Expenses incurred that have not yet been invoiced. Funds are set aside – accrued – in anticipation of the invoice.
A fee taken by Assetz Exchange when a property is first purchased. Read more.
Assured shorthold tenancy. This is the most common form of tenancy in the UK.
A price put forward by an investor to buy an investment on the Exchange.
The increase in the value of an investment due to the rising price of the investment. If the investment is sold at this increased value then the gain is said to be realised, otherwise the gain is unrealised.
A buffer set aside to cover any unexpected costs. Read more.
The target level of a contingency balance. Read more.
The legal transfer of a property from one owner to another
Costs that have been incurred and invoiced but not yet paid.
A custom-built home is a home built to a plan specifically customised to the buyers’ requirements
Income we have been advised is taxable on the investor as dividend income for income tax purposes. Investors should seek their own tax advice. Read more.
Our marketplace for investors to buy or sell their investments
The Financial Conduct Authority is a financial regulatory body that regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.
The freeholder of a property owns it outright, including the land it’s built on. The freeholder is responsible for maintaining the property and land.
Full repair, maintenance and insurance lease. A lease where the responsibility to undertake any repairs or maintenance and to take out insurance falls on the leasee.
The gross price is the net price + FCC.
House in multiple occupation. A home is an HMO if at least three tenants live there, forming more than one household with bathroom or kitchen facilities shared between tenants.
House price index. This is a national statistic produced by the Land Registry that shows changes in the value of residential properties in England, Scotland, Wales and Northern Ireland.
Income we have been advised is taxable on the investor as interest income for income tax purposes. Investors should seek their own tax advice. Read more.
The owner of a house or property that is leased to an individual or a business.
A contract outlining the terms under which one party agrees to rent property owned by another party.
An arrangement where a company sells a property to a purchaser and then leases it back from them for a given period of time.
Funding part of a property purchase with a mortgage.
The net price is the price of the property excluding the costs associated with the purchase. This is the price you would typically see advertised in an estate agent or on Rightmove.
Net price (Sell)
Value of a property based on the lowest price offered by a seller on the Exchange.
Loan to gross development value. The loan amount expressed as a percentage of the expected valuation of the development when it is complete. This is calculated by dividing the loan amount by the RICS valuation for the completed development.
Loan to value. The loan amount expressed as a percentage of the valuation of the development. This is calculated by dividing the loan amount by the RICS valuation for the site as is.
A percentage of the gross rent received for the property taken by Assetz Exchange to cover day-to-day systems and administration. Read more.
A price put forward by an investor to sell an investment.
Payments for goods or services that have not yet been received. An example is a service charge, as these are typically invoiced in advance for the following period.
Repair & maintenance lease
A lease where the responsibility to undertake any repairs or maintenance falls on the leasee.
A valuation of the property undertaken by a Royal Institution of Chartered Surveyors (RICS) registered surveyor. RICS is a professional body promoting and enforcing the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure.
Assetz Exchange’s assessment of the risk level of an investment
Stamp Duty Land Tax. A tax charged by the government on the purchase of property and land.
Service charges are payable by the leaseholder to the landlord (or landlord’s agent) for the services provided, as determined by the lease. Service charges normally include costs for maintenance, repair and insurance of the building and communal areas plus the employment of staff and management of the property.
A plot that is ready to build on. This means all utility connections, sewage and road connections are already in place
A display home built on a development designed to showcase what the unbuilt properties will look like when finished. These homes are typically in a prime location on site and come furnished to a high standard.
An individual or business that rents a property from a landlord.
All significant decisions impacting an investment on the platform will require an investor vote. Read more.
The complete return from a property/investment. This includes interest/rental income plus capital gains (realised and unrealised), alongside any bonuses paid.
An indication of how much of an annual return you are likely to get on an investment, calculated by expressing a years’ rental income as a percentage of how much the property cost.
The annual income expressed as a percentage of the current purchase price of the property.