Jargon Buster
Sublet
If a tenant renting a property lets part of the property out to someone else, this is known as subletting.
Subsidence
Damage caused to a property due to its foundations sinking is known as subsidence.
Summary Statement
A summary statement is the annual statement of account sent to a landlord by a letting agent.
Tax Exemption
The Inland Revenue office issues a number to letting agents approving rent money passing to a landlord without a tax deduction.
TDS (Tenancy Deposit Scheme)
Tenancy deposit protection schemes were brought in from April 6 2007 and all landlords or letting agents taking deposits from tenants as part of an Assured Shorthold Tenancy (AST) must safeguard them in a scheme.
Tenure
Tenure refers to type of ownership and falls under two categories – freehold and leasehold.
Freehold ownership is the outright ownership of both the property and the land it’s built on.
Leasehold ownership is ownership of the property, but not the land it’s built on, which belongs to a freeholder.
Leasehold properties are purchased on a long lease, meaning the owner retains ownership of the property for a certain period outlined in the lease and subject to ground rent and/or maintenance charges.
Most flats and apartments are leasehold, whereas most houses are freehold.
Term
The length of a fixed term tenancy as outlined in a tenancy agreement.
Term of Contract
Term of Contract refers to the rights and responsibilities expressed in a contract.
Termination
This refers to the ending of a tenancy agreement.
To clear monies
This refers to money that must pass through the banking system and be cleared for withdrawal.
Undertaking
There are two forms of undertaking when it comes to property purchases.
Firstly, the buyer may undertake to carry out certain repairs to a property as a condition of receiving a mortgage.
Secondly, the buyer will undertake not to move into the property they’re buying until legal completion, including carrying out any alterations.
Utilities
Utilities refer to services provided by companies for gas, water, and electricity.
