Definition: A valuation is an expert assessment of a property's worth conducted by a chartered surveyor or qualified valuer.
Explanation: Valuations are essential for determining the market value of a property. They are used by lenders for mortgage approvals and by sellers to set an appropriate asking price.
Definition: A mortgage is a loan used to purchase property, where the property itself serves as collateral for the loan.
Explanation: Mortgages enable individuals to buy property without paying the full purchase price upfront. Borrowers make regular monthly payments, often over several decades, to repay the loan as well as the interest on the loan.
3. Building Survey
Definition: A building survey, also known as a structural survey, is a comprehensive assessment of a property's condition, typically performed by a chartered surveyor.
Explanation: Buyers may opt for a building survey to uncover any structural or maintenance issues with the property before completing the purchase.
4. Land Registry
Definition: The Land Registry is a government department responsible for recording land and property ownership in England and Wales.
Explanation: It maintains a register of property ownership, land boundaries, and any associated rights and restrictions.
5. Stamp Duty
Definition: Stamp Duty Land Tax (SDLT) is a tax the buyer pays when purchasing a property above a certain price threshold.
Explanation: The amount of stamp duty payable varies depending on the purchase price and whether the property is a primary residence or an additional property.
Definition: Conveyancing is the legal process of transferring property ownership from the seller to the buyer.
Explanation: Solicitors or conveyancers handle the legal aspects of property transactions, including searches, contracts, and the transfer of funds.
7. Leasehold and Freehold
Definition: Leasehold means the buyer owns the property for a specified period, while freehold means the buyer owns the property and the land it stands on outright.
Explanation: Understanding whether a property is leasehold or freehold is crucial, as it determines ownership rights and responsibilities.
Definition: Completion is the final stage of a property transaction when ownership is officially transferred and the buyer takes possession.
Explanation: It involves the exchange of funds, keys, and the transfer of legal documents.
Definition: Gazumping occurs when a seller accepts a higher offer from another buyer after previously agreeing to sell to someone else.
Explanation: While legal, gazumping can be frustrating for the original buyer.
Definition: A property chain is a series of linked property transactions where the sale of one property depends on the successful sale of another.
Explanation: Chains can cause delays and complications in the buying and selling process.
Understanding these key terms specific to the UK property market is essential for anyone looking to buy, sell, or invest in British property.