Jargon Buster

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Glossaries

Term Definition
Below Market Value
The purchase price agreed below the market value or the property, usually expressed as a percentage, 20%, 25% or 35% Below Market Value.

The Value could be vendor, estate agent or RICS surveyor valuation, however the true BMV will be off the RICS valuation only.
Beneficial Owner
This is the person owning land and who is therefore entitled to it for his/her own benefit. This is different from say a trust etc that may hold land for the benefit of someone else
Beneficiary
One who benefits from another, such as the act of invoking an insurance policy or deed of trust.
Benefit Overpayment
Is a deduction from existing housing benefit payments and used to recover payment from tenants. Such recoveries can impact upon rental income, creating a shortfall if such benefits are paid direct to landlord.
Block Management
This refers to the agents that manage/act on behalf of the freeholds and leaseholds, normally for a block of flats or apartments.

They will usually arrange things like:
Booking Fee
Another term meaning arrangement fee. Booking fees are normally paid upfront to book the rate.
Break Clause/Release Clause
Clause within a contract that allows the exit of that contract, normally with stipulations. These are sometimes used in conjunction with fixed term tenancies and will normally allow either party to get out (normally with about 2 months notice) before the end of the new term.

For example: in an AST after the first 6 months is over when it comes to renewal, either party (landlord or tenant), will often request that a break/release clause be entered into the agreement, if they are unsure whether they will want to continue renting the property for the duration of the next 6 months.
Bridging Loan
This is a temporary short term loan that enables you to buy a property and bridges the gap between the purchase of one property and sale of another. It should not replace a normal mortgage as the fees and interest are high.
Broker
This is a person that advises on mortgages (aka Mortgage Broker), or potentially any other financial product.
Building Insurance
Insurance that is required to cover against your property being damaged or destroyed. The sum insured covers the estimated cost of rebuilding the property. (keep in mind this can vary greatly from the market value of the property.)
Building Regulations
Legislations that relate to the standards of premises or construction. One or more could apply at any given time and set out the requirements with which the individual aspects of building design and construction must comply in the interests of the health and safety of building users, energy conservation, and access to and use of buildings
Building Society
Financial institution, owned by its members, offering banking, other financial services and Mortgage lending
Buy To Let
The purchase of a property for the sole purpose of letting for a rental income.
Buy To Let Mortgage
A special mortgage product for where it is intended to let the property out to tenants. This type of loan is may be based on projected rental income, rather than on multiples of the borrower's income or salary.
Buy To Sell
Property investment strategy. Purchase of a property with the aim to sell for profit, normally in a short space of time. This usually involves some level of refurbishment.