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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, such as snagging and rental management.
A property investment strategy where a property is purchased specifically to be rented out.
Estimating 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 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.
The date on which the ownership of a property is legally transferred from the seller to the buyer.
The net income generated from a property investment after accounting for all expenses (e.g., mortgage payments, maintenance).
The formal process where signed contracts are exchanged between the buyer and seller, making the agreement legally binding.
A certificate rating a property’s energy efficiency from A (most efficient) to G (least efficient) while providing recommendations.
Full ownership of a property and the land it is on, with no time limit.
The annual rental income expressed as a percentage of the property’s purchase price.
Small annual payment from leaseholder to freeholder as part of a lease agreement.
Statistical measure tracking average residential property price changes over time, indicating property market trends.
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.
Detailed list of items and their condition in a rental property, used to prevent end-of-tenancy disputes.
The number of years remaining on a leasehold property, typically starting from the date the lease was originally granted.
Ownership of property for a set period (e.g., 99 years), but not the land, which 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.
Easily convertible assets to cash without losing value, used to meet property expenses like deposits.
Final deadline in a contract by which specific actions must be completed, beyond which penalties may apply.
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.
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.
A property purchased before construction is completed, typically at a discounted price, based on the developer's plans and designs.
Nominal rent (often £1 or less) used symbolically in lease agreements when substantial rent isn't required.
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.
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 duration.
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
