Typically used to describe a situation where the Loan-to-Value is higher than 100%; essentially the loan value is greater than the property value. The term can also be used to describe a situation where a property owner would make a loss on the disposal of a property. Prices could have fallen in between purchase and sale, or prices may have remained flat or marginally increased, but by the time all costs (SDLT, maintenance, refurbishment, etc.) have been accounted for, a loss is made.
