Estate Agent Jargon Buster - E to J

E

Early Repayment Charge (ERC)
A charge levied by the lender as a penalty if a mortgage is paid off within a specified period.

Endowment mortgage
Interest-only repayments combined with monthly premiums into an endowment policy designed to pay off the loan at the end of the term.

Energy Performance Certificate (EPC)
An EPC measures the energy efficiency of a property using a scale of A-G. It is a legal requirement to have a valid EPC commissioned before a property can be marketed for sale or to rent

Equity
The difference between the value of a property and the amount of mortgage owed.

Excess
A contribution you are required to pay towards a claim you make on your insurance policy.

Exchange of contracts
The point at which signed contracts are physically exchanged, legally binding the seller and buyer to the sale and purchase of a property at the agreed price.

 

F

Financial Conduct Authority
The body that regulates the financial services industry in the UK.

Fixed Price
Offers are invited at the price shown

Fixed rate mortgage
A mortgage in which the interest rate is set for an agreed period of time.

Fixed Term Tenancy
A tenancy with a specified start and end date.

Fixtures and fittings
All non-structural items included in the purchase of a property.

Flexible mortgage
An arrangement whereby you can increase or decrease your mortgage.

Flying freehold
A flying freehold exists when one part of a property extends over, or under, a neighbouring property.

Freehold
Ownership of the property and land upon which the property is situated.

Full Structural Survey
A full structural survey looks at all the main features of the property, including walls, roof, foundations, plumbing, joinery, electrical wiring, drains, and garden.

Fully Managed
A service level offered to landlords. This is our comprehensive, hassle free service requiring minimum involvement from you. Whatever is required by you or the tenant, we take care of it.

Fully repairing and Insuring Leases
A commercial agreement where the tenants are fully responsible for all repairs and maintenance to the premises

Furnished
A property that is let with all furnishings a tenant would need to live comfortably.

Furnishings
The contents of the property included as part of the rent.


G

Gazumping
When a seller accepts a higher offer from a third party on a property that they have previously agreed to sell to someone else

Gazundering
When a buyer reduces their agreed offer prior to exchange of contracts.

Ground rent
The annual charge levied by the freeholder to the leaseholder.

Guarantor
Someone who promises to pay the borrower's or the tenants debt if they don’t keep up their mortgage or rent payments..

Gas Safety Check
Landlords are required to arrange of a gas safety check to take place annually on rented properties. This must be carried out by a gas safe registered engineer.

Gas Safety Record (GSR)
A document which shows that gas appliances (including a gas meter) has had an annual gas safety check carried out by a registered engineer. Landlords are legally required to have a GSR produced annually.

Ground rent
The annual fee which a leaseholder pays to a freeholder.

Guaranteed premium
Premiums will stay the same throughout the term of a policy.

H

Higher Lending Charge
Required by some lenders if your loan is for more than a required percentage of the value of the house. Although the borrower pays the premium, the policy protects the lender not the borrower.

Home Buyers Report
The homebuyer's report comments on the structural condition of most parts of the property that are readily accessible, but does not involve in-depth investigation or the testing of water, drainage or heating systems.

Household insurance
An insurance policy that protects against loss or damage to the property caused by fire, some natural causes and acts of vandalism. Also see Buildings insurance and Contents insurance.

Houses in Multiple Occupancy (HMO)
A building of three floors or more which is to be occupied by three or more people and where these people live as more than one household and share facilities such as bathrooms, toilets or cooking facilities.

Housing Association
A non-profit making body which lets you buy a percentage of the property and pay rent on the rest.


I

IFA
Independent Financial Advisor.

ISA (Individual Savings Account)
A scheme allowing individuals to hold cash, shares, and unit trusts free of tax on dividends, interest, and capital gain

Income protection
Provides tax-free income in the event of you not being able to work due to ill health. Payments are usually paid monthly until you either return to work, the policy term expires, you retire or death occurs.

Individual Savings Account mortgage
An interest-only mortgage linked to an Individual Savings Account fund, which is designed to pay off the loan at the end of the period.

Inflation
The general rise in prices over time.

Interest charges
The charges that banks make on a loan, calculated as a percentage of the amount borrowed.

Interest-only mortgage
A type of mortgage in which the borrower only repays the interest on the loan for the duration of its term and repays the full loan amount at the end of the mortgage period.

Internal Repairing and Insuring Leases
The tenant is responsible for repairs that happen inside the property with the Landlord responsible for all external repairs

Instruction
When a seller instructs an estate agent to market a property.

Inventory
An inventory is conducted before the tenancy starts to provide an accurate list of the rental property’s contents and their condition.

J

Joint Income
The total gross income of the two borrowers in a joint mortgage.

Joint tenants
A form of ownership for two parties whereby if one of them dies, their share of the property will automatically transfer to the remaining party, giving them full ownership (regardless of the terms of the deceased owner's will).

Joint Agency
Where two estate agents work together to market a property.