Glossary of housing terms

• A
• C
• D
• E
• F
• H
• I
• L
• N
• P
• R
• S
• T
• V

A

Amortisation

The gradual repayment of a loan's principal through regular payments that also cover interest. Where this is discussed.

Asking price

The figure at which a home is advertised. It records the seller's hope, not the market's answer. Where this is discussed.

C

Chain

A line of linked transactions in which each household must sell before it can buy. It moves at the speed of its slowest link. Where this is discussed.

Completion

The day the money moves and the keys are released, transferring ownership. Where this is discussed.

Condition report

The lightest level of survey: a visual, rated summary of a building's elements without repair costings. Where this is discussed.

Contract

The agreement that binds buyer and seller once exchanged, fixing the price and the completion date. Where this is discussed.

Conveyancing

The legal work of transferring ownership, including title checks, searches, enquiries and registration. Where this is discussed.

Covenant

An obligation attached to land, either restricting what an owner may do or requiring them to do something. Where this is discussed.

D

Deposit

Money the buyer contributes from their own funds, and separately the sum committed on exchange of contracts. Where this is discussed.

E

Easement

A right over someone else's land, such as a right of way or a right to run drainage beneath it. Where this is discussed.

Enquiries

Questions raised by the buyer's representatives arising from the title, searches, forms and survey. Where this is discussed.

Equity

The part of a property's value not owed to a lender. Where this is discussed.

Exchange

The moment contracts are swapped and the transaction becomes binding on both parties. Where this is discussed.

F

Fittings list

The item-by-item record of what is included in the sale, which prevents most completion-day disputes. Where this is discussed.

Fixed rate

An interest rate held constant for a defined period, usually shorter than the loan term. Where this is discussed.

Freehold

Ownership of land outright, without a term or a landlord. Where this is discussed.

H

Household formation

The rate at which new separate households are created, which drives housing demand more directly than population. Where this is discussed.

I

Interest-only

A loan on which payments cover interest alone, leaving the principal due in full at the end of the term. Where this is discussed.

L

Leasehold

Ownership of a property for a defined term, subject to a lease with a landlord, obligations and usually a service charge. Where this is discussed.

Loan to value

The loan expressed as a percentage of the property's value, and the strongest influence on the rate offered. Where this is discussed.

Local authority search

The enquiry that asks a council what it knows about a property, its road and any notices affecting it. Where this is discussed.

N

Non-traditional construction

Building methods other than conventional masonry and timber, which affect repair and lending. Where this is discussed.

P

Party wall

A wall shared between two properties, with its own rules governing work that affects it. Where this is discussed.

Principal

The amount of money borrowed, as distinct from the interest charged on it. Where this is discussed.

Property information form

The standard form on which a seller answers questions about boundaries, disputes, alterations, guarantees and services. Where this is discussed.

R

Repayment mortgage

A loan on which each payment covers interest and reduces the principal, clearing the debt by the end of the term. Where this is discussed.

S

Sold subject to contract

The state of a property after an offer is accepted and before contracts are exchanged, when either side may still withdraw. Where this is discussed.

Solid wall

A wall of a single masonry thickness with no cavity, which manages moisture by absorbing and releasing it. Where this is discussed.

Stock and flow

The distinction between all the homes that exist and the small number offered for sale, which is what sets prices. Where this is discussed.

T

Tenure

The legal basis on which a home is held: renting, leasehold or freehold. Where this is discussed.

Title register

The official record of ownership, extent, and the rights and burdens attached to a piece of land. Where this is discussed.

V

Valuation

The lender's assessment of a property as security for a loan, which is not a survey carried out for the buyer. Where this is discussed.

Variable rate

An interest rate that can move, either by tracking a reference rate or at the lender's discretion. Where this is discussed.