Английский для специалистов по недвижимости: ключевая лексика

"exchange of contracts"

The point in a property sale when both buyer and seller sign and swap identical contracts, making the transaction legally binding.

"After the survey results came back clear, both parties were ready to proceed to exchange of contracts."

"completion date"

The agreed date on which the property sale is finalised, the purchase price is paid in full, and ownership is transferred to the buyer.

"The solicitors agreed on a completion date four weeks after exchange to allow the seller time to vacate."

"gazumping"

When a seller accepts a higher offer from a new buyer after already agreeing a sale with the original buyer, before contracts are exchanged.

"They lost the property to gazumping when a cash buyer offered £30,000 above the agreed price at the last minute."

"conveyancing"

The legal process of transferring property ownership from seller to buyer, typically handled by a solicitor or licensed conveyancer.

"The conveyancing process took eight weeks due to a complex leasehold title that required additional searches."

"memorandum of sale"

A document issued by the estate agent confirming the agreed sale terms, sent to solicitors to begin the legal process.

"Once the offer was accepted, the agent issued the memorandum of sale to both sets of solicitors the same afternoon."

"chain"

A series of linked property transactions where each sale depends on the completion of the next, creating delays if any link fails.

"The deal fell through because the first-time buyer at the bottom of the chain could not secure a mortgage offer."

"draft contract"

The initial version of the legal agreement for a property sale, prepared by the seller's solicitor and sent to the buyer's solicitor for review.

"The buyer's solicitor raised several enquiries after reviewing the draft contract and the property information form."

"title deeds"

The legal documents proving ownership of a property, including the history of past ownership and any rights or restrictions attached to it.

"The lender's solicitor examined the title deeds to confirm there were no restrictive covenants that would affect the planned development."

"comparable sales (comps)"

Recently sold properties that are similar in size, condition, and location, used as benchmarks to determine market value.

"The valuer identified six comparable sales within half a mile to support the proposed asking price."

"gross development value (GDV)"

The estimated total market value of a development project once all units are complete and sold or let at market rates.

"The developer's appraisal showed a gross development value of £12 million against a total build cost of £8 million."

"capitalisation rate (cap rate)"

A metric expressing the ratio of a property's net operating income to its current market value, used to assess investment return.

"With a net operating income of £60,000 and a purchase price of £800,000, the property offers a cap rate of 7.5%."

"reinstatement value"

The cost of rebuilding a property from scratch to its current specification, used as the basis for buildings insurance.

"The surveyor recommended insuring the Victorian terrace for a reinstatement value of £320,000, well above its market price."

"red book valuation"

A formal written valuation carried out by a RICS-qualified surveyor in accordance with RICS Valuation – Global Standards (the Red Book).

"The executor of the estate required a red book valuation for probate purposes to establish the property's value at the date of death."

"market value"

The estimated price a property would achieve if sold on the open market between a willing buyer and a willing seller, both acting knowledgeably.

"The lender's surveyor assessed market value at £450,000, £25,000 below the agreed purchase price, causing the mortgage to be revised."

"depreciation"

A reduction in the value of a property over time due to age, wear and tear, obsolescence, or changing market conditions.

"The office block had suffered significant depreciation due to its poor energy efficiency rating and outdated mechanical systems."

"yield"

The annual rental income from a property expressed as a percentage of its purchase price or current market value.

"At a purchase price of £200,000 and an annual rent of £12,000, the gross yield on the investment property is 6%."

"loan-to-value ratio (LTV)"

The ratio of a mortgage loan amount to the appraised value of the property, expressed as a percentage; a higher ratio indicates greater lender risk.

"The lender offered a lower interest rate once the borrower reduced the loan-to-value ratio below 75% by increasing the deposit."

"bridging loan"

A short-term, high-interest loan used to bridge the financial gap between buying a new property and selling an existing one.

"The developer secured a bridging loan to purchase the site at auction before arranging longer-term development finance."

"interest-only mortgage"

A mortgage where the borrower pays only the interest each month and repays the full capital at the end of the term.

"The landlord opted for an interest-only mortgage to maximise monthly cashflow from the buy-to-let property."

"mortgage in principle"

A conditional agreement from a lender indicating how much they would be willing to lend, before a full application is submitted.

"Having a mortgage in principle gave the buyers confidence to make an offer and showed the seller they were serious."

"early repayment charge (ERC)"

A penalty fee charged by a lender when a borrower repays a mortgage or loan before the end of an agreed fixed or discounted period.

"She decided to stay with her current lender rather than remortgage because the early repayment charge would have wiped out any saving."

"negative equity"

A situation where the outstanding mortgage balance exceeds the current market value of the property.

"After house prices fell 15%, thousands of homeowners found themselves in negative equity and unable to sell without making a loss."

"stamp duty land tax (SDLT)"

A government tax payable by the buyer on the purchase of land or property in England and Northern Ireland above a certain threshold.

"The accountant calculated that stamp duty land tax on the £600,000 purchase would amount to £20,000."

"amortisation"

The gradual repayment of a mortgage loan through regular scheduled payments that cover both principal and interest over the loan term.

"On a repayment mortgage, the early years see most of each payment go to interest, with the amortisation of principal accelerating later."

"service charge"

A fee paid by leaseholders or tenants to cover the cost of maintaining, repairing, and managing the common areas of a building.

"The service charge for the apartment block increased by 12% to cover the cost of repainting the exterior and replacing the roof."

"break clause"

A provision in a lease allowing either the landlord or tenant to terminate the agreement early at a specified date, subject to notice requirements.

"The tenant exercised the break clause at year three after deciding to relocate its head office to a larger building."

"dilapidations"

The state of disrepair in a property at the end of a tenancy, and the landlord's claim against the tenant for the cost of repairs required under the lease.

"The landlord served a schedule of dilapidations claiming £40,000 for repairs and redecoration when the commercial tenant vacated."

"rent review"

A mechanism in a commercial lease that allows the rent to be adjusted at set intervals, usually to open market value or in line with an index.

"The lease included an upward-only rent review every five years, preventing the rent from falling even if market rents declined."

"void period"

A period when a rental property stands empty and generates no income for the landlord, while fixed costs such as mortgage payments continue.

"The letting agent worked hard to minimise the void period by advertising the flat two months before the current tenant moved out."

"section 21 notice"

A legal notice used by landlords in England and Wales to regain possession of a property from an assured shorthold tenant without giving a specific reason.

"When the landlord decided to sell, he served a section 21 notice giving the tenant two months to vacate."

"licence to alter"

Written consent from a landlord allowing a tenant to make specified alterations to a leasehold property during the term of the lease.

"The commercial tenant obtained a licence to alter before fitting out the retail unit with a new mezzanine floor."

"sinking fund"

A reserve fund built up from regular contributions by leaseholders to cover major future repair or replacement costs for a building.

"The managing agent recommended increasing contributions to the sinking fund to prepare for the planned lift replacement in five years."

"planning permission"

Formal consent from the local planning authority to carry out a specific development or change of use of a building or land.

"The developer submitted a planning application for 45 residential units and received planning permission eight months later."

"change of use"

A material change in the way a property is used that requires planning consent, such as converting offices to residential apartments.

"The investor obtained change of use consent to convert the redundant warehouse into a mixed-use retail and residential scheme."

"section 106 agreement"

A legal obligation imposed by the local planning authority on a developer as a condition of planning permission, typically to fund affordable housing or infrastructure.

"The section 106 agreement required the developer to provide 35% affordable housing and contribute £500,000 to local transport improvements."

"viability assessment"

An analysis of a development project's financial feasibility, typically submitted to justify a reduced affordable housing contribution.

"The developer commissioned a viability assessment demonstrating that the scheme would be unviable if required to deliver more than 20% affordable units."

"permitted development rights"

Rights allowing certain building works and changes of use to be carried out without applying for planning permission, subject to conditions.

"The homeowner added a single-storey rear extension under permitted development rights, avoiding a lengthy planning application."

"construction programme"

A detailed schedule setting out the sequence and timing of all activities required to complete a building project.

"The project manager updated the construction programme after the steel frame delivery was delayed by six weeks."

"practical completion"

The stage in a construction contract when the building is finished and ready for occupation, even if minor snagging items remain outstanding.

"The contractor issued a certificate of practical completion, triggering release of the first half of the retention money."

"ground rent"

A periodic payment made by the leaseholder of a property to the freeholder, as required by the terms of a long leasehold agreement.

"The new legislation capped ground rent on residential long leases at a peppercorn, effectively zero, for newly created leases."

"real estate investment trust (REIT)"

A company that owns income-producing real estate, allowing individual investors to buy shares and receive a share of rental income without owning property directly.

"The pension fund increased its allocation to a diversified REIT to gain exposure to commercial property without management responsibilities."

"net present value (NPV)"

A financial metric that calculates the difference between the present value of projected cash inflows and outflows of an investment to assess its profitability.

"The investment committee approved the acquisition because the discounted cashflow model produced a positive net present value at the target return rate."

"internal rate of return (IRR)"

The annualised rate of return at which the net present value of an investment's cash flows equals zero, used to compare the profitability of different projects.

"The development scheme was projected to deliver an internal rate of return of 18%, comfortably above the fund's 12% hurdle rate."

"sale and leaseback"

A transaction in which a property owner sells an asset to an investor and simultaneously leases it back, releasing capital while retaining operational use.

"The supermarket chain raised £200 million through a sale and leaseback of its distribution centres, using the proceeds to fund store expansion."

"prime yield"

The capitalisation rate applied to the very best properties in the best locations, letting to top-quality tenants on long leases; a proxy for market sentiment.

"Increased investor demand compressed prime yields for central London offices from 5.5% to 4.75% over the course of the year."

"off-market"

A property that is available for purchase but is not publicly listed or advertised, typically sold through private negotiation.

"The fund acquired the logistics portfolio off-market after its relationship with the vendor's adviser gave it early access to the opportunity."

"portfolio diversification"

A strategy of spreading real estate investment across different property types, geographies, or lease structures to reduce risk.

"The manager rebalanced the fund through portfolio diversification, reducing overexposure to retail and increasing holdings in industrial assets."

"total return"

The overall gain from a property investment over a given period, combining rental income yield and capital appreciation or depreciation.

"The fund delivered a total return of 11.2% for the year, with 5% from income and 6.2% from capital growth."