Glossary Of Terms Relating To Repossessed Property
Welcome to our comprehensive glossary of terms related to repossessed, foreclosed, derelict, abandoned, neglected, and empty properties. Whether you are an investor, a potential homebuyer, or simply interested in understanding the market, this glossary is designed to help you navigate the complex terminology associated with these types of properties.
Properties that fall into these categories can present unique opportunities but also come with specific legal and financial implications. Understanding the language used in this sector is crucial for making informed decisions. Our glossary covers essential terms and definitions, providing you with the knowledge you need to confidently engage with the market.
Explore the glossary below to familiarise yourself with key concepts and terminology. This resource is here to ensure you have all the information necessary to understand and succeed in the world of repossessed, foreclosed, derelict, abandoned, neglected, and empty properties.
- Abandoned Property: Property that has been deserted by the owner with no intention of returning. Such properties may become derelict over time.
- Arrears: Outstanding payments on a loan or mortgage that have not been paid by the due date.
- Auction: A public sale where properties, including repossessed and abandoned properties, are sold to the highest bidder.
- Bailiff: An officer of the court authorised to seize and sell the property of a debtor to satisfy a court judgment.
- Bankruptcy: A legal status for individuals or entities unable to repay their debts to creditors, which can lead to repossession of assets.
- Bridging Loan: A short-term loan used to bridge the gap between the sale of one property and the purchase of another, often used in the context of buying repossessed or derelict properties.
- Buy-to-Let: Purchasing a property specifically to rent it out to tenants. Repossessed, derelict, and neglected properties can be attractive for buy-to-let investors due to their lower prices.
- Collateral: An asset offered by a borrower to a lender to secure a loan. If the borrower defaults, the lender can seize the collateral.
- Compulsory Purchase Order (CPO): A legal function in the UK that allows certain bodies to obtain land or property without the consent of the owner, often used to acquire abandoned or derelict properties for redevelopment.
- County Court Judgement (CCJ): A court order in England, Wales, and Northern Ireland issued against someone who fails to repay money they owe. A CCJ can lead to repossession.
- Default: Failure to fulfil the legal obligations of a loan, such as making regular payments.
- Derelict Property: A building or land that is in poor condition due to neglect or abandonment.
- Empty Property: A property that is unoccupied. This can include properties that are for sale, under renovation, or simply unused.
- Equity: The value of an ownership interest in a property, calculated by subtracting any outstanding mortgage or loan balances from the property’s current market value.
- Eviction: The legal process of removing a tenant or occupant from a property.
- Foreclosure: The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments, usually leading to the sale of the property.
- Interest-Only Mortgage: A type of mortgage where the borrower only pays the interest on the loan for a set period, with the principal balance remaining unchanged.
- Loan-to-Value (LTV) Ratio: A financial term used by lenders to express the ratio of a loan to the value of an asset purchased. It is commonly used in mortgage lending to assess the risk of a loan.
- Negative Equity: A situation where the value of an asset falls below the outstanding balance on the loan used to purchase that asset.
- Neglected Property: Property that has not been properly maintained, leading to deterioration.
- Possession Order: A court order that gives a lender the legal right to take possession of a property, often a step before eviction.
- Repossession: The process by which a lender takes back property when the borrower defaults on their mortgage payments.
- Short Sale: The sale of a property for less than the balance remaining on the mortgage. This can occur as an alternative to foreclosure.
- Squatter: A person who unlawfully occupies an empty or abandoned property.
- Urban Blight: The process by which a previously functioning city, or part of a city, falls into disrepair and decrepitude, often leading to an increase in derelict properties.
- Vacant Property: Another term for an empty property that is not currently occupied.
- Valuation: The process of determining the current market value of a property. Essential for setting auction reserve prices or for securing a mortgage.
- Voluntary Surrender: When a borrower voluntarily hands over the property to the lender instead of going through the repossession process.