Agreement in Principle (AIP)
An Agreement in Principle (AIP) is a certificate from a lender confirming that they are willing to provide you with a mortgage, subject to further checks and conditions.
Anti-Money Laundering Checks (AML)
Anti-Money Laundering Checks (AML) are legal requirements for estate agents to verify the identity and source of funds of their clients to prevent money laundering activities.
Base Rate
The base rate is the interest rate set by the Bank of England, which influences the rates charged by lenders for mortgages and other loans.
BMV
BMV stands for "Below Market Value," meaning a property is priced lower than its estimated market value.
Bridging Loan
A bridging loan is a short-term financing option used to "bridge" the gap between buying a new property and selling an existing one.
Break Clause
A break clause is a provision in a lease agreement that allows either the landlord or tenant to terminate the lease before the end of the fixed term, subject to certain conditions and notice periods.
Chain
A chain refers to a series of linked property transactions, where the sale of one property depends on the successful purchase of another property.
Chain Free
A property is considered chain-free when the seller does not need to purchase another property for their onward move, simplifying the transaction process.
Compulsory Purchase Order (CPO)
A Compulsory Purchase Order (CPO) is a legal process that allows public bodies to acquire private property for public purposes, such as infrastructure projects or urban redevelopment.
Conveyancing
Conveyancing is the legal process of transferring ownership of a property from one person to another, including conducting searches, handling contracts, and transferring funds.
Deeds
Deeds are legal documents that provide evidence of ownership and specify the rights and obligations associated with a property.
Disbursements
Disbursements are additional expenses incurred during the conveyancing process, such as search fees, Land Registry fees, and stamp duty.
Early Repayment Charge (ERC)
An Early Repayment Charge (ERC) is a fee charged by a lender if a borrower pays off their mortgage before the end of the agreed term.
Energy Performance Certificate (EPC)
An Energy Performance Certificate (EPC) is a legally required document that rates a property's energy efficiency and provides recommendations for improving its energy performance.
Fixed Price
A fixed price is a set, non-negotiable asking price for a property, typically used in a strong seller's market.
Flying Freehold
A flying freehold is a situation where part of a property extends over or under another property, creating shared ownership or rights of way.
Ground Rent
Ground rent is an annual fee paid by a leaseholder to the freeholder for the right to occupy the property on leasehold land.
HMO (House in Multiple Occupation)
A House in Multiple Occupation (HMO) is a property rented out by at least three tenants who are not from the same household and share facilities like bathrooms and kitchens.
Land and Buildings Transaction Tax
Land and Buildings Transaction Tax is a tax payable on property purchases in Scotland, similar to Stamp Duty Land Tax in England and Wales.
Leasehold
Leasehold is a type of property ownership where the owner has a lease from the freeholder (landlord) to use the property for a specified period.
Mortgage Deed
A mortgage deed is a legal document that sets out the terms and conditions of a mortgage agreement between the lender and borrower.
Negative Equity
Negative equity occurs when the outstanding mortgage balance on a property exceeds its current market value.
Open Market Value (OMV)
Open Market Value (OMV) is an independent valuation of a property, representing the estimated price it would sell for on the open market.
Right to Buy (RTB)
The Right to Buy (RTB) scheme allows eligible council and housing association tenants to purchase their rented property at a discounted price.
Understanding the language used by estate agents can be very helpful on your journey of buying or selling a home. But not to worry, our Paisley estate agents at Movewise Estate Agency will do the work for you and are committed to providing clear and transparent communication throughout the process.
