage is the standard type of mortgage where your monthly payment pays part of the interest and part of the money that you have borrowed. Over the length of the mortgage, you will have paid all of the interest due and paid back the money borrowed.
Report on Title
The Report on Title is a summary that your solicitor prepares detailing all findings about the property. It includes searches, the lease (if applicable), and any issues you should be aware of before exchanging contracts.
Restrictive Covenant
A Restrictive Covenant is a legal restriction on how a property can be used. For example, not being allowed to build an extension or run a business from that property.
Retention
Retention is when a mortgage lender holds back part of a mortgage until specific repairs or works are completed.
RICS
RICS stands for Royal Institute of Chartered Surveyors.
Service charges
Service charges are a regular payment for things like building insurance, caretakers, lighting, heating, cleaning and maintenance for shared areas of an estate.
Service charges are common for leasehold properties, but some newer freehold homes may also include a requirement to contribute towards maintenance of the estate’s communal facilities.
These costs can increase and might be required to cover future maintenance that’s currently unknown. This is called a reserve or sinking fund. Always make sure that you understand the charges and how much they could increase in the future.
Shared ownership
Shared ownership is a form of leasehold where you buy a percentage of the property, and pay rent on the share you don’t own. You may be able to purchase the remaining share at additional cost. When you want to sell the property you might need permission.
Share of freehold
Share of freehold is where the freehold ownership is shared between multiple properties in the same building, such as flats or maisonettes.
This means you’ll usually be responsible for maintenance of the property and have more freedom to alter or change it.
Sinking Fund/Reserve Fund
A sinking fund, or reserve fund, is money paid to the freeholder to cover specific, normally larger-scale, works to the property.
Snagging Survey
A Snagging Survey is carried out on a new build property to identify defects or unfinished work that the developer should fix.
Builders often push for this to be submitted to them within two months of completion, but buyers are covered by Defects Liability for the first two years, then by the building warranty up to ten years.
Solicitor’s Fees (Legal Fees)
The Solicitor’s Fees, or Legal Fees, are the cost charged by your solicitor for their professional work on the property purchase. These are separate from ‘disbursements’, which are costs charged by third parties.
Staircasing
Staircasing, also known as ‘tranching up’, is where you buy an additional percentage share of your home under a Shared Ownership scheme.
Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax, or SDLP, is a government tax payable on property or land above a certain price threshold in England or Northern Ireland. Use our stamp duty calculator to work out how much your stamp duty will be.
If you’re buying a property or land in Scotland or Wales, there are equivalents of this tax that you might have to pay. Different rates apply for different property prices, so it’s worth looking into it well in advance.
Standard Variable Rate (SVR)
The Standard Variable Rate is the main mortgage interest rate charged by a lender and normally the default rate when fixed-rate deals come to an end. It is based on the Bank of England Base rate.
Subject to contract (STC)
Subject to contract, or STC, is what you’ll see next to properties where an offer has been accepted subject to contract. This means that the offer is only finalised once contracts are signed and exchanged. Read more about the meaning of Sold STC on property listings.
Tenancy length
The tenancy length is how long the landlord offers to let the property for. This will be recorded on a contract, or tenancy agreement, between you and a landlord.
However, the Renter’s Rights Bill will come into effect in May 2026, and will do away with fixed-term tenancies. All tenancy agreements will be based on a rolling contract, although a six-month security period at the start of a tenancy will mean that landlords cannot evict tenants during that time, unless for a fault-based reason (for example, failing to pay rent on time).
Tenants in common
Tenants in common is a form of ownership used when two or more people own a property. If one of them dies, their share of the property forms part of their estate and does not automatically pass to the other owners in common. (Also see joint tenants) [jump link]
Title Plan
The Title Plan is a Land Registry document showing the exact boundaries of a property.[ES2]
Under offer
Under Offer is where the vendor has accepted an offer from a buyer, but the exchange of contracts has yet to happen.
Vacant Possession
Vacant Posession is the requirement that a property must be empty on completion day, with the seller and any tenants having moved out.
Valuation
A valuation is an assessment of a property’s value. There are different types of valuations available. These can be carried out by an estate agent in person, or you can get an instant valuation online.
Valuation Survey
A valuation survey is the check undertaken by the mortgage lender to assess the value and condition of a property.
Vendor
The Vendor is the person or party selling a property.
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