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There are currently 126 names in this directory
180 Day Value
180 Day Value - The value of a property if restricted to be sold within 180 days.

A1 use
A1 use - Retail sale of goods other than hot food

A2 use
A2 Use - Financial and Professional Services

A3 use
A3 Use - Food and Drink

Administration - a person or company appointed by a debenture holder, director or creditor to manage a company out of insolvency and continue as a going concern.

Aged Debtors
Aged Debtors - A report of all the unpaid invoices owed by debtors and when they are due for payment.

Alternative Lender
Alternative Lender - An alternative to a high street lender, that provides business finance. Alternative lenders typically act faster and have a less stringent criteria to lending than a high street lender.

Anchor Tenant
Anchor Tenant - The tenant that provides the greatest attraction in a development, such as a supermarket or large high street retailer.

Application for payment
Application for payment - Relating to construction finance - the application by a contractor or subcontractor for payment materials used and work done in accordance to the construction contract.

Architect Certificate
Architects Certificate - Certificate from a firm of architects confirming the value of the work carried out to date and the amount due for payment at any given time. The Quantity Surveyor usually provides the amount.

Article 4 Direction
Article 4 Directon - An order made by a local planning authority to remove certain permitted development rights in all, or part of, its area.

Asset Finance
Asset Finance - A high value equipment such as machinery or vehicle is purchased by a finance company and leases (rents) it to a business to operate their business for a fixed amount over the life span of the equipment.  The amount is usually paid monthly and consists of the capital cost of the asset plus interest.

Assignment of lease
Assignment of lease - The lease contract held by a lessee or tenant is transferred to another party.

Assured Shorthold Tenancy (AST)
Assured Shorthold Tenancy (AST) - In England and Wales - a residential tenancy contract between landlord and tenant that usually lasts for 6 or 12 months. The landlord reserves the right to take possession of the property at the end of the tenancy subject to two months notice, unless a new agreement is made.

Average Daily Rate
Average Daily Rate (ADR) – is predominantly used in the hotel industry measuring average daily revenue per occupied room for any given time.

Automated Valuation Model (AVM) - An automated system, using algorithms and market data to value properties without physically being on site. Used typically by lenders to reduce the cost and speed up the mortgage application process.              

B1 use
B1 Use - Business

B2 use
B2 use - General Industrial

B3-B7 use
B3-B7 use - Special Industrial Groups

B8 use
B8 use - Storage and distribition

Banking Covenant
Banking Covenant - An agreement between a bank and borrower to meet certain financial conditions of a loan.


Bankruptcy - An insolvency procedure usually initiated by an individual, sole trader or individual of a partnership to seek protection from the court to repay creditor debt.

Bridging Loan
Bridging Loan - Bridging finance is a type of short-term loan for individuals or a company. They are typically taken out for 3-24 months and ‘bridges the gap’ pending full repayment usually through the arrangement of a long-term loan or sale of property.

Brownfield Site
Brownfield Land - Land which has already been used or developed. Government policy usually favours the development of these sites. Environmental reports are generally essential.

Building Notice
Building Notice - An application with intention to carry out building work - usually to a small residential project - without providing full plans to the local authority. Works can start two days after submission. The builders are responsible to ensure the works comply with regulation and completion certificates must be issued by the building control inspector to evidence compliance when required during and at the end of the building project.  

Business Rates
Business Rates - Statutory tax on the occupation of a commercial property.

C1 use
C1 use - Hotels and Hostels

C2 use
C2 use - Residential accommodation and care to people in need of care.

C3 use
C3 use - Dwelling House or up to 6 people living together as a single household

C4 HMO - Allows for the use of a dwelling house as an HMO with up to 6 unrelated residents sharing amenities such as bathroom and kitchen.

Collateral Warranty
Collateral Warranty - A deed granting the beneficiary - usually a lender, occupier or buyer contractual rights against a building contractor or professional employed by or on behalf of the developer. Collateral warranties often contain step in rights to allow the beneficiary to take over the contract for example in the event of default of a loan.  

Commercial Delphi Score
Commercial Delphi Score - An analytical tool designed to highlight the strength, performance and ultimately the creditworthiness of each company in a single score. The score ranges from 0 to 100 with the lowest scoring companies carrying the highest risk.

Commonhold Tenure
Commonhold Tenure - A leaseholder obtains the freehold of their unit and along with the other commonholders are responsible for the management and maintenance of the building via a commonhold association registered at Companies House.

Company Voluntary Arrangement (CVA)
Company Voluntary Arrangement (CVA) - A legal process allowing a company to enter negotiations with their creditors to repay some or all of its debt over an agreed period.

Comparables - Similar properties in similar areas are compared to to provide the basis for valuations of the Open Market Value or rental income.

Confidential Invoice Discounting
Confidential Invoice Discounting (CID) - A loan advance that is secured against all your client’s outstanding invoices. The amount advanced is usually 50-90% of the face value of the invoice minus fees and interest. With CID, the borrower retains control of  the credit collection process.

Construction Industry Scheme (CIS)
Construction Industry Scheme (CIS) - Contractors deduct money from a subcontractor's payments and pass it to HM Revenue and Customs (HMRC).

Covenant Waiver
Covenant Waiver - In finance, applies to a lender abandoning the requirement meet certain financial conditions of a loan.


Creditors Voluntary Liquidation (CVL)
Creditors Voluntary Liquidation (CVL) - is a formal insolvency procedure where directors or shareholders of an insolvent company voluntarily choosing to close the business and settle creditors in order of priority.

D1 use
D1 use - non residential institutions such as schools, library, public halls, places for religious worship etc.

D2 use
D2 use - Entertainment and leisure eg cinema, bingo's gyms etc

Debt to Equity Swap
Debt to Equity Swap - A capital restructure in which a creditor (usually investor or bank) of a company swaps the debt owed into a form of share capital or stock. This usually happens when a business is unable to meet its obligations to the creditor.

Deed of Postponement
Deed of Postponement - Occurs when one lender grants another lender priority over the security held to secure the respective debt. In the event of enforcement action, the lender with priority will have their debt paid off first from the proceeds.

Defects Liability Period
Defects Liability Period - A time period of usually 6-12 months (sometimes longer depending on project) where the contractor of the building project remains legally responsible for defects that have become apparent after practical completion.    

Design and Build
Design and Build - The contractor assumes full responsibility for the detailed design and construction of the building.

Desktop Valuation
Desktop Valuation - A valuation of a property carried out with limited information and when a physical inspection is not possible.

Dilapidations - A state of disrepair in a leased property where the lessee has accepted legal liability for repairing the property. Should the lessee negate on this obligation, the lessor will suffer financial loss.

Easement - An agreement with the owner of land the right of use or possession.

Equitable Charge
Equitable Charge - Ownership or possession of property does not pass to a creditor but gives them the right to the judicial process for recovery of the loan amount in case of non-payment.

Equity Finance
Equity Finance - Raising capital through the sale of company shares or converting debt to equity.

Evergreen facility
Evergreen Facility - A facility that rills over after each agreed period until cancelled by one party.

Excise Duty
Excise Duty - An indirect tax levied on manufactured goods such as fuel, tobacco and alcohol. The cost of the levy is usually passed on to the buyer of such goods.

Extended Payment Terms
Extended Payment Terms - The agreement to extend the time to settle the amount due to a creditor for example, landlord or supplier.

Final Completion Certificate
Final Completion Certificate - Certificate issued usually by the architect or lead consultant when the development has been fully completed and after the defects liability period -  usually 6 to 12 months. At this point, outstanding monies owed or due to the contractor is paid in full.  

Finance Lease
Finance Lease - An agreement between legal owner of an asset (leasing company or lessor) and lessee to use an asset for an agreed contract period. The lessee has full ownership of the asset and is usually responsible for the maintenance, repairs and insurance of the asset. At the end of the contract period, the lessee can agree a further extension at a lower cost, sell the asset and keep a share of the proceeds or return the asset to the leasing company. A finance lease is treated as a liability in the balance sheet.

Freehold - The property and the land on which it is built are owned outright rather than held on long leases which is fro a predetermined amount of time.

Freehold Reversion
Freehold Reversion - A property reverts back to the freeholder on expiry of the lease term or the lease is purchased by the freeholder.

Full Repairing and Insuring Lease (FRI)
Full Repairing and Insuring Lease (FRI) - Lease offered on an FRI basis place all repairing, inside and out and insuring responsibility on the Tenant for the duration of the lease.

Gazumping - A practice where a seller accepts a higher offer from a third party after having accepted an offer (subject to contract) from the buyer.

Gazundering - A practice where a buyer reduces its offer after the original offer has been accepted. Commonly made someway during the transaction.

Good Marketable Title
Good Marketable Title - The property title is free of encumbrances.

Greenfield Land
Greenfield Land - Land that has not been previously used for development. Contrast with Brownfield Land.

Head Lease
Head Lease - The original lease agreement provided by the freehold owner.

Hire Purchase
Hire Purchase - High value equipment is leased by a business (lessee) from an asset finance (lessor) provider. The asset is not owned by the lessee, therefore, the lessor maintains and insures the asset and charges a fixed monthly or quarterly amount in capital and interest for a fixed leasing period. At the end of the fixed leasing period, the lessee usually takes full ownership by paying a balloon payment which equates to the asset value at that point in time. In accounting terms, the asset is treated as both an asset and a liability in the balance sheet, with the rental payments treated as an expense in the profit and loss account.

Hope Value
Hope Value - The value of the site based on the expected value of a property when planning consent is obtained.

Interim certificate
Interim Certificate - A process for the employer or developer to make payments to a contractor before the works are complete.

Investment Value
Investment Value - Is the value of a property to a particular investor. The value can be higher than the Market Value if the investor has the savvy to manage the property to maximise profit or returns that other investors may have missed.  

Invoice recourse period
Invoice Recourse Period - The time a invoice finance company allows for an invoice to be paid before withdrawing the funding of the invoice.

Joint Contracts Tribunal (JCT) - Standard industry contract between the employer (usually the borrower) and the main contractor. JCT contracts can exist between the employer and professional consultant for example Architect and also between main contractor and subcontractor.

Latent Defect
Latent Defect - Defect in a building that exists well after completion of a building project but has yet to become apparent. Defects could be in design, structural and/or materials used. Insurance can be taken out to protect against Latent Defects.

Lease Agreement
Lease Agreement - The legal lease document between the owner and the leaseholder, outlining the terms and conditions under which the leaseholder occupies the property.

Lessee - The person or company who is signing/taking the lease.

Lessor - The person or company who is offering the lease.

Licenses - a simplified lease taken over a short period of time. A contractual right, falling short of what is recognised as a legal tenancy, to use or occupy property of another.

Loan note debt
Loan note debt - A financial instrument outlining the terms of a loan between and borrower and the lender. Also referred to as a debenture.

Loan Quantum
Loan Quantum - The amount that you borrow.

Long Leashold
Long Leasehold - There is no statutory definition. Normally a lease is in excess of 70 years.

Loan to Value (LTV) - The percentage of the amount of lending provided to the customer against the value of the property.

Market Valuation
Market Valuation - The price of a property where both seller and buyer transact knowledgeably, under normal market conditions and without duress.


Market Value
Market Value - Definition adopted by RICS means "the estimated amount for which a property should be exchanged on the date of the valuation between a willing buyer and willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion".

Marriage Value
Marriage Value - The increase in value a property following the extension of the lease.

Net Book Value
Net Book Value - The value of an asset in the balance sheet after deducting depreciation.

Net Rental Income
Net Rental Income - Gross income less rents which are payable to superior landlords, contributions towards insurance premiums, service charge and other outgoings that are not recoverable from the tenants. A measure of net cash generated by the landlord from the property.

National House Building Council (NHBC) - Supplier of insurance cover to purchasers of new residential property in respects of significant defects in construction.

Non Standard Construction
Non Standard Construction - Buildings not constructed from masonry, stone or timber frame.

Operating Lease
Operating Lease - An agreement between leasing company (lessor) and business (lessee) to use an asset for an agreed lease contract period that is usually less the working life of the asset but for a period in line with the needs of the business for example, to fulfull a contract. The lessee does not have ownership of the asset and is usually responsible for the maintenance, repairs and insurance. At the end of the lease contract period, the lessee hands back the asset.

Over-rented - Rent being achieved for the property is in excess of the current market rentals.

Phoenix Company
Phoenix Company - A phoenix company is formed when the assets of an insolvent company are purchased by the company's directors during an insolvency such as administration or liquidation.

Possessory Title
Possessory Title - A person who owns land or property but does not have the title deeds or is able to prove ownership at Land registry, as the deed may have been lost, destroyed or stolen in the past.

Practical Completion
Practical Completion - A certificate usually issued by the architect or lead consultant to certify that the property has been completed in accordance with the development agreement. Some minor works (snagging items) may remain during defects liability before a certificate of final completion is issued.

Pre-Let - A property on which a lease has already been agreed in advance of the property being purchased or developed.

Prime Location
Prime Location - Prime location properties is considered as the best location for a property to generate the highest value and rental in the market. Some factors that determine whether a property is in a prime location include its transport links, quality of services and amenities such as shops and parks, overall wealth and level of regeneration and development of the area.

Rack Rent
Rack Rent - The market rent for a property. Sometimes referred to as excessive or extortionate rent.

Ransom Strip
Ransom Strip - a small piece of land retained following sale of a larger plot. This is usually adjacent to a development site that is or may be an essential feature of a development. The owner may be able to demand a price for the land exceeding its intrinsic value by virtue of the developers need to use it.

Red Book Valuation
Red Book Valuation - A valuation report of a property that complies to the Royal Institution of Chartered Surveyor's (RICS) guidelines.

Reinstatement Cost
Reinstatement Cost - The estimated cost of rebuilding or restoring a building after destruction.

Rent Review
Rent Review - Pre-agreed period review of the rental payments due under a lease, through negotiation between the lessor and lessee, usually every 5 years.

Rental Incentives
Rental Incentives - Short term incentives offered to lessees to encourage them to take on a lease e.g rent free period.

Residual Debt
Residual Debt - Amount of debt remaining after repayments due under the bank loan have expired or the lease has expired.

Residual LTV
Residual LTV - The percentage of the amount of debt remaining after repayments due under the bank loan have expired or the lease has expired as compared to the original value of the property.

Residual Valuation
Residual Valuation - The Residual value for mortgage purposes calculates the value of the land. This is calculates using the expected sales value or gross development value minus development costs and developers profit.

Restrictive Covenant
Restrictive Covenant - A legally binding restriction on the use of property or land written in the deed of property.

Retentions - The owner of the development may hold back some of the payment due to the contractor/developer as security, to cover any structural problems caused by the under-performance by the contractor/developer. The retention is usually 3-5% until practical completion. Further amounts can be held during the defects liability period following practical completion.

Reverse Premium
Reverse Premium - a payment by a landlord to a tenant as an incentive to take a lease wither because of market conditions or to assist with fitting out costs (or both). Generally, the payments to the tenant is taxable.

Reversionary Rental
Reversionary Rental - The difference between the current passing rent under the lease and the current estimated rental value.

Schedule of dilapidations
Schedule of dilapidations - A list of the requirements of repair and maintenance which a tenant (or landlord) is obliged to make good under the terms of a lease or tenancy of a property. Interim schedule is during the course of the lease, a terminal (final) schedule at expiry. In the latter case, the obligation is usually discharged by a cash payment.

Section 104 Agreement
Section 104 Agreement - An agreement under S104 of the Water Industry Act 1991 by which a developer agrees to construct sewers to a specified standard, and the local water company agrees to maintain them after completion of construction and expiry of the maintenance period. On adoption the sewer will become a public sewer.

Section 106 Agreement
Section 106 Agreement - A legally enforceable agreement between the local planning authority and the owner of any land in their area, where the applicant is seeking planning approval and is used by Local Authorities to document the contribution the developer is to undertake to carry out works for the benefit of the community.

Section 24
Section 24 - Private can no longer claim mortgage interest as tax deductible expense. introduced in April 2017 and fully phased in 2020. This is replaced with the 20% flat rate relief.

Section 38 Agreement
Section 38 Agreement - An agreement under the Highways Act 1980 by which a developer agrees to construct a road to a specific standard at the taxpayers expense.

Selective Invoice Discounting
Selective Invoice Discounting - Also known as spot finance and single finance allows a business to get an advance from an invoice discounter against specific invoices.

Stamp Duty Land Tax
Stamp Duty Land Tax - A tax levied when you buy houses, flats and other land and buildings over a certain price in the UK.

Sub Lease
Sub Lease - A lease provided to the tenant of a property by the holder of a head lease.

Sui Generis HMO Planning
Sui Generis HMO Planning - Allows for the use of a dwelling house as an HMO with up to 7 unrelated residents sharing amenities such as bathroom and kitchen.

Title Indemnity Policy
Title Indemnity Policy - Insurance taken out to protect lenders from challenges to the title on a property. The policy protects the policyholder from loss due to a situation which has already occurred, such as a forged deed in the chain title. The policy continues until the property is sold. Title indemnity Insurance is often taken out in Bridging Finance transactions to speed up the completion process and avoid delays in title searches.

Underlease - English terminology for sub-lease.

Unrecoverable Costs
Unrecoverable Costs - Cost incurred by the landlord, which is not recoverable from the tenant.

Upward only rent review
Upward only rent review - A provision in a lease which allows the rent to stay the same or increase, but not decrease regardless of market conditions at time of review.

Vacant Possession
Vacant Possession - a property for sale with legal possession and which has nothing or no person (such as a tenant) in occupation to prevent a purchaser enjoying actual possession.

Vacant Possession Value
Vacant Possession Value (VPV) - Market value of the property based on it being empty.

Void - A period when a rental unit is empty

WAULT - Weighted average unexpired lease term

Wayleave - A right of way granted by a landowner to lay cables, pipes or conduits in exchange for a financial payment.  

Wimpey No-Fines House
Wimpey No-Fines House - Post war buildings intended for mass social housing built by George Wimpey. In the past these buildings, whilst structurally sound, were considered of lower quality construction by modern standards.

Winding up order
Winding up order - also referred to as a compulsory liquidation is a legal process where a creditor petitions to the court - and if granted,  appoint an official receiver or insolvency practitioner realise the value of assets to pay creditor in order of priority.

Yield - a measure of return on investment achieved by the owner of the property. Equation Rental income ÷ Property Value x 100 = x%.