Welcome to the Shared Ownership and buying jargon buster
Buying a home - especially your first one - is an exciting milestone, but it can also feel a little overwhelming. Between navigating the process and understanding the technical terms thrown your way, it’s easy to feel lost in a sea of unfamiliar jargon.
That’s why we’ve created this jargon buster - a handy guide to help you make sense of the most common terms used by solicitors, sales advisors, and mortgage specialists. Whether you’re exploring Shared Ownership for the first time or simply brushing up on your knowledge, this page is here to make the journey to homeownership as smooth and stress-free as possible.
Let’s break down the jargon together and give you the confidence to take the next step toward owning your home.
Professionals who provide independent advice on financial matters, particularly helping you secure a mortgage. They assess your financial situation and recommend suitable mortgage products from across the whole market, ensuring you find the best option for your needs.
This refers to the point at which a new build property is officially signed off as ‘build-complete’ and ready for you to move in. At this stage, the property has been inspected and approved, ensuring it meets the required standards for occupancy.
An earlybird reservation allows you to pre-reserve a right of first refusal on a property before it is priced and officially released for sale. Unlike buying ‘off-plan,’ you are not reserving or purchasing a specific home at this stage. It’s important to note that property prices may increase, as the developer will have the property valued closer to the time of practical completion.
This term refers to the process of buying or reserving a new home before it has been built. The decision is made based on materials such as brochures, construction plans, specifications, or scale models, rather than viewing the completed property or a show home.
The upfront sum of money required by the lender to secure your mortgage. This is typically between 5% and 20% of the purchase price of the property and is paid when you exchange contracts.
A non-refundable fee, usually around £500, taken by the developer to secure the property in your name and remove it from the market. This fee is typically deducted from the final amount you pay upon completing the sale. However, it’s important to note that you may lose this fee if your sale does not go through.
The legal process of transferring ownership of a property from one person to another, typically through documents such as a deed, lease, or mortgage. This process is carried out by your solicitor on your behalf to ensure all legal requirements are met, enabling you to legally purchase the property.
The organisation that provides you with the mortgage loan needed to purchase your home. This loan, combined with your deposit payment, is repaid over a set number of years with interest applied.
A government-backed affordable home ownership scheme where the buyer purchases a proportion of the property (typically between 10% and 75%) and pays rent on the remaining share to the housing provider, such as Cerris Homes. This flexible approach makes homeownership more accessible for those who may not be able to afford a property outright.
A homeownership scheme different from Shared Ownership, which allows customers to rent a home at a reduced rate for a set period of time. This provides an opportunity to save up for a deposit to purchase the property in the future.
The sale of a property on the open market without the involvement of any government-backed affordable housing schemes. Buyers purchase the property at its full market value with no additional restrictions.
A fee typically payable on a new build property, covering the cost of maintaining and upkeeping the estate as a whole. The amount varies depending on the specific logistics and requirements of the site.
A fee paid by a leaseholder to the owner of the building or the land on which the property is built. This is a regular payment as part of the lease agreement.
A type of property ownership where the property is held under the terms of a lease agreement. Ownership of the leasehold property reverts back to the freeholder (the landowner) once the lease expires.
A type of property ownership where you own both the land and any property built on it outright, with no time limit or lease agreements attached.
A fee payable to the Cerris Homes, covering the administration of rent paid by shared owners, as well as the ground rent and estate charge, if applicable.
Issues with the property that do not meet the agreed specification, such as poor workmanship - for example, an electrician’s error resulting in a non-functional plug.
The period, typically one year from build completion, during which the builder is responsible for addressing and rectifying any defects in the property.
An industry body representing mortgage lenders in the UK, including banks, building societies, and specialist lenders. Its members account for 95% of mortgage lending in the UK.
The UK’s largest provider of new home warranties, established in 1936. It aims to raise construction standards and provides a 10-year Buildmark warranty for consumer protection.
The stage in the property purchase process where identical contracts are signed by both buyer and seller, and formally exchanged by solicitors. At this point, the agreement becomes legally binding, and withdrawing would incur significant penalties.
The final stage of a property sale or purchase, where funds are transferred to the seller and the transaction is complete. This is also when the buyer receives the keys to their new home.
A term describing organisations that reinvest their profits to support social purposes. Cerris Homes is proud to operate as a profit-for-purpose organisation.
The process of purchasing additional shares in your Shared Ownership home, increasing the proportion you own. This reduces rent charges and builds your equity in the property.