Jargon Buster

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Glossaries

Term Definition
Partnership
An agreement between two or more entities to invest or go into business together.
Passive Income
Income received on a regular basis with little effort required to maintain it.

Some examples are income generated from: - rent from property - royalties from publishing intellectual property - dividends and interest income and gains from sales of securities - pensions
Per Calendar Month
Refers to the rental figure that a tenant would pay per calendar month.
Periodic Tenancy
A periodic tenancy comes into being when a landlord does nothing to reclaim possession at the end of an original assured shorthold tenancy and allows the tenants to remain without issuing a new tenancy agreement.

The terms and conditions of the original assured shorthold tenancy agreement remain in place, as does the right of the landlord to bring the tenancy to an end by service of the required two month's
Physical Deterioration
A reduction in a value of a property resulting from a decline in physical condition either caused by action of the elements or by ordinary wear and tear.
Planning Permission
Permission from the planning department of a local authority to carry out approved works on a property. Includes:

  • extending a property
  • dividing off part of a property for business or commercial use or for a separate dwelling
  • using a building or caravan in a garden as a separate dwelling.
  • creation of a parking space for a commercial vehicle


Minor changes are allowed without needing to apply for planning permission.
Portable Mortgage
A portable mortgage allows the borrower to move their mortgage from one property to another without penalty within an early repayment charge period. e.g.: if there are early repayment charges for the first 3 years on your mortgage, then if you wanted to move house after say 19 months and didn't have a portable mortgage, then you would have to pay the charges and then get a new mortgage product.
Portfolio
A collection of securities or assets of an investor.

Within property this will refer to the collection of residential and commercial property or land that a person has invested into in order to obtain a return.
Possession
When the Purchaser takes over legal control of the premises.
Preliminary Enquires
The set of questions raised by the purchasers solicitor, sent to the vendor's solicitor to ask for clarification on any points about the property and the ownership of it by the vendor.
Principal Private Residence
Term used by tax authorities for owners main home. Exempt from capital gains tax when sold
Principle Private Residence Relief
Used to mitigate CGT on second homes. 2 year window to decide which of your properties is to be your PPRR in order to maximise the relief on the biggest gain from each residence.
Private Rented Sector
Classification of UK housing tenure. Dwellings owned by Private landlords.
Probate
The official process of proving a will is valid and who inherits any assets.

If the will involves a property, a probate valuation for inheritance tax can be obtained which is normally a negotiated value with the district valuer who represents the Inland Revenue.

It is vital for a potential purchaser and the vendor to understand that the sale of a property in this situation cannot proceed to exchange until probate is granted.
Property Investment Clubs
Partnerships of investors so they can take advantage of bulk purchasing power. Membership usually required. Massive negotiating power, are often able to purchase well below Market Value and in large multiples