Property Glossary
UK real estate terminology explained. Essential knowledge for buyers, sellers, and investors navigating the London property market.
Ask a QuestionProperty Types
- Freehold
- Outright ownership of both the property and the land it sits on, with no time limit. The owner has full control and responsibility. Most common for houses in the UK.
- Leasehold
- Ownership of a property for a fixed term (e.g., 99, 125, or 999 years) as specified in the lease. Common for flats. The leaseholder owns the property but not the land, which belongs to the freeholder.
- Commonhold
- A form of ownership where you own your flat freehold within a commonhold development. Relatively rare in England and Wales. Provides freehold benefits without lease expiry concerns.
- Mansion Block
- Purpose-built apartment building, typically Victorian or Edwardian, with multiple floors and communal areas. Common in prime London areas like Kensington and Chelsea.
- Mews House
- Originally stable buildings behind larger Georgian or Victorian houses, now converted to desirable residential properties. Often with cobbled streets and a village-like atmosphere.
- Period Property
- Property built before 1914, typically Georgian, Victorian, or Edwardian. Valued for original features like high ceilings, fireplaces, and architectural details.
- New Build
- Property that has never been lived in, purchased directly from a developer. Often comes with warranties and modern specifications.
- Lateral Apartment
- Large apartment occupying an entire floor of a building. Created by combining multiple units or designed as a single large residence. Common in prime London mansion blocks.
Transaction Terms
- Exchange of Contracts
- The point at which a property sale becomes legally binding. Buyer pays a deposit (typically 10%) and both parties are committed. Pulling out after exchange incurs significant penalties.
- Completion
- The date when ownership officially transfers from seller to buyer. The buyer pays the remaining balance, and the seller hands over the keys.
- Chain
- A sequence of linked property transactions where each sale depends on another. For example: A buys from B, who buys from C. Delays in one transaction affect the entire chain.
- Chain-Free
- A sale where the seller is not dependent on buying another property to complete. Desirable as it reduces risk of delays and complications.
- Gazumping
- When a seller accepts a higher offer from another buyer after already agreeing to sell to you (before exchange of contracts). Legal but frustrating. Common in competitive markets.
- Gazundering
- When a buyer reduces their offer just before exchange of contracts, exploiting the seller's commitment. Often happens if market conditions change.
- Under Offer
- A property where the seller has accepted an offer but contracts have not yet been exchanged. The sale is not yet legally binding.
- SSTC (Sold Subject to Contract)
- Status indicating an offer has been accepted and the sale is proceeding, but exchange has not yet occurred. The property may still fall through.
- Conveyancing
- The legal process of transferring property ownership from seller to buyer. Handled by solicitors or licensed conveyancers. Includes searches, contracts, and Land Registry registration.
Financial Terms
- Stamp Duty Land Tax (SDLT)
- Tax paid by buyers on property purchases in England and Northern Ireland. Rates vary by price (current from April 2025): 0% on first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, 12% above £1,500,000. Buyers who already own another dwelling pay a 5% surcharge on the whole price, and non-UK residents pay a further 2% surcharge.
- Ground Rent
- Annual payment made by a leaseholder to the freeholder for the land the property sits on. Being phased out for new leases from 2022 (set at peppercorn/zero for new leases).
- Service Charge
- Regular payment (usually annual or quarterly) covering building maintenance, insurance, communal area upkeep, and services. Varies widely based on building amenities.
- Reserve Fund (Sinking Fund)
- Money saved by a building's management for major future works such as roof replacement, lift repairs, or external decoration. Healthy reserve funds indicate good building management.
- Deposit
- The initial payment made by the buyer, typically 10% of the purchase price, paid at exchange of contracts. For mortgages, refers to the amount paid from personal funds (not borrowed).
- Equity
- The portion of a property's value owned outright, i.e., the property value minus any outstanding mortgage. Equity increases as you pay off the mortgage or if property values rise.
- LTV (Loan to Value)
- The ratio of mortgage amount to property value, expressed as a percentage. A £400,000 mortgage on a £500,000 property is 80% LTV. Lower LTV typically means better mortgage rates.
- Yield
- The annual rental income expressed as a percentage of property value. Gross yield = (Annual Rent / Property Value) × 100. Net yield deducts costs like maintenance and management.
Legal Terms
- Title Deeds
- Documents proving ownership of a property. Modern titles are registered electronically with the Land Registry. Historic properties may have paper deeds for reference.
- Land Registry
- Government body maintaining the register of property ownership in England and Wales. All property sales must be registered. Provides publicly accessible ownership information.
- Searches
- Investigations carried out during conveyancing to uncover potential issues. Includes local authority, environmental, water/drainage, and mining searches. Essential due diligence.
- Survey
- Professional inspection of a property's condition. Types include: Condition Report (basic), HomeBuyer Report (standard), or Building/Structural Survey (comprehensive). Highly recommended for older properties.
- Covenant
- Legal obligation attached to a property, restricting what owners can do. May include restrictions on alterations, use, or maintenance requirements. Runs with the land (applies to all future owners).
- Lease Extension
- Process of extending a leasehold term. Leaseholders have statutory rights to extend after owning for 2 years. Important to maintain lease length above 80 years to avoid marriage value.
- Marriage Value
- The increase in property value when a short lease is extended. Below 80 years remaining, lessees must pay 50% of this increase to the freeholder when extending.
- AML/KYC
- Anti-Money Laundering and Know Your Customer checks required by UK law. All buyers must verify identity and prove legitimate source of funds. Applies to all property transactions.
London-Specific Terms
- Prime Central London (PCL)
- The most expensive and prestigious areas of central London, including Mayfair, Knightsbridge, Belgravia, Chelsea, and Kensington. Characterized by period architecture, excellent amenities, and high property values.
- Super-Prime
- The highest tier of the luxury property market, typically defined as properties valued at £10 million or more. Concentrated in Mayfair, Knightsbridge, and Belgravia.
- Garden Square
- Residential development around a private central garden, typically Georgian or Victorian. Access is limited to residents with keys. Examples: Cadogan Square, Egerton Gardens.
- Portered Building
- Residential building with a porter or concierge on-site, providing security, parcel handling, and other services. Common in prime London mansion blocks.
- Off-Market
- Properties sold privately without public advertising. Common in prime London to maintain privacy. Buyers typically learn about them through buyer-side advisors who make discreet enquiries on their behalf.
- Pre-Market
- Properties being prepared for sale but not yet publicly listed. Early access allows viewing before competition from other buyers.
Property Knowledge
Property Glossary
AML/KYCChainChain-FreeCommonholdCompletionConveyancingCovenantDepositEquityExchange of ContractsFreeholdGarden SquareGazumpingGazunderingGround RentLand RegistryLateral ApartmentLease ExtensionLeaseholdLTV (Loan to Value)Mansion BlockMarriage ValueMews HouseNew BuildOff-MarketPeriod PropertyPortered BuildingPre-MarketPrime Central London (PCL)Reserve Fund (Sinking Fund)SearchesService ChargeShare of FreeholdSSTC (Sold Subject to Contract)Stamp Duty Land Tax (SDLT)Super-PrimeSurveyTitle DeedsUnder OfferYield
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