Surveyor

For residential properties, a surveyor normally provides professional advice on the value and condition of a property. They are regulated by the Royal Institution of Chartered Surveyors (RICS) to ensure standards and protocols are met. They will help flag up potentially expensive defects, issues with a property, and many will be able to produce a market valuation.

Market Value

The technical definition of a market value is a RICS registered valuer’s opinion of the estimated price a residential property will sell for on a given date, between a willing buyer and a willing seller, in an arms length transaction after a reasonable marketing period with all parties acting with knowledge, prudence and without compulsion.

This will be used by a mortgage company to determine if they will lend money to you.

It should not be confused with an opinion of value given by an estate agent. An estate agent will often give expert advice, but it is not classed as a market value.

RICS Level 2 Home Survey

Often called a home buyers survey.

It is instructed by the buyer of the property. The level 2 survey is the most popular survey. It is for traditionally built homes, constructed in the past 100 years or so, with one or two extensions.

It is used to uncover unseen defects in a property so a buyer is aware of what they are buying and to help them potentially renegotiate the price if there is a significant issue.

The survey will look at the inside and outside of the property, and check for damp and structural issues. It will also include a desktop environmental search, a check on the boundaries, potential legal issues with the site and check any garages.

It can also include a market valuation.

RICS Level 3 Home Survey

Often called a building survey or structural survey.

It is also instructed by the buyer. It covers everything a Level 2 Home Survey does, but it is more in-depth. It will identify the building materials used in the construction of the property and comment on the likely maintenance and repair required in the future.

It is suitable for more complex, non traditionally constructed properties with more than one extension built over approximately 100 years.

EPC

An Energy Performance Certificate (EPC). It is a measure of how energy efficient a property is. They are valid for up to 10 years.

A valid EPC is required to sell a residential property and is the responsibility of the seller. If an existing EPC is still valid, you might not need to get a new one.

There are rules relating to an EPC if you are planning to let the property. You cannot currently let a property if it has an F rating or below. 

Mortgage Valuation

A market valuation undertaken by the bank or mortgage company to check the value of the property is sufficient to lend money against.

It is worth noting that it is not a full survey of the property. Just because the mortgage company is happy to lend on the property, it does not mean there are not unseen defects at the property.

Mortgage Deposit

The equity or cash you are putting towards the purchase of a property. The remainder of the money needed to buy a property will come from a mortgage lender.

Mortgage Broker

A mortgage broker can advise on getting a mortgage. They will be able to talk through how much you can borrow, the rates, costs and process of obtaining a mortgage for your new property. A broker will also often complete the mortgage application for you.

Mortgage Offer

A mortgage offer is a formal and binding contract from a mortgage company to provide a mortgage for a home purchase. It is given after the mortgage company has reviewed and been satisfied with a mortgage application and mortgage valuation. It typically lasts between 3-6 months.

Conveyancer

A conveyancer is often a solicitor. They will undertake several important tasks when buying and selling a home.

When buying a house, a conveyancer will negotiate and agree the contract that will allow the purchase to progress and be completed. They will receive the property information form and agree with the other side on what fixtures and fittings will be left in the property.

They will also undertake local searches to ensure there are not any significant issues with the land and property you are buying, which might affect how you use the property. If you are selling, they will perform similar tasks but on the other side.

Once the sale has completed, the conveyancer will deal with registering the new ownership on the land registry, paying stamp duty on your behalf and sending the title deeds to your mortgage company.

Property Information Form

A document produced by the seller to tell the buyer all about the property. It will include lots of information, like any boundary or access disputes, details on extensions and alterations, services and environmental issues.

Local Searches

An often-used phrase and one that can sometimes hold up completion of a property.

A conveyancer will undertake local searches to check if there are any potential issues with the property. These could be related to planning permissions, highways, conservation zones, restrictions tied to the land the property is on and services at the property.

Stamp Duty

Also called Stamp Duty Land Tax (SDLT).

It is a tax payable by the buyer when buying freehold or leasehold land or property in England and Northern Ireland.

The current threshold is £125,000 so if the price is below this no tax is payable. The tax rates payable do change so its worth looking at the Government website for full details and there is a useful SDLT calculator to assess what you might have to pay.

Offer

An offer is when an interested party ‘offers’ to purchase the property. The offer will also often include the position of the buyer and any conditions associated with the purchase, such as if they are a cash buyer, if they in a chain and the proposed timescales.

It’s worth noting it is not legally binding in England and Northern Ireland.

Under Offer

An offer has been made by the potential buyer which the seller is considering.

Sold Subject to Contract

The seller accepts the buyers offer.

At this point a conveyancer on both sides will often be instructed to progress the sale.

Again in England and Northern Ireland the sale is not legally binding at this point.

Exchange Deposit

This is agreed between the parties but is often 10% of the purchase price. It is paid to the sellers conveyancer on exchange and can be lost if the buyer breaks the contract.

On completion of the purchase, the exchange deposit goes towards the mortgage deposit so you do not need save up both!

Exchanged

It is the point where the mortgage offer is in place, sales contracts are agreed and signed, the timing to complete has been included in the contract, and the exchange deposit has been transferred to the seller’s conveyancer. Once the signed contracts are ‘exchanged’ by the conveyancers, the transaction becomes legally binding in England and Northern Ireland.

Completion

The point at which the property becomes yours and you can move in!

The timing to complete is agreed in the contract, it is usually anywhere between one and four weeks.