The Ultimate Property Jargon Buster
When it comes to buying, selling and renting properties there are a ton of jargon that can get quite complicated if you are new to it all. Below we give you our quick jargon buster of a blog to make you an expert in no time!
Sold STC / Under offer
This mean sold subject to contract, an offer has been agreed by the vendor from a buyer and they have instructed solicitors to do the legals to purchase the property. This can take anywhere between 6-12 weeks depending on whether it is a leasehold or freehold property.
Commonly flats, this means you do not own the land your property is on, however you own the bricks and mortar that are on the land for a designated amount of time. i.e a lease being 125 years.
If you own a house then the chances are you own the freehold, meaning that you own the property and land it is on.
Share of freehold
Generally share of freehold are on period conversions however, not always. This means that all of the owners will own an equal share of the freehold.
A.I.P (Agreement in principle)
This is an agreement from a bank to say how much they will be willing to lend.
IFA (Independent financial adviser)¬†
A broker that compares the whole market for mortgages to source you the best deal.
Generally applied to leasehold only properties, the freeholder will charge a yearly fee to the leaseholders.
Generally applied to non freehold properties, a management company who will look after the block will charge a fee for the buildings insurance, and overall maintenance of a block. i.e gardening, cleaning of communal areas, servicing of lifts.
where a management company takes a maintenance charge they will sometimes take extra from each leaseholder to build up a sinking fund. If any major works are needed to be done they can be covered through the sinking fund instead of asking each leaseholder, or share of freeholder for a large sum of money to cover it. This gives peace of mind to the owners.
This is granted for the sale of a property following the death of an owner.
This is when an offer has been agreed with a seller and buyer and then a third party offers above what a has been accepted by the vendor.
This is when the buyer tries to make the seller except a lower offer just before contracts are due to exchange.
Written by Remzi Mehmet – Director @ The-Address