Renting in London | Real Estate Terms You Should Know
If you're moving to London or anywhere in the UK, there are some real estate terms that you should familiarize yourself with. The UK has a unique housing market, and understanding the terminology will help you find the perfect place to live.
20 Real Estate Terms for Renters
1. Tenancy Agreement / Lease: This is a contract between the landlord and tenant that outlines the terms of the tenancy, such as the length of the tenancy, the rent amount, and the rights and responsibilities of both parties.
2. Assured Shorthold Tenancy: This is the most common type of tenancy agreement in the UK. It gives the tenant the right to live in the property for a set period of time, typically 6 or 12 months.
3. Periodic/Rolling tenancy: A periodic tenancy (also known as a rolling tenancy) is an agreement that does not have a fixed end date. The tenancy will continue until either the tenant or landlord gives notice to end it.
4. Break Clause: This is a clause in a tenancy agreement that allows either the landlord or tenant to terminate the tenancy early, typically after 6 or 12 months.
5. Deposit: This is money that is paid by the tenant to the landlord at the beginning of the tenancy as security against damage or rent arrears. The deposit is usually equivalent to one month's rent.
6. Rent in Advance: This is money that is paid by the tenant to the landlord at the beginning of the tenancy to cover the first month's rent.
7. Rent Arrears: This is when the tenant falls behind on their rent payments. The landlord can take legal action to evict the tenant if they accumulate more than two months' worth of rent arrears.
8. Guarantor: A guarantor is someone who agrees to be responsible for the rent if the tenant is unable to pay. A guarantor can be a family member, friend, or employer.
9. Tenant Referencing Checks: Tenant referencing checks are carried out by landlords to assess whether a potential tenant is suitable for their property. These checks can include credit checks, employment history, and previous landlord references.
10. Fixed term: A fixed term tenancy is when the tenant agrees to rent the property for a set period of time, usually 6 or 12 months. At the end of the fixed term, the tenant can choose to renew the tenancy or move out.
11. Renewal: Renewal refers to the process of renewing a tenancy agreement. This can be done either by negotiating a new agreement with the landlord or by signing a new contract.
12. Fully / Partly Furnished: Fully furnished means that the property comes with all the necessary furniture and appliances, such as beds, tables, chairs, and cookware. Partly furnished means that some items are provided but not all.
13. Section 21 Notice: This is a notice that is served by the landlord to the tenant when they wish to end an assured shorthold tenancy. The notice must be served at least 2 months before the landlord wishes to regain possession of the property.
14. Section 8 Notice: This is a notice that is served by the landlord to the tenant when they have breached the terms of their tenancy agreement, such as failing to pay rent or causing damage to the property. The notice must be served 14 days before the landlord wishes to regain possession of the property.
15. Check-In: This is when the tenant moves into the property and signs the tenancy agreement. The landlord or their representative will inspect the property and take inventory of any furniture or appliances that are included in the rental price.
16. Check-Out: This is when the tenant leaves the property and returns the keys to the landlord. The landlord or their representative will inspect the property and compare it to the inventory from check-in. Any damages that have occurred during the tenancy will be deducted from the deposit.
17. Inventory: This is a list of all the furniture and appliances that are included in the rental price of a property.
18. Letting Agent: This is a professional who is hired by the landlord to manage their property. The letting agent will find tenants, collect rent, and deal with any maintenance issues that arise during the tenancy.
19. Fully Managed: Fully managed means that a management company will take care of all the day-to-day tasks associated with managing the property, such as dealing with repairs and maintenance issues.
20. Build to Rent: This is a type of property that is built specifically for renting. Build-to-rent properties are usually managed by professional letting agents and have a range of amenities for tenants, such as gyms and concierge services.
FAQ
What does Let Agreed mean?
"Let agreed" means that the landlord and tenant have agreed on the terms of the tenancy agreement. This includes things like the rental price, the length of the tenancy, and any other conditions that have been agreed upon. Once both parties have signed the tenancy agreement, the property is considered "let".
15 Real Estate Terms for Buyers and Investors
1. Freehold: This is the ownership of a property and the land it is built on. The owner has the right to live there indefinitely and can pass the property down to future generations.
2. Leasehold: This type of ownership gives the tenant the right to occupy a property for a set period of time, typically 99 years. At the end of the lease, the property returns to the landlord.
3. Council Tax: This is a tax that is levied on all homes in the UK by the local government. The amount of tax you pay is based on the value of your home and your personal circumstances.
4. Stamp Duty: This is a tax that is paid on all property transactions in the UK. The amount you pay depends on the value of the property and your personal circumstances.
5. Right to Buy: This is a government scheme that allows certain tenants of social housing to purchase their homes at a discounted price.
6. Help to Buy: This is a government scheme that provides financial assistance to first-time buyers who are struggling to raise a deposit.
7. Home Insurance: This is insurance that covers your home and belongings in case of damage or theft. It is not mandatory, but it is recommended.
8. Mortgage: This is a loan that is taken out to purchase a property. The property acts as collateral for the loan, and the borrower must make monthly payments until the loan is paid off.
9. Repossession: This occurs when the borrower fails to make their mortgage payments, and the lender takes back ownership of the property.
10. EPC: This stands for Energy Performance Certificate. It is a report that assesses the energy efficiency of a property and gives it a rating from A (very efficient) to G (inefficient).
11. Floor area: This is the total area of all the rooms in a property, measured in square metres.
12. Annual Percentage Rate (APR): The cost of borrowing money from a lender, expressed as a yearly interest rate.
13. Block Management: Block management is the process of managing a block of flats or apartments. This can include things like maintaining the common areas, collecting rent, and dealing with any repairs or maintenance issues.
14. Buy to Let Mortgage: A buy to let mortgage is a mortgage that is taken out on a property that will be rented out. This type of mortgage usually has stricter criteria than a standard mortgage, and the interest rates are often higher.
15. Commercial Property: Commercial property is any type of property that is used for business purposes. This can include office buildings, retail space, warehouses, and more.
If you’re looking to move to the UK, let us help you find the perfect home. At Redwood Living, we’re always available to offer helpful advice and assistance.
Redwood also offer PRS and Build to Rent developers the opportunity to work with a forward thinking Operator who uses flexible tenancies to optimise revenue.
We undertake full management of PRS/BTR blocks, implementing our branding and ethos to provide a full solution to developers country wide. Block management, tenant sourcing, community engagement, events management are just a few of the many benefits of using Redwood as your PRS/BTR operator.
If you’re interested in your development becoming part of our community then contact us to find our more about our service and management fees.
