When browsing properties on Rightmove, you’ll encounter various terms that describe costs and ownership. Understanding these terms is crucial for making informed decisions, especially when it comes to auction properties and “guide price.” This guide will break down what “guide price” means on Rightmove and provide context with other relevant property terms.
Understanding Property Listing Terms on Rightmove
Rightmove uses specific terms to describe property costs, ownership types, and other essential details. Here’s a breakdown of key terms you might encounter:
Sales Listings
Price
The purchase price indicates the total cost of buying a property. Consider mortgage payments, deposit, stamp duty, legal fees, and moving expenses.
Type of Tenure
Tenure defines how you legally own the property and any associated costs or obligations.
Freehold
You own the property and the land. You’re responsible for maintenance and have greater freedom for alterations.
Share of Freehold
Ownership of the freehold is shared, common in flats. Responsibilities are similar to freehold.
Leasehold
You buy the right to live in the property for a fixed term. The freeholder owns the land, and you typically pay ground rent and service charges. Lease extensions can be expensive.
Commonhold
A type of freehold for properties within an estate. Common areas are managed by a commonhold association.
Non-traditional Tenure
Properties that do not fit into standard freehold, leasehold, commonhold structures. This is very uncommon but most often occurs with park homes and houseboats where you will own the park home / houseboat but will need to rent the land / water on which is sits / berths from the owner of the park home site or mooring.
Shared Ownership
A leasehold where you buy a share of the property and rent the remainder.
Length of Lease
The duration you’ve bought the right to live in the property. Ownership reverts to the freeholder upon expiry.
Ground Rent
A regular payment from the leaseholder to the freeholder. Failure to pay can lead to repossession.
Ground Rent Review Period
The intervals at which ground rent can increase, potentially impacting future affordability.
Peppercorn Rent
A nominal rent paid by a tenant to a landlord.
Annual Service Charge
Covers building insurance, caretakers, and maintenance of shared areas.
Sales Listings (Auctions)
This is where understanding “guide price” becomes paramount.
Guide Price
The guide price on Rightmove for auction properties is an indication of the seller’s minimum expectation. It’s presented as a “Guide Price” or a “Guide Price Range”.
It’s important to note:
- Not a fixed price: The property might sell for more or less than the guide price.
- Subject to change: The guide price can be adjusted before the auction.
- Not necessarily the selling price: Be prepared to bid higher.
Reserve Price
The reserve price is the minimum price the seller will accept at auction. The property will not be sold if bidding doesn’t reach this price. Usually, the reserve price is within the guide price range or up to 10% above a single guide price.
Lettings Listings
Rent
The amount and frequency of rental payments.
Security Deposit
Security for the landlord against damage or unpaid rent.
Tenancy Length
The minimum duration the landlord offers to let the property.
Sales and Lettings Listings
Council Tax Band
A payment to the local authority for local services, based on property value.
EPC Rating
An Energy Performance Certificate (EPC) indicates a home’s energy efficiency (A = most efficient, G = least efficient).
Listed Property
Designated as architecturally or historically significant, requiring special permissions for alterations.
Grade I listed
Buildings of exceptional interest.
Grade II listed
The most common classification, including private and public buildings of special interest.
Grade II* listed
Particularly important buildings of more than special interest.
Rights and restrictions
Rights of Way
Various types of access allowed on a property.
Public Rights of Way
Legal obligation to allow public access to private property.
Private Rights of Way
The right for other private citizens to cross your land
Rights of Way – easements
The right to use or cross your land without permission.
Rights of Way – servitudes
The right for another party to alter your land
Rights of Way – wayleaves
The right to use a small portion of your property in exchange for rent
Restrictions and Restrictive Covenants
Legal, community or personal restrictions around what you can and cannot do with the land you own.
Utilities
Basic services needed to keep a property comfortable and functional.
Parking
How and where vehicles can be parked, and any associated costs.
Accessibility
Properties designed for people with accessibility needs.
Flooding
Understanding the risk of flooding is crucial.
Navigating Rightmove with Confidence
Understanding these terms allows you to assess properties effectively on Rightmove. In the context of auctions, remember that the “guide price” is just an indication. Research thoroughly, consider your budget, and be prepared for competitive bidding. By understanding the nuances of property listings, you can navigate Rightmove with greater confidence and find the right property for your needs.
