A quick index guide to terms generally used within the realm of residential lettings:

ABCD E F G H I J K LM N O P Q RSTUV W X Y Z
Click on each to produce each description under the letter

Administration Fee

Generally a one-off payment to the Agent prior to taking-up a tenancy to cover administration charge such as references and Tenancy Agreement. This is deducted from the initial monies required before keys are released.

Buy to let mortgage

A type of mortgage specifically designed for investors buying a property with the intention of letting it out. Typically a 15% minimum deposit is required, as is proof of rental comparisons in the local area.

Check In/ Check Out

This is the meeting at the beginning of the tenancy to check-off both the inventory/schedule of the property. This is either carried out by an independent inventory clerk or more typically the landlord.

Credit Referencing Agency

A Credit Referencing Agency is use by a letting agent to verify the credentials of the tenant(s) to determine their suitability as clients.

Dilapidations Deposit

This is the money initially provided by the tenant(s) against any disrepair or damage to a rented property during the tenancy. The government is soon to introduce a Tenants Deposit Scheme to hold as Stakeholder for the duration of the tenancy.

Gas Safety Cerificate

This is a legal requirement to be carried out on an annual basis by a CORGI gas engineer. All parties should have a copy of this certificate prior to occupation of the property and beginning of the tenancy.

Guarantor

This is where a landlord accepts a tenant where a third party usually a homeowner promises to pay the tenants debt if they default. This is common means of University students securing accommodation.

Interest-only mortgage

An interest-only mortgage stays the same throughout the mortgage term. Interest and a premium to an investment vehicle are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. The amount will depend on the performance of the investment vehicle. If you choose an interest-only mortgage you are responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term.

Inventory

A list which describes the condition of furnishings and contents of a property at the start and end of a tenancy in order that any dilapidation during the tenancy can be identified. The is often carried out by a specialist clerk. This is both the tenants and the landlord's record of the condition of the property at the beginning of the tenancy.

Joint and Several Tenancies

This applies to Tenancy Agreements involving more than one tenant or Landlord. They are bond individually and together by the terms of the Tenancy Agreement.

Landlord

The owner of a property which is ‘let out'. Where there is more than one owner each will be a ‘landlord' and jointly liable.

Maisonette

A property arranged over more than one floor which has its own front door (not a communal area).

Mortgage

A sum of money advanced by a lender (such as a bank or building society) on the security of a property and repayable over a long period.

Mortgage rate

The standard variable interest rate quoted by all mortgage lenders which normally varies with the Bank of England base rate. All discounted rates are based on this mortgage rate.

Mortgage term

The period of time over which the loan is to be repaid. This varies although in the main it ranges between 20 – 30 years.

Move-in monies

This is the amount of cleared funds required at the beginning of a tenancy. Usually comprising of one month's rent in advance, the equivalent of 5 weeks as a dilapidation deposit and an administration fee.

Ombudsman

Independent professional bodies who investigate complaints on behalf of customers against, for example, estate agents, solicitors and insurance companies.

Re-mortgage

Refinancing a property by either switching a mortgage from one lender to another or by taking out a second mortgage to draw upon any equity gained by a rise in value.

Repayment mortgage

Monthly payments which cover both interest and capital (as opposed to an interest-only mortgage) so that the amount outstanding gradually decreases until the mortgage is fully repaid. Typically over 25 years.

Repossession

Occurs when the mortgage lender takes possession of a property due to non-payment of the mortgage/arrears.

Schedule of Condition

Produced at the beginning and end of a tenancy in tandem with the inventory.

Stakeholder

Where the Agent is the managing agent, they will hold the tenants dilapidation deposit in an non interest accruing account until the end of the tenancy where an deductions must be authorised by both parties in writing.

Studio flat

A flat consisting of one main room or open-plan living area incorporating cooking and sleeping facilities and a separate bathroom/shower room. This can vary slightly with a ‘super studio' where by the kitchen can be separate and the sleeping area can be partitioned from the main space.

Tenancy

Temporary possession of a property by a tenant. This usually ranges from between 6 – 12 months.

Tenancy agreement

A legal agreement designed to protect the rights of the tenant and landlord setting out all the terms and conditions of the rental arrangements. The most commonly used type is an ‘Assured Shorthold Tenancy' set for a fixed period with a fixed date when the property will be vacated.

Tenant

The person(s) who has temporary possession of a property in accordance with the Tenancy Agreement.

Under offer

The status of a property, when a Landlord has accepted an offer from a tenant(s) prior to the move-in.

Valuation

This is a market accurate price per month recommended by the Agent as to inially market the property.

Yield

The income from a property calculated as a percentage of its value, used by investors to determine the profitability of the asset.