Property Loan Related Glossary

These acronyms and terms may prove useful in understanding any property based loan contracts you may be considering.

Amortisation

To pay off the principle of a loan and interest over time.

Debt Service Coverage Ratio

This is the ratio of cash from business or rental income available for servicing the outstanding debt.

Equity

The difference between the value of a property and any loans secured against it.

Freehold

The ownership of property and the land on which it resides.

Leasehold

The right to occupy or possess a piece of land or property for a given length of time set out in the terms of the lease.

Open Market Value

The price a property may achieve between a willing buyer and vendor.

Stamp Duty

Government tax levied against the property purchase price.

Survey

See Valuation.

Tenure

The type of property ownership for example Freehold or Leasehold.

Title

The legal right to ownership of a property.

Title Deeds

A document showing who owns a property.

Valuation

An independent report on the value of a property.

ARLA

Association of Residential Letting Agents.

AST

Assured Short hold Tenancy agreement.

AT

Assured Tenancy.

BMV

Below Market Valuation.

BTL

Buy To Let.

BTS

Buy To Sell.

CPO

Compulsory Purchase Order.

DPP

Detailed Planning Permission.

ERC

Early Redemption Charge.

ERP

Early Redemption Penalty.

FPP

Full Planning Permission.

FSA

Financial Services Authority.

FSS

Full Structural Survey.

FTB

First Time Buyer.

CGT

Capital Gains Tax.

GDV

Gross Development Value.

HMO

House of Multiple Occupancy.

JV

Joint Venture.

LTB

Let To Buy.

LTV

Loan to Value.

NHBC

National House Building Council.

NPV

Net Present Value.

OMV

Open Market Value.

OPP

Outline Planning Permission.

PP

Planning Permission.

RICS

Royal Institute of Chartered Surveyors.