The TPBC Comprehensive Jargon Buster
Selling a House Quickly Needn't Be So Daunting
Selling a house can be a daunting task, especially when there are so many complicated terms associated with it. We’ve created a jargon buster to explain what everything means so you can sell your property with confidence, backed with the relevant knowledge.
This is an estimate of the current value of a property, according to an estate agent or surveyor.
A type of sale where a property will be sold to the highest bidder. Often useful for properties that need significant restoration. If you’re new to auctions then do your research first or ask someone with experience of them, such as our agents.
This is a detailed report on a property and its construction. It can also be referred to as a structural survey and will be carried out by an expert to identify any areas of concern regarding the property. The expert will usually be accredited by the Royal Institution of Chartered Surveyors.
If you’re selling your property to someone who also needs to sell their property then this is a chain. If a buyer pulls out then the chain will break and a seller will need to replace the link before a sale can continue. TPBC can become the link in that chain.
The person accredited to the Royal Institution of Chartered Surveyors who carries out surveys on a property.
Fees payable to the company that sells a property. The Property Buying Company does not charge commission – everything is included in the service they provide. Be wary of companies that have any hidden charges.
The end of the property buying process, when the legal ownership transfers from seller to buyer.
Conditions of Sale
This is a document that outlines the rights and duties of the buyer and the seller.
The binding agreement document that is signed by both buyer and seller to complete the purchase of a property.
The overall name for the legal and admin work required to transfer ownership from one person to another. The person who handles this process is a Conveyancer who is usually a solicitor or property lawyer.
The legal documents that a home owner will have to prove their legal rights to it. Also known as Title Deeds, they will include the mortgage documents, conveyancing documents, contracts and wills.
Energy Performance Certificate (EPC)
A ranking of how energy efficient a property is from A-G with A being the most efficient. It will estimate energy costs for the property and suggest ways to improve your energy usage. An EPC is legally required when selling a property.
This is the part of the property you have paid off already i.e. the part of the property without a loan secured against it. This includes the deposit, capital you’ve paid off the loan and any increase in value to your property.
When signed contracts, confirming the transfer of ownership of a property, are exchanged between the buyer and seller. This is a legally binding process. This is the point that the buyer will pay their deposit so if they pull out after this point then they’ll forfeit this.
Full Market Value (FMV)
This is the estimated value of a property that a seller might expect to receive under normal circumstances i.e. if the property was being sold via an estate agent. The Property Buying Company is unable to offer FMV, but will always offer a fair price.
If you own the freehold then you own both the property and the land it stands on outright.
This is when part of a freehold property hangs over and into another freehold property. An example of this would be a covered walkway running between two properties.
Houses in Multiple Occupation (HMO)
If a home has shared facilities such as a bathroom, toilet and kitchen and has at least three tenants within the household, this is an HMO. The most common examples are hostels, student accommodation and houses split into bedsits.
A Governmental department that records ownership of land in England and Wales. A conveyancer will request searches from the Land Registry as part of any property transaction. There is a set fee payable to register the ownership of the property. The Property Buying Company includes this fee in their service.
If you occupy a leasehold property then you will have a lease agreement that outlines the period of time you can reside within the property. You’ll have to pay rent to the owner of the freehold. Often, leases are long term and can range from 90 to 999 years.
Local Authority Search
The appointed solicitor will carry out checks with the local council regarding any potential future risks to the property or surrounding area.
If the market value of a property becomes less than the mortgage loan balance then this is considered negative equity. The Property Buying Company is unable to buy properties with negative equity.
When a party interested in purchasing a property indicates how much they would be willing to pay for it. This isn’t legally binding and can be withdrawn at any time.
Open Market Value
The price a property is likely to achieve if it was for sale.
The questions that a buyer’s solicitor will initially ask the seller of a property before the exchange of contracts can take place.
Probate is the official process by which a will can be validated when someone dies and leaves their property to another person. The property will usually have to be valued for inheritance tax purposes. This will be carried out by a representative from the Inland Revenue. Probate must be granted before contracts on a property can be exchanged.
This is how much money it will cost to fully repay a mortgage. This figure will include any interest and early redemption charges.
Your mortgage lender can take possession of your property if you fall behind on repayments. This could lead to you being evicted from the property. Read more about how to stop house repossession here.
Short for Royal Institution of Chartered Surveyors - a professional body promoting and enforcing the highest international standards in the valuation, management and development of land, properties, construction and infrastructure.
Your conveyancer will make enquiries to the local authority and Land Registry to check there isn’t anything of concern that may affect the property or its surrounding area. This will cost between £250 and £300 and will often be included in the overall solicitor’s fee. The Property Buying Company includes these fees in their service.
Share of Freehold
If you purchase a flat that has a share of the freehold then you become part of the company or group of people who make decisions about the property and maintain it. You must continue to follow the terms outlined in your lease.
Stamp Duty Land Tax (SDLT)
This is the tax that a buyer must pay to the government for the purchase of a property. The rates can fluctuate between 1% and 4% depending on the purchase price of the property. You’ll pay an extra 3% if you go on to buy an additional home that isn’t your main residence.
Subject to Contract
This is an agreement between the buyer and seller that is not, at this stage, legally binding. Either party can still pull out of the transaction.
Tenants in Common
This is a type of optional shared home ownership. It doesn’t always have to be shared equally and if one of the owner’s dies, their part in the property will be passed to their heirs, instead of the other owner(s).
This states the conditions as to whether a property is freehold or leasehold.
These are all the services required to run a home e.g. gas, electricity, water, internet etc. You must continue to pay your utility bills, even if you’re selling your house. Find out more here.
The seller of a property.
This is the annual percentage of income generated from a rental property. It is calculated as a percentage of the property value. If your property was valued at £200,000 and your annual rental income is £12,000, your annual rental yield will be 6%.
How much can you get?
Complete a few details to see if your property qualifies and get a cash offer
5 simple steps to having your property sold!
Our quick (but thorough) 5 step sale process means we can buy your house fast and at a great price
Check to see if your property is eligible check now
Receive an offerfrom us within 24 hours
We’ll visit your property & formalise our offer
We’ll instruct solicitors and pay all fees
Exchange contracts & complete as usual
Rated as Excellent - aww thanks guys!
Independent reviews of our service from reviews.co.uk
I have found them very helpful particularly Jessica. It is a shame that I have been charged when at this stage I cannot proceed, but I recognise that this is to cover the cost of photographs taken.
Friendly staff on telephone
Mark was very honest and helpful about the process.
The gentleman on phone was Charming unfortunately offer too low
More than helpful in trying to sort out a deal for my house, have no complaints about the process or time scales in getting back to me with an offer
Why sell your house to us?
We’re one of the leading buyers of residential/commercial property and land in England and Wales. We buy using our own cash facility meaning we can offer the best prices in our industry and complete the sale quicker than anyone else.
|Your options||Average sale length||Typical cost to you|
|The Property Buying Company||2-3 weeks||£0.00|
|Other House Buying Companies||2-10 weeks||£1000|
|Property Auction||6-10 weeks||£2500-£5000|
|Online Estate Agents||16-52 weeks||£1000(upfront)-£5000|
|Estate Agents||16-52 weeks||£5000|
Unlike most of the other options available to you, we are not a broker or middle man, meaning you skip the fees and get a sale quickly and easily.
The Property Buying Company is registered with the Property Ombudsman and is a member of the National Association of Property Buyers
Properties bought by us for cash in
the last 2 years
Of our own money spent buying
property for cash
Average time taken from initial offer
We'll beat any genuine cash offer!
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