19 Nov Our property jargon buster

Let’s face it. Nobody enjoys feeling clueless when buying or renting a property and navigating the industry can sometimes feel like learning a new language. At Kaytons, we want you to feel confident and informed at every step so here’s your go-to guide for some of the most common terms you’ll come across in the sector. 

Common property terms 

Commonhold: A modern approach for flats, each flat owner owns their unit as freehold but all owners collectively own and maintain common areas like stairs and corridors.

Conveyancing: This is the legal work to transfer ownership of the property. A conveyancer handles contracts, searches, exchange and completion. 

EPC: Short for Energy Performance Certificate, this is a document that grades the energy efficiency of a property from A to G. It’s required when you sell or let a property. 

Equity: This is the value of your property minus what you owe on the mortgage. Negative equity is when the remaining mortgage is more than the property’s value. 

Freehold: This means you own the building and the land beneath it outright. You are responsible for maintenance and have maximum control.

Ground rent: A yearly fee that a leaseholder pays to the freeholder for the land.

HMO: House in Multiple Occupation is a property that is rented to three or more unrelated people who share facilities. This requires special licensing. 

Leasehold: You own the rights to occupy the property for a set number of years, usually 99, 125 or 999. The land, however, remains owned by the freeholder. This typically comes with ground rent, service charges and other restrictions. 

Searches: Before you buy a property, your solicitor will perform searches that check for planning restrictions, local issues and flood risks. 

Service charge: Sometimes referred to as maintenance, these are costs paid by leaseholders to cover communal services such as cleaning, repairs and insurance. 

Stamp Duty Land Tax: Tax paid by the buyer to the government on property purchases above a certain threshold. The price will depend on the property and its band, as well as if you are a first time buyer or buying an additional home. 

Subject to contract: An offer has been accepted in principle, but no binding legal contracts have been signed.

Survey: A thorough inspection of the property’s condition. There are various types of this including a Homebuyers Report and a full structural survey. 

Title deeds: These are the legal documents that prove ownership. They are often called Land Registry documents. 

Under offer: The seller has accepted an offer, but contracts haven’t been exchanged so the deal isn’t legally binding.

Valuation: An estimate of the property’s market value. 

Vendor: This is the seller of a property. 

How Kaytons can help

At Kaytons, we believe that communication and transparency is key. That’s why we’re always here to explain every detail, highlight your options and guide you through the process. So, if you’re unsure about anything, just reach out.