A GUIDE TO ESTATES AGENCY TERMS
| APR | ‘Annual Percentage Rate’. Interest rates can be presented in a variety of ways. APR shows what an interest rate works out over a year, including interest charges and arrangement fees which makes it easier to compare one rate with another |
| Arrangement Fee | Charged by some lenders for providing a loan |
| Bankers Draft | A ‘cheque’ written by the Bank which is made payable to the recipient. The draft is as good as cash. Banks charge about £10 for this service. |
| Base Rate | Rate of interest set by the Bank of England |
| Bridging Loan | High interest loan used to buy a property before your existing property has been sold |
| Chain | Situation in which the buyer and seller depend on each other simultaneously |
| CML | Council of Mortgage Lenders, which has devised the Mortgage code to ensure lenders treat customers fairly |
| Completion Date | When all transactions concerning the property are concluded |
| Contract | Legally binding agreement committing the parties to the transaction |
| Conveyancing | The process that legally completes the purchase of your home, including local land searches, checking title deeds, registering ownership with the Land Registry and drawing up the sale contract |
| Deposit | A percentage of the full amount that secures your transaction |
| DG | Double Glazing |
| Disbursement Fees | that your solicitor has to pay such as: stamp duty, search fees and payments to Land Registry. |
| Discounted rate mortgage | A discount offered by mortgage lenders to new borrowers, reducing monthly mortgage costs often for the first two or three years of the loan period |
| Equity | Difference between the marketable value of the property and the amount owed on the mortgage |
| Exchange | The signing of contracts by vendor and buyer. At this point both parties are committed to the transaction |
| Excl | Excluding |
| Fixed rate mortgage | A mortgage in which the interest rate is set for an agreed period |
| Freehold | Ownership of the land on which the property stands |
| Gazumping | Where the vendor accepts a higher price even though a sum has been agreed with another purchaser. The price is not final until contracts are exchanged. |
| GCH | Gas Central Heating |
| Ground Rent | Annual rent paid by the owner of a leasehold property to the person who holds the freehold land |
| Inc | Including |
| Inventory | Detailed list of items and their condition in the property |
| Land Registry | Official body responsible for recording the ownership of land |
| Leasehold | Ownership of a property but not the land on which it stands. When the lease expires, ownership of the property then reverts to the freeholder |
| OSP | Off Street Parking |
| PCM
(pcm) |
Rent ‘per calendar month’ |
| PIA | Personal Investment Authority which regulates the retail investment sector |
| PW (p/w) | Rent ‘per a week’ to arrive at the monthly rent use the following formula |
| Stamp
Duty |
Tax payable
on property purchases. Current rates correct as at June 2003: £0 to £59,999 @ no charge £60,000 to £249,999 @ 1% £250,000 to £499,999 @ 3% £500,000 and above @ 4% |
| Title Deed | Legal document assigning ownership of a property and/or land. These are held by the mortgage lender and are only released when the mortgage is paid off. |
| Variable base rate | The basic rate of interest charged on a mortgage. This may change in reaction to market conditions, so your monthly payments can go up or down |
| Vendor | Legal name for the seller of the property |
| W/D | Washer/Dryer |
| WM | Washing Machine |