Glossary of terms

Some of the words and terms used throughout the right to invest pages are technical, legal or financial references. In case you are not familiar with all of these terms, we have explanations for you here.

Affordability assessment

This is the method we use to assess your financial suitability to take part in the right to invest scheme.

The minimum requirements are that your net annual income is at least 4.5 times the amount of your mortgage and that your monthly repayment is less than 45% of your net monthly salary.


These are improvements that are made to double glazing, a fitted kitchen, or a bathroom suite (as described in Part E of the tenant shared ownership or right to buy application).

Initial share

This refers to the first share of your home that you choose to purchase. This can be for 25%, 35% or 50% of the equity in the property.

Initial discount

This is the amount of discount payable under the tenant shared ownership scheme when buying the initial share. It refers to your right to buy discount.

Major works

Improvement or repair works costing more than £250 per unit.

Market value

This is the value of a property for sale on the open market by a willing vendor and a willing buyer.

Qualification check

These are the checks we carry out to make sure you meet the eligibility criteria for the scheme.

Service charge

The service charge is a payment made by a leaseholder to meet the cost of management services such as communal cleaning and caretaking.

Share ceiling

This is the 70% percentage maximum share purchase that you can make under the tenant shared ownership scheme.


The process through which you can increase your percentage share of a lease.

Succession of tenancy

This refers to passing on your tenancy to a family member living with you.

Unadopted estate land

This is a defined area of land within an estate boundary that has not been adopted under the Highways Act and is not therefore maintained at public expense.

Useable discount

This refers to the amount of discount that will be released with an additional share purchase.