Ten Commonly Searched Property Terms and Their Meaning
Buying, selling and leasing property can be an exciting but sometimes intimidating process, especially when you throw in a lot of often confusing industry jargon to boot. The ten most searched-for property terms are explained in simple terms here so that from leasehold to gazundering you know exactly what you are talking about.
One of the most feared words in the property world. Gazumping is when a buyer has had an offer verbally accepted by a seller but the seller accepts a higher offer from another purchaser before the sale is complete.
Gazundering sees a buyer lower their offer at the last moment just before contracts are exchanged. It can leave sellers feeling forced to accept the lower offer rather than go back to square one.
Usually carried out by a solicitor or conveyancer, this involves the legal transfer of property from one person to another, usually a seller to a buyer. Conveyancing costs should be factored in when budgeting for your sale or purchase. Average conveyancing costs in the UK for buying are around £1,040. Get conveyancing costs explained in further detail.
Capital Gains Tax
Capital Gains Tax is paid on the profit you make when you sell something that has increased in value. In property, this applies to the sale of properties which are not the primary residence. How much Capital Gains Tax you pay depends on rules set out by the government.
A freehold means you own a property and the land it is on it for an unlimited period. Most homes are sold as freehold.
A leaseholder owns a property for a set period but has no claim to the land it is on. Leasehold agreements make sense in the case of flats.
Power of Attorney
This is a legal document allowing someone to make financial and legal decisions on somebody else’s behalf – most often used when people no longer have the mental capacity to take their own decisions.
Probate is a court order officially proving a will to deal with a deceased person’s estate and affairs.
A buy-to-let property is one bought to rent out to tenants rather than lived in by the buyer. This can generate income through monthly rent or a capital gain when they sell.
A property chain is a series of linked house purchases and your own purchase or sale depends on those either side of yours. A property chain usually begins with someone who is buying and not selling and ends with someone who is selling and not buying.