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Standard residential tenancy agreements in the UK, typically for 6-12 months.
Support and assistance provided to property buyers after the sale is completed. This could include help with snagging, rental management, or resolving issues with the property.
A property investment strategy where a property is purchased specifically to be rented out.
The acquisition of property through a limited company rather than an individual. This structure is often used for tax efficiency, particularly in buy-to-let investments.
A local tax paid by property occupants or owners in England, Scotland, and Wales to fund local services such as rubbish collection, policing, and schools. The rate is based on the property’s valuation band.
A tax levied on the profit made from selling a property or asset that has increased in value. In the UK, it applies to gains above a certain threshold, with exemptions for main residences.
A method used to determine a property's value based on its income-generating potential, often by dividing the net operating income by the capitalisation rate (yield).
A ratio used to estimate the return on investment of a property, calculated as the net operating income divided by the current market value.
The increase in the value of a property over time, reflecting the rise in market prices.
A form of property ownership where residents own their individual flats or units while collectively owning and managing the common areas.
A legal order allowing a public authority to acquire privately-owned land or property without the owner’s consent, usually for infrastructure projects or regeneration schemes.
The date on which the ownership of a property is legally transferred from the seller to the buyer, and the buyer takes possession of the property.
The net income generated from a property investment after accounting for all expenses (e.g., mortgage payments, maintenance).
An approach to property investment or management that relies on analysing data such as market trends, rental yields, and occupancy rates to make informed decisions.
The financial value an owner holds in a property, calculated as the property’s market value minus any outstanding mortgage or debts secured against it. Equity can increase through mortgage repayment or property appreciation.
The formal process where signed contracts are exchanged between the buyer and seller, making the agreement legally binding and committing both parties to the property transaction.
A certificate that rates a property’s energy efficiency from A (most efficient) to G (least efficient) and provides recommendations for improving it. An EPC is legally required when selling or renting out a property in the UK.
A property investment where a third-party company handles all aspects of management, including tenant sourcing, rent collection, maintenance, and compliance, allowing investors to enjoy passive income.
A complete set of furniture and furnishings provided for a property, often used in rental properties or serviced apartments to make them ready for tenants.
A mortgage where the interest rate is set for a specified period, offering protection against rate increases during that time.
Full ownership of a property and the land it is on, with no time limit.
The total estimated value of a property development once it is completed and fully sold or let, used to assess the profitability of a project.
The annual rental income as a percentage of the property’s purchase price. Formula: (Annual Rent/ Purchase Price) x 100.
A regular payment made by a leaseholder to the freeholder as part of the lease agreement. It is typically a small annual amount.
A sum paid by a prospective tenant to secure a rental property while the final tenancy agreement is being processed. In the UK, this is capped at one week’s rent and is refundable under certain conditions.
A statistical measure that tracks the changes in the average price of residential properties over time, often used as an indicator of property market trends.
Buying a property in a personal name rather than through a company or other entity. The property deeds and mortgage are in the individual's name.
The cost of borrowing money, expressed as a percentage, applied to the mortgage balance. It influences the monthly repayment amount and total cost of a mortgage.
A formal examination of a property, which can be conducted for various reasons such as assessing its condition, valuing it, or ensuring compliance with rental standards.
A property purchased with the intention of earning a return on the value of the investment. Earnings can come from rental income, capital growth or a combination of the two.
A detailed list of the items and their condition within a rental property at the start of a tenancy, used to avoid disputes at the end of the tenancy.
Using borrowed funds, such as a mortgage, to increase potential returns on property investment. Higher leverage increases both potential gains and risks.
The number of years remaining on a leasehold property, typically starting from the date the lease was originally granted.
A type of property ownership where you own the right to occupy a property for a set period (e.g., 99 or 125 years) but not the land it sits on. The land is owned by a freeholder.
The ratio of a loan to the value of the property, expressed as a percentage. Formula: (Loan Amount/ Property Amount) x 100.
Assets that can be quickly and easily converted into cash without losing value, such as savings, stocks, and bonds. In property, having liquid assets helps investors meet expenses like deposits and fees.
A final deadline in a contract by which a specific action (e.g., completion of construction) must be achieved. If the deadline is missed, penalties may apply, or the contract may be voided.
A loan used to purchase real estate, secured by the property itself, which the borrower repays over time with interest.
The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller.
A property owner who rents out property in the UK but resides outside the country. They may be subject to specific tax rules, such as having tax deducted from their rental income.
The total revenue from a property minus all reasonable operating expenses, excluding mortgage payments and taxes.
The annual rental income after deducting all expenses (e.g., service charge, ground rent, maintenance), expressed as a percentage of the purchase price. Formula: [(Annual Rent - Expenses)/ Purchase Price] x 100.
The profit remaining after all expenses, taxes, and costs have been deducted from the total revenue. In property, it’s the income left after subtracting all associated costs like mortgage payments, maintenance, and management fees.
The percentage of time a rental property is occupied by tenants, indicating its profitability and demand. A high occupancy rate suggests strong tenant interest.
A property purchased before construction is completed, typically at a discounted price, based on the developer's plans and designs.
A collection of properties owned by an individual or company, often as part of an investment strategy. A portfolio may include a mix of residential, commercial, or other types of real estate.
The administration and supervision of a property on behalf of its owner, covering tasks such as finding tenants, collecting rent, handling maintenance, and ensuring compliance with legal requirements.
The original loan amount borrowed in a mortgage, excluding interest. Mortgage repayments typically involve paying off both the principal and the interest.
An evaluation of a property's value, typically conducted by an estate agent or surveyor, based on factors such as location, condition, market trends, and comparable properties in the area.
Private rentals refer to properties that are rented out by individual landlords or private companies, rather than through local councils or housing associations. Tenants typically rent these homes on a contractual basis, usually for a fixed term of 6-12 months.
Practical completion is generally defined as the stage when a building is finished, except for minor defects, and the client is able to take possession or occupy the property. It is not just about finishing construction but also involves ensuring all necessary documentation, approvals, certificates, and warranties are in place for the building's use or occupation.
Nominal rent (often £1 or less) used symbolically in lease agreements when substantial rent isn't required.
The level of interest from tenants for rental properties in a particular area, influenced by factors such as local amenities, employment opportunities, and transport links.
The process of switching a property’s mortgage to a new lender or product, typically to secure a better interest rate or release equity from the property.
A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the initial investment cost.
A large-scale initiative aimed at revitalizing and improving urban areas, typically involving the redevelopment of infrastructure, buildings, and public spaces to enhance economic activity, housing, and quality of life.
The annual percentage of profit that an investor makes, divided by the overall value of the property. It is essentially the profit an investor can make from the property. Formula: Annual profits / property price x 100. Investors should seek properties with a rental yield of 5-8%, which experts consider good and stable.
Selling a property that has previously been purchased, by an owner-occupier or as an investment.
A tenancy agreement that continues on a month-to-month basis after the fixed-term period ends, until either party gives notice to terminate.
A property strategy where an investor rents a property from a landlord and then sublets it to tenants at a higher rent, usually after making improvements or re-purposing it for short-term lets.
A sum of money paid by a tenant to a landlord or letting agent at the start of a tenancy. It serves as protection against damages, unpaid rent, or breaches of the tenancy agreement. In the UK, deposits must typically be protected in a government-approved scheme.
The yield from properties rented as serviced lets, often generating higher rental income but also higher operating costs. Formula: [(Annual Serviced Rent - Operating Costs)/ Purchase Price] x 100.
Fully furnished properties offered with amenities and services, usually rented out for short to medium durations.
The process of identifying and rectifying defects or incomplete work in a new property before the buyer takes possession.
A fee paid by leaseholders or commonhold owners to cover the cost of maintaining communal areas and services in a building or estate, such as cleaning, repairs, and insurance.
A tax paid when purchasing property or land in England and Northern Ireland. The amount depends on the property’s value and whether the buyer is a first-time buyer, homeowner, or investor.
A turnkey investment is an all-in-one opportunity that requires minimal effort from you. It typically involves a fully furnished property that either has tenants in place or is ready to be tenanted. At North Property Group, we take care of everything - from finding the right property to furnishing and tenanting it - so you can enjoy hassle-free profits.
A person or entity, usually based in the UK, who agrees to cover the rent or other financial obligations of a tenant if they fail to meet them. Often required for tenants without a strong financial history.
North Property Group is a member of The Property Ombudsman
