Buy To Let Investors

GLOSSARY

New to property investment but want to make sure you sound like a pro? Here are a few key terms that will be useful for you to know...

If you're looking for a property-related term that isn't on our list, please email it to us for our consideration.

APR	Annual Percentage Rate - the true cost of a loan
AUCTIONS	Property sale. If you win the bid, you're legally bound to buy the house
BRIDGING LOAN	A temporary but expensive loan to tide you over when having to buy your new house before selling your old home
BROKER	An intermediary who gives advice and offers a range of mortgages
BUY TO LET	The purchase of a residential property with the intention of letting it out
CAPITAL	The sum borrowed in a mortgage
CAPITAL GROWTH	The increase in value of a property in the market as a whole
CASHFLOW POSITIVE	When your overall income is greater than your costs
CASHFLOW NEGATIVE	When your overall income is less than your costs
CHAIN	This occurs when the seller needs the sale of their house to take place before they can complete the purchase of another property. The same situation may exist for others in the chain. As a result, the whole chain can collapse if one link breaks
COMPARABLE	A process to measure the true value of a property
COMPLETION	The point when ownership legally passes to the buyer
CONTRACTS	The legal documents needed to transfer ownership of a property
CONVEYANCING	Legal work involved in buying and selling a house
DEVELOPER	A company that builds new properties
EQUITY	The value of a property after deducting payment and other costs
ESCROW	Money held in account by an independent third party to be released when pre-agreed obligations are fulfilled
EXCHANGE OF CONTRACTS	The point at which buyer and seller are legally bound to the sale and purchase of the property
FLIPPING	Selling an off-plan property on or before it is completed
FREEHOLD	Absolute ownership of property and land
GAZUMPING	A common practise where the seller accepts a higher offer once they have already accepted an offer from someone else
GAZUNDERING	When the buyer blackmails the seller into accepting a lower offer just before contracts are exchanged
GDP	Gross Domestic Product - the market value of all goods and services produced within a country in a given period of time
GIFTED DEPOSIT	Where the developer contributes towards the deposit on a property
LEASE	Document where the owner of a freehold property lets it out to a named party at a certain price and for a specified time
LIBOR	London Inter Bank Offered Rate - the rate at which banks lend money to each other
NEGATIVE EQUITY	When the value of your house falls lower than your mortgage
OFF-PLAN	When contracts are exchanged on a property before the building work has been completed
PUBLIC LIABILITY INSURANCE	Insurance which covers injury or death to anyone on or around your property
RENTAL SHORTFALL	When the monthly rental income is lower than the monthly mortgage payment - this usually happens when the buyer puts down a large deposit, say over 30%
RENTAL VOID	The period when a property is vacant
RENTAL YIELD	The amount of money a landlord receives in rent over the course of one year, expressed as a percentage of the amount of money invested in the property
RICS	Royal Institute of Chartered Surveyors - the official body that authorises surveyors to make valuations on behalf of mortgage lenders
SITE	A new housing development
STAMP DUTY	A government tax on houses valued above £120,000 set at 1% of the property's value, 2.5% for properties valued between £250,000 - £500,000 and 3.5% over £500,000
STRUCTUAL SURVEY	A report constructed by the surveyor detailing whether the house is structurally sound and listing any defects and necessary work which needs to take place
TITLE DEEDS	The document showing the ownership of a property
UNIT	A single new-build property - can be an apartment or a house
VALUATION SURVEY	Carried out by the lender to ensure that the house's value is not less than the proposed loan. Often the lender will arrange the survey and bill the buyer
ZONING	Areas designated for certain purposes, e.g. residential, agricultural, commercial

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Testimonials

Rahman M

"Since my intitial contact with BTLI I've never looked back and now buying my second Caribbean property. I've had calls and emails from many other companies, but have never entertained them. BTLI are always willing and helpful, their service is fantastic and my confidence building in time. Not only this, BTLI offer excellent property deals and I wish I could purchase them all! I will no doubt continue my relationship with BTLI on a long term basis and would recommend them to anyone."

Chris N

"Great report. Looking forward to tapping into your closed bridge financing services. Roll on 2008."
Chris N. Wakefield

Richard B

"I wish I’d had access to the Below Market Value Profits report twelve months ago when I first started investing, if I did, I’d own three times as many properties as I do now!"
Richard B, Hayling Island.

Stephen F

"A most professional company providing excellent service with all the help and assistance you need. Having now purchased several units through Buy To Let Investors including units in the Caribbean I am more than happy to recommend their services to others."
Stephen F. Southampton

Martyn H

"It has become increasingly difficult over the past couple of years to source the right deals, Buy To Let Investors fill that gap by coming up with great deals time and time again. As well as investments in the UK I have now followed them abroad in some of the best deals I have come across anywhere. The last three properties I have purchased have all come from the team."
Martyn H. Leicester

James S

"Having already purchased through Buy To let Investors and personally experiencing their bridging system first hand has given me the confidence to go out and source my own BMV deals. I have already negotiated two deals which are now proceeding to completion and I hope to purchase many more over the coming months."

Member Articles

Stay On Top of your Property Investments

No matter how large your portfolio is, there are certain costs that always need to be paid, apart from the mortgage. If you buy a leasehold property you’ll find there are usually two other payments to make, the Ground Rent and a Service Charge.
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Crackdown on Overseas Property Investors

There’s nowhere left to hide. HM Revenue & Customs (HMRC) have been secretly investigating UK property investors for some time now and are ready to pounce on the thousands of offshore account holders who haven’t fully declared their income from foreign property.
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End Of The Road for 125% Mortgage

It’s time to wave goodbye to the so-called 125% mortgage, with the last remaining lender now dropping it from their services. Birmingham Midshires was the final company to pull the controversial deal following its withdrawal by five other lenders, citing ‘market factors’ as the reason behind their decision.
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Buy To Let Market still Flourishing

The Buy To Let market is continuing to thrive despite the Credit Crunch, according the Council of Mortgage Lenders (CML). 1,038,000 Buy To Let loans were granted in 2007, relating to 10.3% of all outstanding mortgages and an increase of 23% on 2006.
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UK Landlords Not Succumbing to Market Pressure

A recent independent survey of around 500 UK landlords commissioned by the Money Centre has revealed that over half expect to stay involved in property letting for more than ten years, despite the recent market instability.
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What is a Buy To Let Mortgage?

Buy to Let mortgages are a reasonably new phenomenon used to purchase investment property, which is used as collateral on the loan. Before this system was introduced property investors had to take out a bank loan at a commercial rate, often at a significantly higher rate than standard mortgages.
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