Property professionals have shared the 12 most relevant real estate searches and made them easy to understand.
The real estate market in the UK is gathering momentum. The heated demand is particularly vivid in the capital, with lots of new promising developments in London set for completion in 2021. Many potential homeowners can find it challenging to understand the property language used by real estate specialists such as agents or developers. Experts reveal and explain the most relevant property searches according to Google Trends to support prospective homeowners.
Gazumping is a nightmare for potential property buyers. It describes a process when a seller puts the asking price up after verbally accepting an offer from someone. Additionally, gazumping refers to sellers accepting better offers after already accepting the other ones. It is little surprise that it has become the top searched term in the UK with a dramatic 16x increase in searches.
It is very trendy to rent out property nowadays, especially given the generation-rent phenomenon, which makes it a smart solution as well. BTL means properties acquired for renting out, not for living in them. There are also related terms as Buy-to-let mortgage, which has increased in search terms by more than 16x over the 12 months.
Power of attorney
Sometimes you may need to make legal or financial decisions on behalf of another person. This is where you must have the power of an attorney. To give an example, a family taking control of the estate of their elderly relative who has moved into a care home. This term has increased in searches by 5,5x.
Another difficult term for homebuyers is leasehold, which has increased 3,5 times in searches. In a nutshell, leasehold properties are ones located on land owned by someone else (freeholders). A lease determines the period of time during which a leaseholder owns the property but does not have any claims to the land.
Capital gains tax
It is crucial for both real estate buyers and sellers to know that taxes can be applied to profits from selling properties that are not for a primary residence. This is called capital gains tax, and it is calculated based on various factors such as property price and earnings. There has been a 3x increase in searches for this term.
On the contrary, freehold properties are ones that you own entirely, including the property itself and the land it is located on. Freehold properties are eligible for any changes in accordance with the planning permissions. The term freehold increased by 180% in searches.
When a person dies, their real estate goes to the beneficiaries in accordance with their will; probate means the legal process accompanying this. In case you need to deal with this process, be aware that all the related taxes and debts have to be paid in advance. Over the year, this search term has increased by 100%.
This term has increased by 100% in searches. Property chains occur when there is more than one buyer involved in the deal. To be precise, it means a person becoming a seller and a buyer at the same time. For example, you are buying a property from someone who is moving into a new property they are buying from someone else. This can cause delayed or failed deals, so make sure to choose a seller carefully.
Gazundering is on the opposite side of gazumping, and it has increased in search terms by 100%. It describes a process when buyers settle property offers but then lower them before the contract exchange. As a result, many sellers usually have to go back to the beginning and start looking for new buyers or feel forced to agree to not very favourable deals.
Mostly due to the heated property market and the pandemic-related issues, searches for conveyancing increased by 90%. The term simply means all processes associated with legal property ownership transferring from one person to another. In most cases, there are ownership transfers from sellers to buyers.
A seemingly familiar term survey means something a little different in property language. It has increased by 60% in searches and refers to a thorough professional inspection of real estate to evaluate its conditions and find out if there are any problems with the structure.
People living in rented properties have to pay so-called ground rents. It has increased by 50% in search terms and means regular fee leaseholders need to pay to freeholders to occupy the land for a certain period of time. All the terms are set out in an agreement.
Property professionals thinks that potential inexperienced buyers may find it challenging to deal with the property jargon of real estate specialists when it comes to buying new homes or dealing with property in general. Usually, it can lead to costly mistakes due to simple misunderstandings. With some of the most popular property terms explained, there is hope that some potential homeowners will experience a smoother property buying process.