Here is a list of common terms that are frequently used by those in the property development sector. For development funding, contact Donkey Finance.
Donkey Finance offers a diverse range of competitive property development funding solutions which are flexible, practical and tailored to your needs. We work with a variety of lenders and investors in order to provide the best rates and the most appropriate funding solutions for any given project.
Here is a glossary of terms that you are likely to encounter when reading through the various the pages on our website or when planning a development project:
Accessibility - This describes an individual's ability to access a given area or building.
Capital - The money invested in a residential or commercial property.
Capital Gain - The increase in value of an investment over a given length of time.
Change of Use - This is when a developer intends to change the way in which a building is used; for example, converting an office block into residential flats, or vice versa. In most cases, planning permission is required.
Contract for Sale - A legally binding document that describes the outlining details of land sale in any part of the UK.
Covenant - A written document that relates to the various terms of a real estate transaction. A covenant can include the rights of access given to a third party or it may provide a warranty that specifies whether or not a property title has any claims.
Environmental Agency - A governmental department that is responsible for the prevention of pollution and its effects on the local environment. As well as raising environmental concerns, the Environmental Agency can issue fines and penalties to any party found in violation of waste removal laws.
Green Belt - This refers to an area of land that is protected against development.
Judicial Review - This refers to a High Court hearing which reviews a previously made decision by a local authority. This often includes planning decisions.
Lawful Development Certificate - A certificate which indicates that a development has been approved to go ahead. LDCs are issued by a local planning board.
Limits of Development - Before a building project commences, the local council may impose various restrictions with the aim of protecting the surrounding environment from intrusive construction work.
Localism Bill - A legal ruling which provides written approval of a party’s right to build on a local property. This bill was passed recently by the Coalition Government.
Master Plan - The architectural blueprints and final outline for a property development project.
Planning Brief - This refers to a type of document which is submitted to a local council, specifying the intended scope of a development. A planning brief includes detailed information on the design and framework of a construction alongside the master plan.
Planning Permission - The legally required approval from a local council to go ahead with a development project. This can be requested via an official planning application which contains the developer's outline for the project. Once planning permission has been acquired, the developer will receive an official notice to start the development.
Prior Approval - If a developer submits a proposal for a project and it has not been processed or turned down by the planning authority in a given timeframe, it can be automatically assumed that permission has granted.
ROI (Return on Investment) - This is the return on an initial investment expressed as a percentage value.
Right to Build - This is included as part of the Localism Bill and it empowers local communities to make independent decisions on whether or not a development should be allowed to take place.
Rural Exceptions Policy - A policy which allows affordable housing developments to take place on pre-allocated sites in rural areas. This is aimed at providing reasonably priced accommodation for those in poverty.
Section 106 Agreement - This is a legal treaty which specifies whether or not additional construction may be carried out once the initial construction phase has started. Section 106 agreements are made between developers and local authorities.
Sustainability Appraisal - This is an evaluation that is carried out by a local council in order to create a sustainable housing supply for the next 15 to 20 years. It enables developers to create new neighbourhoods to provide affordable accommodation in overpopulated areas.
Title - Under English law, all of the land in England is officially owned by the Crown. However, tenure of the land is granted to citizens by means of a title.
Urban Regeneration - This is a continual development process aimed at improving the growth in cities and large towns, in terms of housing, the local economy and the environment as a whole.
ZVI or Zone of Visual Influence - This refers to the potential view that will be created when a development is constructed.
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