The process of buying or selling a property can be a minefield at the best of times. Add unfamiliar terminology into the mix and it can leave some very confused faces. We aim to help simplify the process with our list of terms that you're likely to hear along the way.
The document that is issued by a mortgage lender to a potential buyer and confirms the acceptance of a mortgage offer.
This is provided by a mortgage lender and confirms that they are prepared to lend the potential buyer the funds to complete a purchase, subject to the approval of the property.
A fee charged by some lenders to cover the administrative cost of arranging a mortgage cost – these are often charged to deals, e.g. special or fixed rate mortgages.
A temporary loan, usually carrying a high-interest rate, which allows the recipient to buy a property before selling their existing home.
This is a report on the physical condition of a property.
A mortgage used to buy a property that will be rented out for investment purposes.
The connected line of people who need to sell their current home to buy the next one – if, for example, one link (person) in the chain pulls out of their sale, the whole chain can collapse.
The conclusion of the sale – when the buyer receives the keys.
When two or more purchasers are given a draft contract and the first one to exchange contracts buy the property.
The legal process of transferring the ownership of a property, e.g. from a seller to a buyer.
The documents that prove ownership of a property.
When a borrower fails to meet their agreed repayment schedule – this applies to any kind of loan, including a mortgage.
The money you’ll need to pay upfront to secure a mortgage to buy a home – deposits are usually 10% of a home’s value, but this may vary.
These are fees that are paid by the solicitor on behalf of the buyer, e.g. stamp duty or money transfer fees.
A certificate that details how energy efficient a property is. The certificate ranks properties on a scale of A-G (with A being the most efficient). EPCs offer an estimation of energy costs and recommendations as to how the efficiency of a home can be improved.
A mortgage deal which comes with a predetermined interest rate for a defined period, usually two, three or five years.
Fixtures are items that have become part of a building or land and are included in a sale, e.g. a garage. Fittings are not attached to the building or land and are not included in the sale unless agreed, e.g. kitchen appliances.
The freeholder of a property owns it outright, including the land the property is built on. If you own the freehold of a property, you’re responsible for maintaining the property and the land it sits on.
When a sale is agreed at a certain price, but the seller accepts a higher offer from another buyer.
Where a buyer reduces their offer at the point of exchanging contracts to try to purchase a property for a lower price.
A guarantor commits to making payments, e.g. on a mortgage, when the borrower fails to keep up with their repayments. Guarantors may be a family member or close friend.
Help to Buy is a government scheme which aims to help people with small deposits buy a new-build home.
When a property owner asks an estate agent to market their property for sale.
A fee charged by the Land Registry to record the change in ownership of a property.
The ownership and right to occupy a property by way of a lease for a given period – leases usually range from 90 to 999 years.
Where the sale value of a property is less than the amount outstanding on a mortgage.
When a conveyancer, on behalf of the buyer, sends a list of questions about a property to the seller’s conveyancer.
Completion of the full and final repayment of a mortgage.
The option to buy a share of a property (between 25-and 75%) from a housing association – you will then pay an affordable rent on the share of the property you don’t own.
Tax paid to the government by a buyer after purchasing a property – the rate of tax paid depends on the value of the home bought.
A provisional agreement that is not yet legally binding as contracts have not been exchanged – at this point either party can still withdraw from the agreement.
A report determining whether there are any structural faults in a property.
A term used by estate agents to cover the process of finding a property’s market value. Get your property valued here.
A vendor is a person selling a property.
If you're selling a property for the very first time, you might not be fully aware of the process that you need to go through from making that initial decision to sell to exchanging contracts.
But if you are fully aware of the process and committed to your sale, you can often breeze through the whole process.
When choosing your estate agent, the most important question to ask yourself is this: "who will get the best result for me?" When it comes to selling, the 'cheapest' option isn't always the right one.
You need to consider;
Get a couple of estate agents to value your home to compare their offering and fees.
Add up the estate agent fees, legal fees, removals and all other costs associated with your move. Do this now so that there are no nasty surprises further down the line, this way you will also be able to calculate if selling your property is feasible and there is any profit in it. Your estate agent will make their sales fee's available from the moment you book your valuation, in some cases, like ourselves at Argyle, we can also offer financial advice.
Be aware, if you're selling a property and not using the funds to move into another, you might have to pay Capital Gains Tax. This is another expense to be aware of from the start of your sales journey.
It is a legal requirement that all properties in England and Wales are marketed with an Energy Performance Certificate (EPC) which gives your property an energy efficiency rating. Your estate agent will usually organise this, along with your professional photographs for you. When it comes to photography, this is the first impression someone is going to get of your home online and it could make or break their decision to arrange a viewing. Your estate agent will send a professional photographer to your property, to take photos and a video for a virtual tour (if applicable) so stage your home to look its best.
Almost all buyers now start their property search online, so make sure you’re making the most of the internet. You should expect your agent to list your property on Rightmove and Zoopla as a bare minimum. But you can add to its online exposure by sharing locally on social media. Make sure your property details are correct and unique, there are only so many times you can read the same opening description about 5 very different properties!
You want potential buyers to be able to imagine themselves in your home. Think back to all the things that made you fall in love with the property and the area too and recreate this for your viewing. You can read our top tips for making your home more appealing to buyers, but most importantly, try to keep clutter out of the way, ensure the place is clean and keep your pets out (if at all possible!)
Depending on the type of agent you have chosen, you can opt to show people around yourself, or ask your estate agent to conduct the viewing. Due to the latest COVID-19 restrictions, Argyle is allowing virtual viewings of properties via video link, so you can still sell your property without the requirement of letting a stranger into your safe space.
You will be notified of offers by phone and in writing by your estate agent. Consider the amount you are being offered and the financial position of the buyers including their chain. You don't have to accept the first offer, you have complete control over the price you want and have the power to negotiate if you wish.
Only at the point of agreeing on a sales price and accepting an offer do you need to instruct a solicitor. You can give a firm a 'heads-up' beforehand, but they won't be able to start acting on your behalf until the offer acceptance is official. The legal stages can take some time, but they are essential, you cannot sell your home without them. It’s the legal transfer of your property to the buyer, they will also sort out ant stamp duty and capital gains taxes.
The solicitors for both parties will confirm that the sale is agreed, subject to contract. You will receive a Memorandum of Sale, but at this stage, either party can still withdraw without penalty. It is only official once the sale is complete and contracts are exchanged. At this point the funds are released, the third-parties take their cut and your new buyer can collect their keys.
Moving house can be one of the most stressful things you can ever do, so it's a good idea to have a handy new home checklist ready before you start.
There are a number of tasks you should get completed once you’ve moved in. Then you can chill out and enjoy your new home!
Check every lock
You want to feel secure in your new home, so if you can afford it, it’s a good idea to change all the locks and get new keys for you and your family.
If you can’t replace the locks, ensure that you get all of the keys from the previous owner and keep them somewhere safe. You should also check that you have a key for every lock, including windows, utility meters, and outdoor storage sheds and garages.
Test fire alarms
As soon as you are in your new home, you should check all of the fire alarms and test them. Replace the batteries with new ones just to be extra safe, and if you have a carbon monoxide tester, check that as well.
If the home has neither of these, make sure you buy some as soon as possible and get them installed, and test them regularly.
Change toilet seats
This might not be obvious to everyone but when you take a moment and think about it, you want to do it as soon as you can!
A nice clean loo seat is a must once you’ve moved in, along with any other hygienic fixtures, such as toilet brushes, soap dishes, shower curtains, bath mats, etc...
Update your address
There are a lot of things you’ll need to update once you’re in your new home so it’s a good idea to get a list together early so you can tick them off one by one.
Here is a great moving address list you can use from the BBC.
Check the utilities
You will probably have already been shown this when you viewed the house, but if not, make sure the previous owners tell you where to find the utility boxes before they leave.
You’ll need to know where the electric and gas meters are (where applicable), as well as the water stopcock in case you need to turn off the water.
Special cleaning products
Sometimes a house will come with special finishings, such as treated wood for worktops, varnished floors, specific glass or tiles, etc… so you will need to check with the previous owners to know what’s the best way to treat them.
If you can’t get information from the owners, you will need to do your own research to ensure you get the right cleaning/treatment products for the finishings. You don’t want to spend money on a home with a beautiful oak staircase if you don’t know how to keep it looking brilliant.
Bin collections
Last but not least, find out when your local bin collections are. Moving house can be messy so you will want to know when you can get rid of all your rubbish!
There are a few ways to do this; you can either check with your local council, ask the previous owners or simply look out for when your neighbours are putting their bins out!
Moving house doesn’t need to be any more stressful than it already is, so use these tips to make things easier for yourself! If you’re looking to buy or sell in Cleethorpes, Grimsby, or the surrounding areas, get in touch with Argyle Estate Agents today.
