Glossary
Quick definitions for UK property and stamp duty terms.
SDLT (Stamp Duty Land Tax)
The UK property transaction tax for England and Northern Ireland, charged on residential and non-residential property purchases above certain thresholds. Filed and paid within 14 days of completion.
First-time buyer relief
A reduced SDLT scheme for buyers who have never owned a property anywhere in the world. Pays 0% up to £300,000 and 5% on £300,001–£500,000. Disappears entirely above £500,000.
Additional Dwelling Surcharge (ADS)
5% extra SDLT on top of standard rates when buying a second home, buy-to-let, or any additional residential property worth £40,000+. Increased from 3% in October 2024.
Non-UK resident surcharge
An extra 2% SDLT charge on non-UK resident buyers of residential property in England or NI. Stacks on top of the additional dwelling surcharge if applicable.
Completion
The day the property purchase legally finalises — money transfers, keys are handed over, and the buyer becomes the legal owner. The 14-day SDLT filing clock starts here.
Exchange of contracts
The point in the conveyancing process where both parties sign and the deal becomes legally binding. Usually 1–4 weeks before completion. Buildings insurance is required from this date.
Conveyancing
The legal process of transferring property ownership from seller to buyer. Handled by a conveyancing solicitor or licensed conveyancer. Typically takes 8–14 weeks.
LTV (Loan-to-Value)
The size of your mortgage as a percentage of the property's value. A 90% LTV means you're borrowing 90% and putting down 10% as deposit. Lower LTV usually means better mortgage rates.
Agreement in Principle (AIP)
A non-binding indication from a mortgage lender of how much they'd be willing to lend you, based on a soft credit check. Typically valid for 30–90 days. Useful for showing estate agents you're a serious buyer.
Linked transactions
Multiple property purchases between the same buyer and seller (or connected parties). HMRC adds up the prices to determine the SDLT bands, which usually pushes you into higher rates.
Stamp duty holiday
A temporary period (most recently 2020–2025) where the SDLT 0% threshold was raised significantly to stimulate the market. The April 2025 reversion brought the threshold back down to £125,000.
Mixed-use property
A property combining residential and non-residential use (e.g., a shop with a flat above). Taxed at non-residential SDLT rates, which are usually significantly lower than residential — and not subject to the additional dwelling surcharge.