Learning The Homeowner’s Vocabulary: A First Time Buyer’s Guide

Buying a home can be a long-drawn-out process, with the average property purchaser taking around six months to make their way from that very first viewing to getting their hands on the keys to their new abode. 

During this time, you’ll come up against a LOT of jargon – terms that can leave even the most seasoned buyer scratching their head. If you’re a first-time buyer, this unfamiliar language can feel even more overwhelming. 

At our new homes in Darlington, we’ve welcomed individuals from all walks of life – from complete newcomers to those who have moved several times before. 

Steps Towards First Time Home Buyer Guide

No matter your level of experience, one thing remains the same: everyone wants the property buying process to be as straightforward, simple, and jargon-free as possible. 

This is why we’ve put together this helpful first time house buyer guide. Throughout the following, you’ll find explanations of the most common property buying terms that you’ll be most likely to use when you go through it, and how to navigate each step with confidence. 

1. Freehold

When searching for a property, you’ll come across two forms of ownership: freehold and leasehold. 

A freehold property is where the property, and the ground beneath it, is owned outright. It is the most generic type of ownership within the UK, especially for domestic dwellings. You are not risking losing the lease or paying ground rent if you have a freehold house, which helps to make the purchase more attractive. 

Tip: If you’re looking for a home for life or a long-term investment, freehold brings complete peace of mind and independence.

2. Leasehold

While less common for houses, leasehold ownership is very popular with flats and apartments.  

If you have a leasehold, you have the right to occupy the building but not the land it stands on – this is owned by the freeholder (landlord). You’re actually purchasing the right to use the building for a limited time, decades, or centuries. 

Standard lengths of leases are 125 to 999 years. The longer, the better – below 80 years is a devil with mortgage lenders and will reduce resale value. With all that said, you usually have the option to negotiate a lease extension from the freeholder, but it is very costly. 

Tip: It’s always worth finding out what the remaining lease term is before you purchase. A property with an extremely short lease could cost you a lot in the future. 

3. Ground Rent and Service Charges

When you buy a leasehold property, you will likely face ground rent (a fee to the freeholder to use the land) and service charges (fees for communal upkeep, e.g., gardens, lifts, or communal corridors). They are normally very complex, so please explain this to me in simple terms. 

Tip: Getting the breakdown of a service charge explained beforehand will help you budget better. 

4. Conveyancing

When you have found your ideal house, the legal process of sale and purchase begins. This is known as conveyancing. 

Conveyancing will commence as soon as your offer has been accepted and will continue right through to completion. To guide you, you will need to appoint a conveyancer or solicitor who will organize all the legal searches, contracts, and documents for you. 

The key things your conveyancer will be undertaking are: 

• Title searches to the property (ensuring the seller has a valid right to it) 
• Local authority searches (e.g., planning restrictions or risk of flooding) 
• Drafting and going over contracts 
• Ensuring payment of money 
• Legally registering you as the new owner at the Land Registry 

Tip: Make sure to select a conveyancer who has positive feedback and fee disclosure. Cheaper may be cheerful, but this will result in delays or poor communication. 

5. Chain

The most terrifying barrier to residential transactions is the property chain. 

A chain occurs when a group of buyers and sellers is linked together, each sale depending on another.  

For example, if you’re buying a house from someone who is also buying another property, you’re part of a chain. These chains can be short (just two or three people) or very long, with multiple linked transactions. 

The longer the chain, the greater the chance of delays or complications. That’s why first-time buyers and chain-free sellers (people selling without needing to buy at the same time) are often considered highly desirable – they simplify the process. 

Tip: If you’re chain-free, highlight this when negotiating. It can make your offer more attractive to sellers. 

6. Exchange of Contracts

The exchange marks one of the most crucial stages of the buying process. This is when the contracts are signed by both buyer and seller and formally exchanged by the solicitors. From this point onwards, the agreement is legally binding. 

At the exchange, you’ll typically pay your deposit (usually 5–10% of the property price). Once exchanged, neither party can back out without facing significant financial penalties. 

Tip: Make sure you’re 100% ready before exchange – prepare your mortgage offer, survey, and finances weeks in advance. 

7. Completion

Completion is the last stage of conveyancing and the most exciting part of it all – it’s when you officially own your new home! 

On the completion date, your solicitor pays over the purchase money to the other party’s solicitor, and on clearing of such payment, the keys are then handed over to you. You can now take possession and start occupying your new home. 

Tip: Completion dates are usually booked in advance, so make arrangements for your removals, connection of supplies, and notice of change of address accordingly. 

Wrapping Up:

The process of buying a home is sometimes intimidating, full of terminology, forms, and seemingly endless decisions. But with the most commonly used terms – from freehold and leasehold to conveyancing, chains, exchange, and completion – the whole process does not seem so intimidating. 

Whether you are looking at new homes in Darlington or anywhere else in the UK, understanding the first-time home buyer guide terminology will make you feel more confident, avoid costly mistakes, and see you through each step with ease. 

Buying a home of your own is an experience to be savored – so do it slowly, learn as much as you can, ask as many questions as you like, and before you know it, you’ll own a place of your own.