Instant Access Properties

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z    All  0-9

Capital Gains Tax (CGT)

A tax levied on the increase in value of an asset when it is sold or given away. Under normal circumstances CGT only applies when you no longer own the asset. For example, if you bought a flat as a buy-to-let property three years ago for £150,000 and sold it for £175,000, CGT would have to be paid on the capital gain, i.e. £25,000.

Capital growth

An increase in the market value of an asset. Also called capital appreciation.

Capitalisation rate

A ratio that estimates the value of properties which produce income. It is the net operating income divided by the sales price (or value) of a property and is shown as a percentage.

Caveat emptor

Trans.'Buyer beware'. It is up to the buyer to find out that what they are buying is really what they want.

Certified personal accountant

When buying property in Florida, a 'non-resident alien' will need a certified personal accountant to get a withholding certificate to enable them to claim back the ten per cent of a property's value held by the agent for the IRS.

Commonhold

A recent alternative to the traditional two ways of buying property, namely leasehold and freehold. Under a commonhold system, each resident in a property effectively owns their own flat freehold as well as a share in the common structure. There are no landlords and every unit holder has equal rights.

Completion

The final stage in legally transferring the ownership of a property when the buyer pays the purchase price and the vendor hands over the property.

Conclusion of missives

A term used predominantly in Scotland for the process of exchanging contracts.

Costs (re. cash-on-cash returns)

Calculated by adding the stamp duty, the mortgage broking fee, legal fees and any introduction fees.

Council of Mortgage Lenders (CML)

The trade association for the mortgage lending industry. Its aim is to 'help foster a favourable operating environment in the UK housing and mortgage markets' (www.cml.org.uk). Around 98 per cent of UK mortgage lenders are members of the CML.

Covenant

A condition within the title deeds (if the property is freehold) or lease (if the property is leasehold) that the buyer must comply with: maintaining the exterior of the building by repainting it every ten years, for example. A restrictive covenant is one that prohibits the owner from doing something.