The process of buying or selling a property often feels overwhelming, particularly when it comes to understanding conveyancing—the legal transfer of ownership. Complicated terminology and legal jargon frequently add to the confusion, leaving many people feeling unsure of the steps ahead.
This glossary aims to simplify the conveyancing process, providing clear, straightforward explanations of key terms you’re likely to encounter. Whether you’re purchasing your first home or managing multiple transactions, this guide is here to give you the confidence and clarity you need to navigate the process with ease.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A
Absent Freeholder
An absent freeholder refers to a missing landlord or property owner. While this absence can occasionally create issues for leasehold flat owners, such as difficulties in obtaining consent for certain actions, it may also present opportunities. For instance, it could offer leaseholders better chances for value-enhancing lease extensions or freehold purchases.
Abstract of Title
This is a detailed chronological summary of relevant title deeds, used to prove a property’s history of ownership. It is an essential document in property transactions, ensuring that the title is valid and clear of potential disputes.
Accidental Landlord
An “accidental landlord” refers to someone who rents out a property they didn’t initially intend to. This may occur if they inherit a property or encounter challenges in selling their home. It often requires adapting to the responsibilities of property ownership and tenancy management.
Adopted Highway
An adopted highway is a road or path maintained by the local council. Unlike private or unadopted roads, its upkeep is funded by public expenditure. This distinction is important when clarifying rights of use and responsibility for maintenance.
Adverse Possession
Also known as “squatter’s rights,” adverse possession allows someone to acquire legal ownership of land or property by occupying it continuously and without the legal owner’s permission. This is subject to specific regulations and timeframes.
Approved in Principle
Known also as a “decision in principle,” this term refers to a preliminary affirmation from a mortgage lender regarding how much money they may lend, provided further checks are successfully passed. It is often one of the first steps in securing a mortgage and offers buyers confidence in their purchasing power.
Assured Shorthold Tenancy (AST)
An AST is the standard tenancy agreement in England. It provides both the landlord and tenant with a straightforward arrangement, where the landlord reserves the right to regain possession once the tenancy term concludes.
B
Best and Final Offer
This term applies in competitive property markets where the estate agent asks all interested buyers to submit their highest bids by a specified deadline. The offers are confidential and considered collectively once the deadline has passed, allowing for a fair and decisive sale process.
Bridging Loan
A bridging loan is a short-term financing solution designed to ‘bridge’ the gap between buying one property and selling another. It is typically used when immediate funds are required to secure a deal, pending the availability of proceeds from a sale.
Buyer and Seller Obligations
Certain concepts, such as “apportionments”, detail how costs like ground rent and service charges are handled when transferring a property. During the conveyancing process, a buyer may be required to reimburse the seller for costs paid in advance covering periods beyond the transaction completion date.
C
Conveyancing
Conveyancing is the legal process of transferring property ownership from a seller to a buyer. It includes various checks, searches, and the preparation of contracts to ensure the transaction is secure and legitimate. Conveyancers, whether solicitors or licensed specialists, oversee this process, offering crucial reassurance to all parties involved.
Completion Date
This marks the successful conclusion of the conveyancing process, where full payment for a property is made, and the title is officially transferred. For most buyers, this is the day they receive their keys and move into their new home.
Chattels vs. Fixtures
Chattels are movable personal property items, such as furniture, included in the sale of a property. Fixtures, on the other hand, are permanently attached items, like built-in wardrobes, forming part of the property.
Commonhold
Commonhold is a system of ownership specific to flats or apartments, offering an alternative to leasehold or freehold models. It allows flat owners to share ownership and responsibility for their block, creating a more collaborative management structure.
Completion Statement
This financial document is sent by conveyancers before the sale completion date. It details the costs associated with the purchase, breaking down fees, disbursements, and VAT in an easy-to-read format. Reviewing this ensures transparency and avoids confusion at the final stages of the transaction.
D
Deed of Covenant
A Deed of Covenant is a legal document that contains a covenant, which is a formal agreement or promise between parties.
Deed of Gift
A Deed of Gift is a formal legal document used to transfer ownership of a house, flat, or land from one person to another without any payment involved. It may also be utilised to add someone to the property deeds, transferring full or partial ownership.
Deed of Guarantee
This binding legal contract ensures that one individual agrees to take responsibility for another person’s debt or mortgage obligations if they fail to meet their commitments. Commonly used in loans and commercial finance, it provides lenders with security against a borrower defaulting on agreed payments.
Deed of Postponement
This is an agreement, typically between two lenders, where one loan is ranked behind another loan in priority. This often results in one mortgage becoming a second charge, subordinate to the first charge registered at the Land Registry.
Deeds
Deeds refer to the legal documentation outlining property ownership. These are held by the property owner or the mortgage company if the property is mortgaged. While historically the system relied on paper Title Deeds, property ownership records have predominantly moved to digital registration with HM Land Registry.
Default
Default occurs when a borrower fails to make their agreed mortgage payments.
Delayed Completion
Delayed completion is a scenario where the buyer and seller agree on a purchase price, exchange contracts with a deposit, but schedule the completion of the sale for a later date, which could be several years in some cases.
Demand for Payment
This is a written notice issued to leaseholders requiring payment of ground rent or service charges as stipulated in the lease agreement. It is critical for the wording of this demand to be accurate, as errors may render the demand invalid, freeing the leaseholder from the obligation to pay until a corrected demand is issued.
Demised Premises
The term “demised premises” refers to the parts of a property transferred to the leaseholder through a lease agreement. This generally includes the internal spaces such as walls and floorboards of a flat but excludes external walls and structural components retained by the landlord.
Deposit
A deposit is the sum paid by the buyer at the point of exchanging contracts to demonstrate their commitment to completing the purchase. This is typically 10% of the agreed purchase price.
Disbursements
Disbursements are costs incurred by the solicitor or conveyancer while acting on behalf of the buyer, such as search fees or registry charges. These costs are passed on to the buyer, often with a small administrative charge.
Discounted Mortgage
A discounted mortgage offers a reduced interest rate compared to the lender’s standard variable rate (SVR). The discount is usually available for a fixed period, often two to five years.
Down Valuation
A down valuation occurs when the property valuation determined by the lender’s surveyor is lower than anticipated or required for the mortgage application.
Drainage Search
A drainage search is a standard procedure conducted by solicitors during property transactions. It ensures that the property is connected to mains water and drainage systems.
E
Early Repayment Penalty
Some lenders may impose a financial penalty if a borrower chooses to pay off their mortgage early. This fee compensates the lender for the loss of interest payments.
Easement
An easement is a legal right to use another person’s property for a specific purpose. Common examples include rights of way, where the holder is granted permission to travel across another’s property.
Endowment Mortgage
An endowment mortgage involves paying the interest on the loan each month, alongside premiums for an endowment insurance policy. The aim of the policy is to accumulate enough funds to repay the original loan amount at the end of the mortgage term.
Engrossment
Engrossment refers to the final version of a legal document, prepared for signing by all relevant parties.
EPC (Energy Performance Certificate)
An Energy Performance Certificate contains details about a property’s energy efficiency, including typical energy costs and suggestions for improvement. Since 2020, all privately rented properties in England and Wales must have a minimum rating of E. Landlords who fail to provide a valid EPC may face restrictions such as being unable to evict tenants.
Epitome of Title
This document, also referred to as an abstract of title, provides a summary of the property’s ownership history.
Enfranchisement
Enfranchisement allows leaseholders of residential flats or houses to exercise their legal right to purchase the freehold of the property. When carried out collectively by flat owners, this process applies to the entire building. Freeholders generally cannot refuse the sale.
Environmental Search
This is a search conducted by solicitors during due diligence. It identifies risks such as potential flooding or land contamination that may affect the property.
Equity
Equity refers to the difference between a property’s current market value and the outstanding amount on its mortgage. For further information, click here to learn about how equity release works.
Estate Charge
An estate charge applies to freehold houses within residential estates. It is similar to a service charge but relates specifically to estate infrastructure rather than a leasehold flat.
Exchange of Contracts
During the exchange of contracts, solicitors acting for the buyer and seller transfer signed contracts and the buyer’s deposit. At this legally binding stage, both parties commit to completing the transaction.
Exclusivity Agreements
These agreements, also known as reservation agreements, ensure that a property is reserved for a particular buyer for a specified period, providing peace of mind while final arrangements are made.
F
First-Tier Property Tribunal
The First-Tier Property Tribunal is the authority responsible for resolving property-related disputes. These can range from determining lease extension and enfranchisement premiums to settling disagreements over service charges. Previously, this was referred to as the Leasehold Valuation Tribunal (LVT).
First-Time Buyer
A purchaser who has never previously owned a property.
Fixed Rate Mortgage
A mortgage with an interest rate that remains fixed for a predetermined term, typically three or five years.
Fixtures and Fittings
Items found within a property that may be included or excluded from a property sale, depending on the agreement.
Flood Risk Search
A report ordered by your solicitor to ascertain whether a property is situated in an area at risk of flooding, including insight into likely causes of the flooding.
Flying Freehold
A situation where part of a property extends over or lies beneath another property, giving rise to the term “flying.” This does not apply to leasehold properties in blocks of flats.
Forfeiture
The enforcement right of a freeholder to terminate a lease due to lease breaches. This includes reclaiming possession of the property. Often, the threat of forfeiture is sufficient to prompt tenants to resolve the breach.
Freehold
A form of property ownership where the owner not only holds the property itself but also the land it stands on. The freehold title is registered with the Land Registry and can be bought or sold.
Freehold and Free
A term describing a freehold house without any associated rentcharge.
Freeholder
The individual(s) who own a freehold property.
Freehold Company
A company formed to own the freehold property, usually after the process of enfranchisement. Typically, each leaseholder who participated in the freehold purchase is allocated one share in the company and is described as “having a share of the freehold.”
Freehold Purchase
An alternative term for the process of enfranchisement, whereby leaseholders collectively purchase the freehold of their building.
Full Title Guarantee
A robust guarantee provided during a property sale, implying that the seller has the full legal right to sell the property, free from mortgages or third-party claims.
Further Advance
An additional borrowing taken from an existing mortgage lender. This new borrowing may carry a different interest rate compared to the original loan.
G
Gazumping
Gazumping refers to the situation where a seller initially accepts an offer on their property but subsequently agrees to a higher offer from a different buyer. Legally, this is permissible as long as the price change happens before exchange of contracts, which is the point at which a binding legal agreement is created. Gazumping was particularly common in the 1980s but became less frequent over time. However, it tends to resurface during periods of rapidly rising house prices.
Gazundering
Gazundering is effectively the opposite of gazumping. It occurs when a buyer reduces their original purchase offer on a property shortly before contracts are exchanged. This practice is less common in a strong housing market where property prices are steadily increasing.
Ground Rent
Ground rent is a yearly sum of money that a leaseholder must pay to their landlord or freeholder. The amount of ground rent payable is specified in the lease but may be subject to change at specific intervals outlined within the agreement. Ground rent applies only to leasehold properties. Not paying ground rent could result in forfeiture proceedings.
Guide Price
A guide price is an estimated figure provided as an indication of a property’s likely sale price, often seen at property auctions. The final sale price may exceed or fall short of this estimate. Be cautious of auctioneers who may set guide prices artificially low to generate interest in a property being sold.
H
Help to Buy
A government scheme designed to assist first-time buyers in purchasing a home.
HMO (House of Multiple Occupation)
A single property where at least three individuals, from separate households, live together while sharing common facilities. A family living together is considered one household.
I
Indemnity Insurance
An insurance policy providing coverage for issues with the legal title, such as breaches of covenants or incomplete building regulation approvals.
Index Map Search
A search conducted through Land Registry records to determine whether a piece of land is registered or unregistered.
Interest-Only Mortgage
A loan where monthly payments cover only the interest, with no reduction in the capital amount, unlike a repayment mortgage.
Instruction
A term referring either to when a seller instructs an estate agent to list their property on the market or when a client formally appoints a solicitor to handle conveyancing.
J
Joint Agency
A situation where two estate agents are appointed jointly to sell a property.
Joint and Several Liability
When multiple individuals own a property, they are collectively responsible for any payments related to the property, such as under a lease. If one owner fails to pay, the remaining owners may be held responsible for the entire sum.
Joint Tenants
A form of property ownership by two or more individuals where, upon the death of one owner, their share automatically passes to the surviving owner(s), overriding any instructions in a will.
L
Land Charges Search
A solicitor-led check to confirm that the vendor legally owns the property being purchased by verifying the ‘Title Register’ and ‘Title Plan’ in the Land Registry.
Land Promotion Agreement
An agreement where a landowner retains ownership while a promoter seeks planning permission and arranges property development or sale, often with profit-sharing terms.
Land Option Agreement
A legal contract giving a buyer the right, but not the obligation, to purchase a piece of land at an agreed price within a specified timeframe.
Land Registry
The official body maintaining property ownership records for England and Wales.
Land Registry Search
A search of registered land records to verify property ownership, outstanding loans, or any registered rights over the property.
Land Transaction Tax
The equivalent of stamp duty in Wales, applicable during property purchases.
Lease
An agreement between a tenant and a freeholder, outlining the terms for occupying a property for a set period.
Lease Extension
A legal process enabling leasehold property owners to extend the term of their lease, either by negotiation or compulsion.
Leasehold
A form of property ownership where the owner has rights to the property for the lease term but not to the land beneath it.
Leaseholder
The person or entity holding ownership of a leasehold property, typically under long leases lasting 99, 125, or 999 years.
Leasehold Information Form
A standard form (TA7) used to gather details specific to leasehold properties, completed by the seller in addition to the general Property Information Form.
Legal Charge
Another term for a mortgage, referring to the lender’s legal right over the property as loan security.
Legal Pack
A set of legal documents prepared by the vendor’s solicitor when selling a property through auction.
Lender
A financial institution, typically a bank or building society, that provides a loan to property purchasers or owners.
Lender’s Arrangement Fee
A fee charged by the lending party for arranging the borrower’s loan.
Lessee
Another term for leaseholder, referring to the individual or entity leasing the property.
Lessor
Also referred to as a landlord, the individual or entity granting a lease to a lessee.
Licence to Alter
A legal document granted by a freeholder to a leaseholder, permitting specific alterations to the property under strict conditions.
Licence to Assign
A formal authorisation provided by the landlord to a leaseholder, allowing the leasehold property to be transferred or bought.
Limited Title Guarantee
A legal warranty used when the seller lacks detailed knowledge of the property, commonly in sales following the owner’s death, whereby guarantees over rights or covenants cannot be fully offered.
Listed Building
A building recognised for its historical or architectural importance. Listed status imposes restrictions on alterations.
Local Searches
Searches conducted by conveyancers at a buyer’s local council to uncover planned developments or council activities that may affect the property.
Long Lease
A lease originally granted for terms exceeding 21 years, often 99, 125, or even 999 years. Distinguished from short-term tenancies.
LTV (Loan to Value)
A measure representing the loan amount as a percentage of the property’s purchase price.
M
Managing Agents
A company appointed to manage a block of flats and collect service charges. They are typically appointed by the freeholder, Residents’ Management Company, or Right to Manage Company.
Mining Search
A special search conducted by your solicitor to check for any mining activity that may have been carried out under the property or in the surrounding area. This is particularly important in areas with a history of coal mining, as it assesses the risk of subsidence.
Modern Method of Auction
A variation of a traditional property auction that takes place online.
Money Laundering Regulations
Under the Money Laundering Regulations Act of 2002, solicitors are required to verify the identity of buyers and sellers in property transactions. This means providing sufficient evidence of identity and proof of funds is mandatory for everyone involved.
Mortgage
A loan provided to purchase a property, with the property itself used as security. If repayments are not made, the lender has the right to sell the property.
Mortgage Indemnity Policy
An insurance policy taken out by the lender to cover losses if the property is repossessed. The insurer can often recover losses directly from the borrower.
Mortgage Offer
A document from the mortgage lender detailing the terms of the loan, including the amount, interest rate, and repayment period.
Mortgage Redemption Figure
The total amount required to pay off the outstanding capital and interest of a loan when a mortgage is cleared.
Mortgage Retention
When a lender withholds part of the mortgage funds until specific repair or improvement works on the property have been completed.
Mortgagee
The institution lending the money, usually a bank or building society.
Mortgagor
The individual borrowing the money secured by a mortgage.
Multiple Agency Agreement
An arrangement where three or more estate agents are instructed simultaneously to sell a property.
N
Negative Equity
A situation where the outstanding mortgage or loan balance exceeds the current market value of the property.
NHBC
Refers to the National House-Building Council, a body that provides a 10-year guarantee and insurance protection on new build properties.
New Build
A property that is brand new and has not been owned or lived in before.
Notice of Transfer
Certain leases require informing the freeholder when a leasehold flat changes ownership. This process is completed via a formal notice, which is usually handled by the purchaser’s solicitor.
O
Occupier’s Consent
A legal document signed by anyone living in the property but not listed as the legal owner. This provides assurance to the mortgage lender that they can regain vacant possession if necessary.
Off-Plan
Purchasing a property based solely on plans before the construction has been completed.
Office Copies
The official documents held by the Land Registry that prove ownership of a property. Solicitors request these documents when conveyancing begins.
OIEO (Offers in Excess Of)
Indicates that the seller will only consider offers above a specified amount for the property.
OIRO (Offers in Region Of)
Indicates a guide price for the property, with offers above or below the stated price considered.
Open Market Value
The estimated value of a property based on current market conditions.
Overage
An additional payment that may be due to the seller after completion, based on conditions such as obtaining planning permission or selling newly-built properties on the land.
P
Park Homes
Park homes are prefabricated properties constructed off-site and transported to mobile home parks. Owners purchase the home itself but rent the pitch where it is located. This arrangement makes the buying process significantly different from standard property conveyancing.
Part Exchange
Part exchange involves using one property as partial payment for purchasing another, typically a new-build property.
Participation Agreement
This is a formal legal document used during the enfranchisement process. It binds participants to jointly purchase the freehold of their block.
Party Wall
A party wall is built on the boundary between two properties and provides structural support to buildings on both sides. It is often the cause of disputes between neighbours.
PCM (Per Calendar Month)
A term used to describe monthly rental charges or mortgage payments.
Peppercorn Rent
Peppercorn rent is a nominal rental amount, sometimes as little as £1 per year. It is used to create a legally binding lease contract.
Periodic Tenancy
This type of lease renews automatically on a weekly or monthly basis. It differs from a fixed-term tenancy or long leasehold, which typically runs for a minimum of 21 years. A periodic tenancy can arise when a fixed-term lease expires without a new agreement in place.
Planning Search
A planning search is a report requested by a solicitor that highlights potential developments or land use changes in the surrounding area of a property.
Private Road
A road that has not been “adopted” or maintained by the local authority. Maintenance is the responsibility of property owners, who may require documented rights of access to use it.
Property Information Form (PIF)
Officially referred to as Form TA6, this document contains vital information provided by the seller. It covers boundaries, guarantees, and completed work on the property. Sellers must complete it accurately as buyers rely on its contents during the purchasing process.
Possessory Title
Possessory title applies when property ownership cannot be proven by documentation or is acquired through adverse possession.
Power of Attorney
This legal document allows an individual to appoint another person to act on their behalf. It can take various forms, such as a General Power of Attorney or a Lasting Power of Attorney.
Purchase Lease Option
An investment strategy that enables a person to lease a property, earn income through subleasing, and potentially purchase the property later at a pre-agreed price. It is also referred to as “lease options.”
Purchaser
The individual or entity buying a property.
Q
Quiet Enjoyment
A legal covenant ensuring tenants or landowners the undisturbed use of their property. Courts typically uphold this right even if not explicitly mentioned in a tenancy agreement.
R
Radon Gas Search
This search assesses whether a property is at risk of higher-than-recommended levels of radon, a radioactive gas that may pose health risks.
Raising Enquiries
Solicitors formally raise enquiries during the buying process to ensure the client understands all aspects of the property being purchased.
Redemption
The act of settling a mortgage in full.
Redemption Penalty
A fee charged by lenders when a mortgage is paid off earlier than the agreed term.
Refinancing
Replacing an existing mortgage with a new one, often with a different lender and potentially better terms.
Registered Land
Land registered with the Land Registry, where details regarding ownership are stored.
Remortgaging
The process of securing a new mortgage (with the same or a different lender) to pay off an existing mortgage. The same property is used as collateral.
Rentcharge
A fixed annual fee paid by property owners to a third party that has no other legal interest in the land.
Repayment Holiday
A temporary period agreed upon by the lender during which the borrower can pause mortgage repayments.
Repayment Mortgage
A loan where monthly instalments cover both the interest and a portion of the capital debt, eventually clearing the debt over time. It is often called a “Capital and Interest Mortgage.”
Report on Title
Prepared by a solicitor, this document summarises the legal title of a property. Buyers must read and understand it carefully or seek clarification from their solicitor.
Repossession
When a mortgage lender takes ownership of a property due to the borrower defaulting on payments. This can lead to eviction and a forced sale.
Requisition on Title
Questions raised by solicitors about the property’s title and the transfer process.
Residents’ Management Company (RMC)
A legal entity formed by residents of a block of flats to manage the property on behalf of the freeholder. Leaseholders often serve as shareholders in the company.
Residents’ Association
An informal group representing flat owners and sometimes tenants. It differs from a Residents’ Management Company but may involve the same members.
Reservation Agreement
An agreement where a buyer reserves a property at a set price for a fixed period. Often used for new-build properties, this requires a non-refundable deposit if the purchase doesn’t proceed.
Reservation Fee
A deposit paid to a builder to secure a property that has not yet been constructed.
Retention
Funds withheld during the property purchase or sale process, usually held back until certain conditions are met.
Right of Way
A legally established right to cross another’s property to access a particular location.
Right to Buy
A government scheme enabling most council tenants to purchase their homes at a discounted price.
Right to Manage
Under this process, residential long-leasehold flat owners can collectively take over the management of their property from the freeholder by forming a Right to Manage (RTM) company.
S
Sealed Bids
A process where prospective buyers submit offers in sealed envelopes by a predetermined deadline. The bidders are unaware of others’ offers, and the property is awarded to the highest bidder.
Searches
Enquiries conducted by solicitors during the conveyancing process to identify important details about a property. These include local authority, environmental, and drainage searches. Specific locations may also require specialised searches, such as mining or radon gas reports.
Section 13 Notice
A formal document that initiates the statutory collective enfranchisement process, allowing leaseholders to purchase the freehold of their building.
Section 42 Notice
The official notice used to begin the legal process for extending a lease, following statutory guidelines.
Service Charge
Payments made by leaseholders to freeholders to cover the costs of property maintenance, repairs, and associated services.
Shared Driveway
A driveway that is either jointly owned by multiple users or privately owned with granted access rights for others.
Shared Freehold
An arrangement where leaseholders collectively purchase the freehold of their building. Each participating leaseholder owns a share of the freehold.
Shared Ownership
A scheme that allows individuals to own a portion of a property while renting the remaining share, typically from a housing association. Options are usually available to increase ownership shares or eventually own the property outright.
Sinking Funds
Funds contributed by leaseholders to cover the cost of future repairs and major works. These funds are held in trust and help ensure readiness for significant expenses.
Snagging
The process of inspecting new-build properties for minor defects or issues requiring correction. A “snagging list” is typically prepared for this purpose.
Sole Agent
An arrangement where the sale of a property is handled exclusively by a single estate agent.
Staircasing
The process of increasing ownership in a shared ownership property by purchasing additional shares over time.
Stamp Duty
A tax levied by the UK government on property purchases, officially referred to as Stamp Duty Land Tax (SDLT).
Standard Conditions of Sale
Recognised terms established by the Law Society, commonly applied to residential conveyancing transactions.
Standard Variable Rate (SVR)
The default interest rate applied by mortgage lenders once a fixed-term mortgage ends. This rate is generally higher than fixed-rate mortgage products.
Statutory Lease Extension
The right given to leaseholders under the Leasehold Reform, Housing and Urban Development Act 1993 to extend their lease by 90 years through a formal legal process.
SSTC (Sold Subject to Contract)
An indication that a property sale has been agreed in principle but is not yet legally binding, as contracts have not been exchanged.
STPP (Subject to Planning Permission)
A term used in property transactions to express that the deal is conditional upon obtaining planning permission.
Structural Survey
A detailed property inspection report focused on assessing structural integrity.
Subject to Contract (STC)
Denotes that an agreement is not legally binding until formal contracts are exchanged.
Subletting
The act of a tenant renting out part or all of a property to another individual (the subtenant), typically requiring prior permission from the landlord and sometimes the mortgage lender.
Subsidence
The downward movement of ground, usually caused by natural or construction-related factors, that can impact the structure of a property.
Survey
An inspection of a property’s condition. Options range from RICS Condition Reports and HomeBuyer Reports to comprehensive structural Building Surveys or snagging reports for new builds.
T
Telegraphic Transfer (TT) Fee
A bank fee charged for electronic transactions, such as funds transferred to complete a purchase or pay off a mortgage. This is also known as a CHAPS fee.
Tenant
An individual renting and occupying a property owned by a landlord.
Tenants in Common
A type of joint property ownership where two or more individuals hold shares of a property. On death, their share is passed on according to their will or intestacy rules.
Tenure
Specifies the ownership status of a property, such as freehold, leasehold, or commonhold.
Term
The specified duration for repaying a mortgage or the length of a lease.
Tin Mining Report
A specific property search carried out in locations such as Cornwall and Devon, determining whether historic or ongoing mining activities have affected the property.
Title
Legal documentation verifying the ownership of a property.
Title Deeds
Documents confirming legal ownership of a property. For properties registered with the Land Registry, these may no longer be required.
Title Plan
A document from the Land Registry that illustrates the physical boundaries of registered land.
Title Splits
The division of a property’s title deeds into individual titles, often resulting in multiple properties, such as when a freehold building is converted into leasehold units.
Tracker Mortgage
A mortgage where the interest rate fluctuates in line with the Bank of England’s base rate or the lender’s own rate.
Transfer
The legal paperwork required to transfer property ownership, commonly referred to as Form TR1.
Transfer of Equity
The process of transferring part or full ownership of a property, often between individuals following a divorce or separation.
Tree Preservation Order (TPO)
A regulation imposed by the local council to protect specific trees from being damaged or removed without prior written consent.
Tyneside Lease
A distinct leasehold arrangement typically found in maisonettes, also called “criss-cross” or “crossover leases.”
U
Unadopted Highway
An unadopted highway refers to a private road or path that is not officially maintained by local authorities. It may not always offer public access.
Underlease
An underlease occurs when a tenant grants a leasehold interest to another party beneath their own existing lease. This type of lease is not directly held from the freeholder. Many tenancy agreements expressly prohibit the creation of an underlease.
Under Offer
This term is used when a property has an accepted offer but has not yet reached the stage of exchanging contracts.
Unexpired Term
The remaining duration of a lease is referred to as the unexpired term. For example, a lease originally granted for 125 years would have an unexpired term of 100 years after 25 years.
Unregistered Land
This relates to land or property that has yet to be registered with the Land Registry for the first time. Ownership of such land is established using the title deeds.
Utilities
Utilities encompass essential services provided to a property, including gas, electricity, water, telephone landline, and internet access.
V
Vacant Possession
When a property is sold with vacant possession, it is delivered without occupants or any belongings from the previous owner.
Valuation Survey
A mortgage lender typically requires a valuation survey to determine the market value of a property before lending.
Variable Interest Rate
A variable interest rate refers to a loan interest rate that fluctuates over time, generally in line with broader changes in market interest rates.
Variation of a Lease
A variation of a lease occurs when both the landlord and tenant agree to amend the lease terms. This is often done to modernise outdated terms or better reflect the current situation. If a specific clause becomes impractical, it is possible to apply to the First-Tier Property Tribunal for a variation.
Vendor
A vendor is the individual or entity selling a property.
Verbal Offer
A verbal offer is an offer made orally by a prospective buyer but not yet confirmed in writing.
W
Wayleave
A wayleave is a contractual agreement allowing a third party temporary access to privately owned land for specific activities, often in exchange for compensation.
Understanding conveyancing terminology is essential for navigating the complexities of property transactions with confidence. Equipped with this glossary, individuals can better interpret the process, ensuring they make informed decisions and avoid unnecessary confusion. Conveyancing plays a crucial role in safeguarding your interests when buying or selling property, and having clarity on these terms can provide peace of mind during what can often feel like an overwhelming experience.
For professional guidance and straightforward advice throughout your conveyancing journey, engaging a trusted and experienced solicitor is crucial. By doing so, you can ensure your property transaction is handled with precision and care, minimising any potential risks and providing reassurance during this significant milestone.
