The Real Estate Glossary

Abbreviations A:

AIP - Application in Principle

AS - Assisted Sale.

AST - Assured Short Hold Tenancy.

ARLA - Association of Residential Letting Agents.

AT - Assured Tenancy (Agreement).

A1 shops

The retail sale or display of goods for sale other than hot food, including retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices (but not sorting offices), pet shops, sandwich bars and other cold food for consumption off the premises, showrooms, domestic hire shops, dry cleaners, funeral directors and internet cafes, in all cases where the sale, display or services is to visiting members of the public.The changes that are permitted to A1 plus a single flat above.

A2 financial and professional services

Financial services such as banks and building societies, professional services (other than health and medical services) including estate and employment agencies and betting offices. The permitted changes are to A1, A1 plus a single flat above, and A2 plus a single flat above.

A3 restaurants and cafes

For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes. The changes that are permitted are to A1 or A2.

A4 drinking establishments

Public houses, wine bars or other drinking establishments (but not nightclubs). The changes that are permitted are to A1 or A2 or A3.

A5 hot food takeaways

For the sale of hot food for consumption off the premises, the changes that are permitted are to A1 or A2 or A3.

Absolute compliance

Absolute compliance requires that the party covenanting, as such, complies with the requirements of the covenant in full. Where found in a break clause, absolute compliance with certain conditions is the prerequisite for success.

Acceptance
Document confirming to a lender that a borrower wishes to accept a mortgage offer.

Additional Security Fee
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Guarantee and Mortgage Indemnity Premium.

Adjudication

Adjudication provides a forum for disputes to be settled quickly, usually within 28 days. It is generally the statutory procedure for resolving building disputes. It has proved helpful in allowing work to continue and avoiding unnecessary tensions. An adjudicator's decision is binding, but the decision can be revisited in, for example, arbitration or a court of law.

Advance
Monies provided by a lender to a borrower and secured on the property as part of the mortgage debt.

Affordable housing

Housing available for purchase or rent at a price considered affordable to people with average or below-average incomes.

Agreement
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Contract.

Agricultural (Forestry or Other Rural Occupational) Dwelling

A dwelling that is subject to a planning condition or legal agreement restricting occupation to someone employed, or was last employed, in agriculture, forestry or other appropriate rural employment.

Alienation provision

Alienation provisions are those clause(s) in a lease which governs a tenant's ability to dispose of its leasehold interest.

Alterations

Alterations are works undertaken by the tenant that alter, cut, divide, relocate or modify the demise, including the building, partitions, mechanical and electrical services, or finishes.

Alternative Dispute Resolution (ADR)

Alternative Dispute Resolution (ADR) refers to various processes for resolving commercial disputes without seeking redress from the courts. In addition to arbitration, this most commonly means Mediation, Adjudication and Conciliation. Some pre-litigation protocols require, or strongly encourage, the use of ADR - particularly Mediation - before commencing legal proceedings, with potential consequences in the Award of Costs against non-complying parties.

Ancillary use

A secondary use incidental to the primary use of a building or development. For example, a sandwich shop that allows customers to eat on the premises may have an ancillary use of a restaurant.

Annual Percentage Rate (APR)
Total cost of a loan expressed as an annual interest rate. Provides a useful comparison when reviewing mortgage offers.

Antecedent Valuation Date (AVD)

This is the date by which market conditions are assumed to prevail. Physical factors are taken at or after a rating list is compiled. There is a two-year gap between the Antecedent Valuation Date and the publication of a Rating List which enables the Valuation Officer and the appellant ratepayer to consider rental evidence without needing to project or speculate.

Appeals

The process of challenging a decision by a planning authority, such as refusing planning permission. Appeals can be made to the Planning Inspectorate.

Arbitration

Arbitration is governed by statute. Agreements to refer disputes to a specialist arbitrator are often made in a lease or building contract. Arbitration is private; the arbitrator's award is final and binding and is based on evidence put forward. There are limited rights of appeal to the courts on procedural irregularities and points of law. This is a popular way of resolving property disputes where privacy and speed are essential.

Area Action Plans

A development plan focusing on a specific location or area.

Area of Outstanding Natural Beauty (AONB)

An area of land that has been designated for its natural beauty. AONBs are protected by law and have unique planning controls in place.

Arrangement Fee
Fee charged by some lenders to cover the administration of arranging a loan.

Arrears
Amount that is overdue in relation to a mortgage, which may result in action by a lender to repossess the property.

Article 4 Direction

A direction issued by a local planning authority that removes some or all permitted development rights from an area. Permitted development rights are the rights to develop land without planning permission.

Asking Price
Price set by the seller of a property as what they hope to achieve.

Asset valuation

An asset valuation is the formal "open market" or "existing use" valuation of land, offices and buildings or plant and machinery. Asset valuations are used in company accounts or for establishing the value of an asset for loan security or in merger & acquisition activity.

Assignment
Transfer of a right or claim to a property from one party to another.

Auction
Method of sale whereby a property is sold to the highest bidder.

Authorised Guarantee (AGA)

The Authorised Guarantee (AGA) concept was introduced by the Landlord & Tenant (Covenants) Act 1995 to implement changes to the law on the Privity of Contract on Assignment of a commercial property lease. It is an agreement that an outgoing tenant enters into with the landlord when it assigns its lease to a new tenant. Under the AGA, the outgoing tenant guarantees the performance of the covenants by the new tenant. The outgoing tenant, therefore, becomes the guarantor for the new tenant.

Authorities Monitoring Report

A report prepared annually by local planning authorities to assess the progress of their development plans.

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Abbreviations: B

BMV- Below Market Value

BMRV- Below Mortgage Redemption Value

BOE- Bank Of England

BRMV- Broad Rental Market Area

BTL- Buy-to-Let

BTS- Buy-to-Sell

B1 business

Offices (other than those that fall within A2), research and development of products and processes, light industry appropriate in a residential area. The changes permitted are to B8 (limited to a change of use relating to not more than 235 sq m of floor space).

B2 general industry

Use for industrial purposes other than those falling within class B1 (excluding incineration purposes, chemical treatment, landfill, or hazardous waste). The permitted changes are to B1 and B8 (limited to a change of use relating to not more than 235 sq m of floor space).

B8 (storage & distribution)

Storage, including open-air storage. The permitted changes are to B1 (limited to a change of use relating to not more than 235 sq m of floor space).

Backland Development

Development that takes place on land behind existing properties. Backland development is sometimes seen as inappropriate because of access problems, overlooking and shadowing.

Base Rate
Interest rate set by the Bank of England. Variable mortgage rates will often be adjusted depending on movements in the Base Rate.

Beneficial occupation

Beneficial occupation is one of the essential requirements in designating rateability. With exclusive occupation and sufficient permanence, beneficial use is required before any party can be subject to a business rate liability.

Biodiversity offsetting

Conservation activities are designed to deliver biodiversity benefits in compensation for losses in a measurable way. The Government has announced plans to introduce biodiversity offsetting schemes in the UK. The first pilot schemes began in the spring of 2012, aiming to test a 'metric-based approach' towards biodiversity conservation.

Borrower
Person who is obligated to repay a loan in accordance with its terms.

Breach of Conditions Notice

A notice served by a local planning authority on the property owner who has breached the conditions of planning permission.

Break clause
Defines the point at which a contract may be terminated.

Break notice

A break notice is a formal notification that one party wishes to exercise its right to terminate the lease (a break clause, option to determine or break option). Break notices must be served correctly and require care to ensure the right is successfully exercised. For example, the notice must be served the correct number of months before the break date and may require compliance with pre-conditions.

Break option

A break option (alternatively called a 'break clause' or 'option to determine') is a clause in a lease which provides the landlord or tenant with a right to terminate the lease before its contractual expiry date if specific criteria are met.

BREEAM

BREEAM (Building Research Establishment Environmental Assessment Method) is a recognised environmental assessment method and rating system for buildings, which was first launched in 1990. BREEAM is one of the most commonly used standards for best practice in sustainable building design, construction and operation and is a widely recognised measure of a building's environmental performance. A BREEAM assessment evaluates a building’s specification, design, construction and use, such as energy and water use, the internal environment (health and well-being), pollution, transport, materials, waste, ecology and management processes.

Bridging Loan
Temporary loan designed to enable a property to be purchased prior to the sale of another property.

Brownfield Land

Land that has previously been developed but is now vacant. Brownfield land can be challenging to develop because of contamination or other problems.

Building Control/Regulation

Ensuring buildings are constructed to a safe and legal standard. Local authorities carry out building control.

Building Insurance
Insurance policy required by lenders and designed to cover any structural damage to a property.

Building Survey
Detailed report on the construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Structural Survey.

Business rates

Business rates, or non-domestic rates, are a tax on the occupation of commercial property and other non-domestic property. The Local Government Finance Act 1988 introduced business rates in England, Wales and Scotland. Properties are assessed in a rating list with a rateable value. Rating Lists are created and maintained by the Valuation Office Agency, with a revaluation generally occurring every five years.

Buy to Let Mortgage
Mortgage designed for buying property that is intended to be rented to tenants for investment purposes.

Buyer
Person who is buying a property. Also known as the Purchaser.

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Abbreviations C:

CH - Central Heating

CML - Council Mortgage Lenders

COCR - Cash On Cash Return

CPO - Compulsory Purchase Order

CRM - Capital Repayment Mortgage

CT - Council Tax

C1 hotels

Hotels, boarding and guest houses where no significant element of care is provided (excludes hostels). There are no permitted changes.

C2 residential institutions

Residential care homes, hospitals, nursing homes, boarding schools, residential colleges and training centres. There are no permitted changes.

C2A secure residential institutions

Use for a provision of secure residential accommodation, including use as a prison, young offenders institution, detention centre, secure training centre, custody centre, short-term holding centre, secure hospital, secure local authority accommodation or use as a military barracks. There are no permitted changes.

C3 dwellinghouses

This class is in three parts: C3a - Use by a single person or a family (a couple, whether married or not, a person related to one another with members of the family of one of the couple to be treated as members of the family of the other), an employer and certain domestic employees (such as an au pair, nanny, nurse, governess, servant, chauffeur, gardener, secretary and personal assistant), a carer and the person receiving the care and a foster parent and foster child. There are no permitted changes. C3b - Up to six people living together as a single household and receiving care, e.g. supported housing schemes for people with learning disabilities or mental health problems. There are no permitted changes. C3c - Up to six people living together in a single household. This allows for groups that do not fall within the C4 HMO definition, e.g., a homeowner living with a lodger. There are no permitted changes.

C4 houses in multiple occupation

Small shared dwelling houses are occupied by between three and six unrelated individuals as their only or primary residence, who share basic amenities such as a kitchen or bathroom. The changes permitted are to C3.

Calderbank offer

In commercial property, a Calderbank offer is a written offer to settle, frequently concerning a rent review made "without prejudice" save as to costs. Either landlord or tenant can make a Calderbank offer. A Calderbank offer may only be referred to after the arbitrator, tribunal, or court has decided on the substantive matter. A Calderbank offer intends to protect a party against costs.

Call-in

The process of a central government minister taking a planning application out of the hands of a local planning authority and deciding on it themselves. Call-in is usually used in cases where the development is considered to be of national importance.

Capex

Capital expenditures (capex) are funds an organisation uses to acquire or upgrade physical assets, such as property or equipment.

Capital
Amount borrowed on which interest is calculated.

Cashflow

The cash receipts minus cash payments over a defined period.

Chain
Occurs where successive buyers and sellers are linked together and reliant upon one another to complete the transaction.

Chancel search

A search of the parish records to determine if the property owner is liable to contribute to the cost of repairing the chancel of a parish church.

Change of use

Change of use is the ability to change how land or buildings are used, either by a simple alteration like the use or through alterations and additions which modify the use. A change of use may also arise through a material intensification in the present use or by subtly altering the current use to a point where the changes amount to development. Certain types of change of use do not require planning permission—for example, a change of use from one type of shop to another. Specific changes are permissible between and within the use classes without the need for planning permission, subject to satisfying the appropriate criteria. Other uses are considered Sui Generis; they are uses on their own unrelated to other uses. A change of use from, say, a field to a caravan park would require planning permission, so would a change to a domestic garage to a business workshop, or house to a hotel etc. You should first consider the permitted development rights and then the Use Classes Order to determine whether an intended use change requires planning permission.

Character

The distinctive appearance of a place, such as its landscape, buildings or layout.

Charge
Security in the property relied upon by lenders when granting a mortgage.

Chartered Surveyor
Suitably qualified person employed to carry out a Building Survey and report on the condition of a property.

Clawback

Clawback is also known as overage. It is a right to receive future payments triggered by future events – for example, achieving planning permission for a change of use or development, practical completion of a development, or the sale or lease of the completed development.

Coal mining search

A search of areas where coal may lie underneath the surface to determine if there is any risk of subsidence due to coal mining.

Collateral
Property pledged as a guarantee for the repayment of a mortgage.

Commission
Fee payable to an estate agent, usually a percentage of the property price, for providing certain services in relation to the transaction.

Community Infrastructure Levy (CIL)

A charge levied by local authorities on developers to fund infrastructure projects, such as roads, schools and hospitals.

Community Strategy

A plan prepared by a local authority to improve the quality of life in their area.

Completion
Point at which legal transfer of property ownership passes from one party to another.

Compulsory purchase

Compulsory Purchase is an acquisition of interests in land or rights, generally by a public body such as a government department or local authority, which is authorised by an appropriate Compulsory Purchase Order. This process entitles the purchaser to acquire from an unwilling owner or occupier. This is most commonly related to proposals for future public works such as transport developments and can come from local authorities, Highways or Government agencies. Anyone with land acquired as part of a CPO is generally entitled to compensation. There are several rules and regulations governing the assessment of compensation, which relate to the value of the land and buildings and losses arising from disturbance, severance and injurious affection and in circumstances where no land is taken.

Condition precedent

A condition precedent is a lease covenant including conditions which must be strictly fulfilled to satisfy the requirements of the lease.

Condition of Sale
Terms defined in the contract and which determine the rights and duties of the buyer and seller.

Conditions (on a Planning Permission)

Requirements attached to planning permission that limits or direct how development is carried out.

Conservation Areas

Areas of land that have been designated for their particular architectural or historic interest. Conservation areas have unique planning controls in place to protect their character.

Contaminated land

Contaminated land contains substances in or under the ground that are actually or potentially hazardous to health or the environment. Britain has a long history of industrial production. Throughout the UK, there are numerous sites where land has become contaminated by human activities such as mining, industry, chemical and oil spills and waste disposal. Contamination can also occur naturally as a result of the geology of the area or through agricultural use.

Contents Insurance
Optional insurance policy designed to cover any loss or damage to possessions within the property.

Contract
Document outlining the terms agreed between the buyer and the seller and binding both parties to complete the sale/purchase transaction. Also known as Agreement.

Contract Race
Occurs when two or more parties attempt to purchase the same property and the Vendor will sell to the first party to exchange contracts.

Contracting out

Commercial property leases generally automatically qualify for the protection afforded to tenants at lease expiry by the Landlord & Tenant Act 1954. The parties to a lease may, by agreement, contract out of the Act. The main consequence of so doing is to remove the tenant's rights of renewal and eligibility for compensation in certain circumstances (e.g. landlord's redevelopment ). See also Security of Tenure.

Contractors test

The Contractor's Test is the method of valuation used for property where there is no open market, for example, a public building. It is also the method of valuation adopted 'as a last resort' for rating.

Conveyancer
Suitably qualified person, such as a solicitor or licensed conveyancer, who handles the legal and administrative process of transferring ownership of a property from one person to another.

Conveyancing
Legal work involved in transferring the ownership of a property from one person to another.

Core Strategy

A document that sets out the long-term vision for a local planning authority area.

County Councils

Local authorities responsible for the delivery of services in a county, such as education, social care and transport.

Covenant
Legal requirement incorporated in the Title requiring the owner to do, or not to do, something in relation to the property.

CPI (Consumer Price Index)

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. The CPI Index tracks price changes associated with the cost of living. In the commercial property market, leases are often granted with rent reviews that reference either the Consumer Prices Index or, more commonly, the Retail Prices Index (generally on an upwards-only basis). There are several differences between the CPI and RPI indices – the most well-known of which is in the area of mortgage payments, which are excluded from the CPI but included in the RPI. The CPI was first introduced in 1996, and in 2003, the Government announced that the UK inflation target would be based on the CPI, replacing the Retail Price Index for this purpose.

Curtilage

The land immediately surrounding a building and used for its benefits, such as a garden or yard.

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Abbreviations D:

DD - Due Diligence

DG - Double Glazing

DIP - Decision in Principle

DLA - Disability Living Allowance

DPC - Damp Proof Course

DPM - Damp Proof Membrane

DTV - Direct To Vendor

D1 non-residential institutions

Clinics, health centres, crèches, day nurseries, day centres, schools, art galleries (other than for sale or hire), museums, libraries, halls, places of worship, church halls, and law court. Non-residential education and training centres. There are no permitted changes.

D2 assembly and leisure

Cinemas, music and concert halls, bingo and dance halls (but not night clubs), swimming baths, skating rinks, gymnasiums or areas for indoor or outdoor sports and recreations (except for motor sports or where firearms are used). There are no permitted changes.

Decision Notice

A formal document that sets out the decision made by a planning authority on a planning application.

Declaration of Trust
Document that binds joint owners of a property with regards to the division of proceeds upon completion.

Decoration covenant

Where there is an obligation to decorate, the decoration covenants within the lease will state when the internal or external decoration is required. It may go on to define specific details, such as how many coats of paint are to be applied and when the decorations are to be applied.

Deed
Legal documents proving ownership of a property. Also known as Title Deeds.

Demise

Demised premises are the extent of the premises included within a lease and may consist of land or other facilities. For example, when an office block is let under a written lease, in the lease, the office block might be referred to as the demised premises.

Deposit
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Down Payment.

Depreciation

Depreciation is a method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. Consumption includes the wearing out, using up or other reduction in the useful economic life of a tangible fixed asset, whether from use, the passing of time or obsolescence through either technological changes or demand for goods and services produced by the asset.

Design and access statement

A document submitted with a planning application to explain the design and accessibility of the proposed development.

Detached
Property that stands alone and has no shared walls with an adjoining property.

Determination

The generic term for the decision of a Third Party surveyor appointed under a Dispute Resolution clause to make a binding decision to resolve a dispute between the parties to a lease. Most commonly, Independent Expert Determination of a rent review (similar to an Arbitration Award) can include a service charge, insurance and adjoining owner/occupier clauses.

Development
Property that is either newly built or has been recently refurbished.

Development Control/Management

The process of determining planning applications and managing development in a local area.

Dilapidations

The term 'dilapidations' refers to the breaches of a tenant's lease covenants regarding repair, reinstatement of alterations, and redecoration. A landlord can raise it during the lease term (interim dilapidations) or, more commonly, at lease expiry (terminal dilapidations). Any resulting claim for damages is capped at the Diminution in Value of the landlord's interest under s18 of the Landlord and Tenant Act 1927 regarding the repair and similar principles at common law regarding reinstatement and redecoration.

Dilapidations protocol

There is a formal pre-action protocol for damages claims concerning the physical state of a commercial property, generally called the 'dilapidations protocol'. This was formally adopted under the Civil Procedure Rules in January 2012.

Diminution Valuation

A Diminution Valuation is a specialist's report prepared by an experienced Valuer that considers Section 18 of the Landlord and Tenant Act 1927. Section 18(1) provides that the damages for breach of the repairing covenant may not exceed the diminution in value of the landlord's reversion caused by violations of repair. The common law practice is now to produce a single diminution valuation reflecting all covenant breaches (i.e., reinstatement, etc.).

Disbursements
Third party costs relating to transaction paid out by solicitor to cover items such as Stamp Duty, Land Registry, Local Authorities, etc.

Discharge
Termination of a mortgage obligation when no further payments are required.

Discounted cashflow

An analysis technique is used to appraise, for example, investment and development projects, whereby future income streams are discounted, accounting for the time cost of money, to arrive at a present value to gauge performance and project viability.

Disrepair

The assessment of the property's condition highlights areas where repair is required. Many tenants will have obligations to repair their premises. Failure to do so is commonly referred to as disrepair. The state of repair is usually disregarded in assessing rating, although significant dilapidation can lead to removal from liability.

Down Payment
Amount of money paid by the buyer to the seller on exchange of contracts in order to secure a property. Also known as Deposit.

Draft Contract
Early version of the contract, which is then edited by the acting solicitors.

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Abbreviations E:

EA - Estate Agent

EDC - Exchange with a Delayed Completion

EPC - Energy Performance Certificate

ERC - Early Repayment Charges

Early Redemption Charge
Financial penalty charged by some lenders if the borrower terminates a mortgage early.

Easement
Right granted to someone other than the owner of a property such as a right of way over land or a right to maintain services under land.

Empty Rates

Following the introduction of new legislation in 2008, rates have been applied in full to empty properties (with some minor exceptions).

Endorsement

This is the parties' signature of their documents being the Landlord's Schedule of Dilapidations and the Tenant's Response.

Endowment Mortgage
Mortgage designed for monthly repayments to be paid into an endowment (life assurance) policy, which is used to pay off the loan at the end of the term.

Energy Act (The)

The Energy Act (2011) focuses on improving the energy efficiency of buildings and includes three major elements in the Green Deal, Energy Company Obligation and Private Rented Sector regulation. The Act makes it unlawful to let premises that do not meet minimum energy efficiency standards from April 2018 (set as a minimum EPC rating of E), making it illegal for landlords to rent buildings with an F or G EPC rating until specific energy efficiency improvements are made. While the energy efficiency improvements required by the Act, exceptions to the rule and links to the Green Deal are yet to be confirmed, the direction of travel has been clearly defined.

Energy Performance Certificates (EPC)

Energy Performance Certificates (EPCs) are required for buildings sold, built or let. The certificate identifies how energy efficient a building is by providing a rating from G (least efficient) to A (most efficient). It is accompanied by a report providing recommendations for potential improvements to the building and indicative costs, payback periods and carbon impacts.

Enforcement Notice

A notice served by a local planning authority on the property owner who has breached planning control.

Engrossment
Final copy of a document prepared by a solicitor for signing by the parties.

Environmental Impact Assessment (EIA) and Environmental Statement

An assessment of the environmental impacts of a proposed development. EIAs are required for certain types of development, such as major infrastructure projects.

Environmental Search

Environmental searches are provided by companies that maintain detailed information about previous land uses within the vicinity of a property. These searches also include information on flood, ground stability, radon, planning, energy and transportation in order to provide comprehensive environmental checks for a residential property.

Equity
Owner's financial interest in a property, calculated as the difference between the market value of a property and the balance outstanding on the mortgage.

Estate Agent
Property professional who markets property on behalf of sellers and who charges a fee, usually a percentage of the selling price.

Estate charge

An estate charge is that part of the tenant's service charge liability relating to the maintenance of the estate on which a commercial property is situated. Includes, for example, landscaping, maintenance and lighting of estate roads, as well as security.

Estoppel

Estoppel is the legal principle whereby one party is held to have varied its rights by its actions and, in doing so, has given another party sufficient encouragement to act to its detriment contrary to any existing relationship.

Excess
Fixed initial sum that the insured party must pay on any insurance claim.

Exchange of Contracts
Point at which signed contracts confirming the intention to transfer ownership between buyer and seller are physically exchanged and the parties become legally bound by the terms.

Exit yield

The yield that is applied to the projected income on the assumed sale date of the investment

Expert determination

Expert determination in the UK involves an independent third party acting as an expert deciding a dispute using their own knowledge and experience. This is a common way of resolving rent review and valuation disputes. It is considered quicker, cheaper than arbitration, and particularly suitable for specialist property disputes.

Expert witness

An expert witness is required to assist the court or tribunal in understanding complex technical matters on which their decision might be based. Experience in the subject matter of the dispute is critical, and the choice of an expert witness can make or break a case. Expert witnesses appear in most property disputes, whether before the courts or arbitrators. While appointed by one of the parties, they have an overriding obligation of impartiality to the court or tribunal.

External valuer

A valuer who, together with any associates, has no material links with the client, an agent acting on behalf of the client, or the subject of the assignment.

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Abbreviations F:

FENSA - Fenestration Self Assessment Scheme

FH - Freehold

FLEEA - Fire, Lightning, Earthquake, Explosion, Aircraft (Insurance)

FMV - Fair Market Value

FR - Fixed Rate

FTB - First Time Buyer

FURN - Furnished

Failed Valuation Survey
When a lender turns down a mortgage application as a result of the surveyor's report.

Final schedule of dilapidations

The final schedule of dilapidations is served after the lease has ended. The timescales for dealing with the dilapidations process are defined under the dilapidations protocol and RICS Dilapidations Guidance Notes.

First Time Buyer
Buyers who have not previously purchased a property.

Fit out costs

A tenant usually incurs fit-out costs before being able to occupy new accommodation. Fit-outs will often include everything from installing cabling to purchasing furniture.

Five yearly revaluations

Rateable values are generally subject to a revaluation every five years. This ensures that relative market changes between locations and property types are adequately reflected in the rating list and can remain relevant.

Fixed and minimum uplift rents

Rent is subject to fixed uplifts at an agreed level on agreed dates stipulated within the lease, or rent is subject to a contracted minimum uplift at the specified review date (often at annual or five-yearly intervals).

Fixed Rate Mortgage
Mortgage with interest rates initially 'fixed' for a defined period.

Fixtures & Fittings
Those non-structural items in a property that should be listed to be included in a sale.

Flying Freehold
Where part of a freehold property overhangs a different freehold property or land.

Forfeiture

When a business tenant is in rent arrears or is in serious breach of the lease terms, the commercial landlord will, in most cases, have the right to forfeit - the right to end the tenancy summarily. The landlord must comply with section 146(1) of the Law of Property Act 1925. There is no automatic right to forfeit a lease unless the lease contains specific provisions by way of a clause setting out the grounds on which the landlord may forfeit. The landlord's actions must indicate that he intends to end the lease, so efforts to the contrary, like accepting rent, will remove the right to forfeit. There are two main methods of doing this: (1) by peaceable re-entry to the premises or (2) by issuing court proceedings for possession.

Freehold

The most superior legal title to the ownership of premises - legally referred to as "fee simple absolute in possession" - as opposed to long leasehold (or ground lease), which will often run for 100 years or more, and leasehold (usually the occupational lease interest). For an estate to be a freehold, it must possess two qualities: immobility (property must be land or some interest issuing out of or annexed to land), and ownership of it must be of an indeterminate duration.

Freeholder

The owner of the freehold interest.

FRI (Full Repairing and Insuring)

FRI is a term used to describe a lease where the tenant is responsible for all repairs and insuring. However, the term also applies to the liability for payment of these costs, known as effective FRI. FRI leases, therefore, include those where the landlord pays for external repairs and recovers the cost via service charge or contribution to "shared" expenditure. Also, where, as is most common, the landlord maintains the insurance and recovers the cost of the premium from the tenant, usually as further rent.

Full Structural Survey

Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor.

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Abbreviations G:

GCH - Gas Central Heating

GDN - Garden

GDV - Gross Development Value

GF - Ground Floor

GFCH - Gas Fired Central Heating

GP - Gross Profit

GR / NR - Gross Return / Net Return

Gazumping
Where the seller has agreed an offer in principle on a property but then subsequently accepts a higher offer from another party.

Gazundering
Where the buyer has made an offer that has been accepted but then subsequently reduces the offer immediately prior to exchange of contracts.

General Permitted Development Order (GPDO)

A set of regulations allowing certain development types to be carried out without planning permission.

General Rate Act 1967

The General Rate Act 1967 was repealed and replaced by the Local Government Finance Act 1988 but still carries many of the principles of rating law in use today.

Green Belt

An area of land that is designated to be kept permanently open or largely undeveloped. Green belts are designed to prevent urban sprawl and protect the countryside.

Greenfield land

Land that has not been previously developed. It is often used for agriculture or other rural purposes.

Gross income

The total current income receivable from a property investment before deductions are allowed.

Gross internal area

Gross internal area (GIA) is the interior floor area of a building measured to the inner face of the external walls. It is most commonly used in the industrial / warehouse sector, food stores, and retail warehousing.

Ground lease

This is usually a long lease, granted at a ground rent but subject to an initial premium payment. A ground lease can vary from 30 years up to 999 years.

Ground Rent
Fee paid annually by the leaseholder to the freeholder in order to occupy the land on which a property stands.

Guarantor

Person responsible for repaying a debt if the borrower defaults as required by some lenders.

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Abbreviations H:

HA - Housing Authority

HB - Housing Benefit

HHSRS - Housing Health and Safety Rating System

HMO - House of Multiple Occupancy

HPI - House Price Index

Habitable room

A room used for sleeping, cooking, living, or eating. Bathrooms, toilets, service rooms, corridors, hallways, utility rooms, and similar spaces are not considered habitable.

Headline rent

A headline rent is rent paid under a lease after the end of any rent-free periods or any period of reduced rent. It creates an artificially inflated rent by ignoring the rent-free period, period of reduced rent or any other concessions the landlord may have given to the tenant in return for a higher headline rate. Headline rent is most commonly associated with open market lettings but increasingly at lease renewal and lease re-gearing / restructuring. Headline rent usually also forms the benchmark for any "upward only" rent review in the lease.

Heads of terms

A heads of terms agreement identifies and highlights the requirements of both the transacting parties in a property deal. Its advantage is that both parties will fully understand what they are subject to and reduce or abolish any misunderstandings from each party. The heads of terms will form the basis of the contract and be forwarded to the parties' solicitors to draft the agreement or lease.

Hereditament

The unit of assessment for rating is defined in statute merely as a building which is or could be subject to a rate. Correctly understanding what comprises a hereditament relies on case law precedent developed over 400 years. Any decision on rateable occupation requires the existence of a hereditament, that is, a physical unit capable of use or occupation or a 'right' to advertise, the latter being expressly mentioned in the main enabling act, the Local Government Finance Act, 1988.

Hold period

The period over which the investment is assumed to be held.

Home Condition Report
An optional part of a Home Information Pack (HIP) providing an objective report on the condition of a property.

Home Information Pack
Compulsory information pack compiled by the seller prior to marketing a property for sale, containing specified information relating to a property.

Homebuyer's Report
Standard report conducted by a surveyor on behalf of a buyer to assess value and condition of a property, highlighting major defects.

House Price Index
Statistical method of representing changes in house prices over time.

Hurdle rate of return

The target return or IRR from an investment.

Hypothetical lease terms

The basis of valuation under a rent review clause. In most commercial property Leases, rent is reviewed periodically to an open Market rent level - the rent review clause will prescribe the exact terms to be assumed and matters to be disregarded in a hypothetical letting of the subject property at the review/valuation date. Usually based on the terms of the actual lease, but can vary, e.g. length of time, whether break options are imported/included, assumptions as to permitted user etc.

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Abbreviations I:

IFA - Independent Financial Advisor

IHT - Inheritance Tax

IO - Interest-only: A mortgage where capital debt is held off until the end of the term. Interest payments to service the debt are made at regular periods.

IRR - Internal Rate Retention / Internal Rate Of Return

Improvement Grant
Grant made by a local authority towards the cost of repairing or improving a property.

Incentive

An incentive is a payment to encourage a tenant to take on a new leasehold contract when a lease is granted or assigned. A typical example is where a landlord pays a tenant a sum of money to contribute to the cost of a tenant's fit-out or allows a rent-free period.

Independent expert determination

Expert determination in the UK involves an independent third party acting as an expert deciding a dispute using their own knowledge and experience. This is a common way of resolving rent review and valuation disputes. It is considered quicker, cheaper than arbitration, and particularly suitable for specialist property disputes.

Independent Financial Advisor (IFA)
Qualified person using specialised knowledge of the marketplace to select financial products to best suit the needs of their client.

Indexation

The practice of linking the review of the tenant's payments under the lease to a published index, most commonly the Retail Price Index (RPI) and the Consumer Price Index (CPI). Most commonly associated with service charge payments, annual adjustment of service charge caps and rent reviews.

Individual Savings Account (ISA) Mortgage
Mortgage designed for monthly repayments to be paid into an Individual Savings Account, which is used to pay off the loan at the end of the term.

Informal hearing

A less formal type of hearing held in front of a planning inspector. This type of hearing is often used for smaller planning applications.

Instruction
Engagement by a property owner of an estate agent to market the property.

Insurance
Protection against a specific loss over a period of time secured by payment of a regular premium.

Interest Charge
Fee charged by a lender on the borrower, calculated as a percentage of the amount borrowed.

Interest Only Mortgage
Mortgage where only the interest charges are repaid initially. Monthly instalments are invested by the buyer and repaid in full at the end of the term.

Interim rent

The rent is payable during a holding period while a new lease is negotiated or completed under the Landlord and Tenant Act 1954. If the lease is renewed, the revised rent becomes the interim rent, although either party can apply to the court for a variation to this presumption on limited grounds.

Interim schedule of dilapidations

The interim schedule of dilapidations - served during the lease term, at any time after lease commencement. It is usual for the provisional schedule of dilapidations to be served before the last 18 months of the lease. An interim schedule intends to identify breaches of the lease and necessary works to remedy the breach within a set time frame.

Internal Rate of Return (IRR)

The interest rate at which all future cash flows must be discounted so that the net present value of those cash flows, including the initial investment, should be equal to zero.

Internal Repairing Lease (IRL)

A lease where the landlord retains responsibility for and bears the cost of external repairs. It differs from the more common Full Repairing and Insuring (FRI) lease. It commonly results in a higher rent reflecting the tenant's lower obligations regarding annual expenditure on repairs.

Investment property

Property that is held as an investment with the primary purpose of yielding a return over the life of the holding.

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Abbreviations J:

JV - Joint Venture

JVP - Joint Venture Partner

Jervis v Harris clause

A Jervis v Harris clause within a lease allows a landlord to re-enter the property to remedy breaches of the lease the tenant has failed to rectify after an express notice period. The landlord recovers the cost of repairs as a debt, thus removing some of the defences available to the tenant under dilapidated claims.

Joint Agents
Two estate agents jointly instructed by a seller to market a property.

Joint sole expert

A joint sole expert is an expert witness appointed jointly by the parties or the court to reduce the cost of litigation by removing the ability of each party to appoint its own expert. The joint sole expert reports to the court and may be questioned by each party. Apart from saving costs, the main advantage is removing the adversarial approach taken by some expert witnesses appointed by parties.

Joint Tenants
Equal holding of a property between two or more persons. If one party dies, their share passes to the survivor(s).

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Abbreviations L:

LH - Leasehold

LHA - Local Housing Allowance

LIBOR - London Interbank Offered Rate

LL - Landlord

LO - Lease Option

LTB/L2B - Lease to Buy

LTL/L2L - Lease to Let (Same as R2R)

Land Registry
Government department responsible for recording ownership of land in England and Wales. Searches will be requested from the Land Registry by conveyancers as part of any property transaction.

Land Registry Fees
Set fee paid to Land Registry to register ownership of a property.

Landlord and Tenant Act

These are the statutory frameworks for the occupation of buildings and/or land where a landlord and tenant relationship exists. The principal legislation is the Landlord and Tenant Act 1954 (as amended), which confers Security of Tenure and the right to a renewal lease, on specified grounds, on the tenant, and the Landlord and Tenant Act 1927, which relates to the treatment of tenant's improvements and the limitations on a landlord's claim in damages for dilapidations.

Landlord’s consent

Many clauses in commercial leases are "permissive" and allow the tenant to implement changes or alterations to the property or its occupation (for example, alienation or user). Usually, however, the landlord's formal consent is required, and the lease will contain provisions governing how this is to be obtained and documented. These clauses also usually provide the landlord's consent not to be unreasonably withheld or delayed. If not, provisos to this effect are imported by statute in relation to alterations and alienation, but not the user.

Lands Chamber

This is the judicial forum available to hear appeals from decisions of the lower court for rating, the Valuation Tribunal (VT). The ratepayer, the Valuation Officer or any other 'interested party' can appeal to the Lands Chamber, where they are represented at VT.

Lease
Possession of a property owned by another party for a specified time period. Also known as Tenancy.

Lease Agreement
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Tenancy Agreement.

Lease expiry/renewal

The Landlord & Tenant Act 1954 limits how a business tenancy may end. Thus, a tenancy that falls within the Act's provisions will only end if it is terminated under its provisions.

Lease length

Lease length refers to the length of the lease term. It will vary depending on the tenant's particular requirements and the landlord's investment strategy. In broad terms, the landlord will generally look for a longer lease of 15-25 years, whereas tenants increasingly demand more flexibility and are likely to look for shorter terms of 5-10 years.

Lease regear

A lease regear is a relatively recent term used to describe the renegotiation of a lease during the term. Often linked to another lease event, for example, a break option or rent review, but also applies to early renewal, when the parties renegotiate during the contractual term. Lease regears are most often linked to an extension of the tenant's commitment to the premises, either by extension of term length or removal of a break option, in exchange for a re-basing of the rent to current open market value and/or incentives, e.g. a rent-free period.

Lease security

They are also known as "Security of Tenure". Unless the parties have "Contracted Out" of the Landlord and Tenant Act 1954, tenants of commercial premises have the right to remain in occupation and to a new tenancy on terms proscribed under the L&TA legislation.

Lease surrender

A lease surrender is an agreement whereby the parties bring a lease to an end other than by contractual expiry or the exercise of a break option. Frequently involves negotiation of a surrender premium by one party to the other but may rely on mutually beneficial release, e.g. early termination of a lease where the tenant is no longer in occupation and the landlord can re-let or refurbish/redevelop early.

Lease term

A lease cannot be open-ended. The lease term is the period the lease runs for (as a "term of years" or "length of term") under the lease.

Leasehold
Ownership and right to occupy a property by way of a lease agreement for a given period of time subject to an annual payment of rent to the owner of the freehold.

Legal costs

These are the lawyer's costs incurred by both a purchaser and vendor of a property or in connection with the sale or grant of a new lease by a landlord and a tenant. Such costs can include conveyancing fees, litigation advice, counsel's opinion, stamp duty, local authority search fees, bank transfer and court expenses, and other disbursements and VAT.

Lender
Institution that lends funds in order to assist the borrower with a property purchase.

Lender's Legal Fees
Fees incurred by the lender in arranging a mortgage and that are passed on to the borrower.

Lessee
Someone who holds the lease on a property. Also known as Tenant.

Lessor
Someone who grants a Lease on a property. Also known as Landlord.

Letting agent

The agent (usually a surveyor) acts for the party seeking to create a lease by offering the premises "to let" in the open market. Refers to the landlord's surveyor in a transaction, which includes those acting for a tenant seeking to sub-let, who then becomes an intermediate landlord. If represented, the tenant's surveyor in any transaction is often referred to as the "acquiring agent".

Licence

An authority to do something that would otherwise be inoperative, wrongful or illegal. This may be used, for example, to permit the occupation of land and buildings, allow a tenant to carry out alterations, or assign or sub-let.

Licence for alterations

Licence for alterations will define the works the landlord has agreed upon for the tenant to undertake. It will include additional covenants for the tenant to comply with in undertaking the works and may consist of reinstating the works at lease expiry. The Licence may also include provisions for the landlord to notify the tenant to reinstate such works, including a timescale before lease expiry.

Licence to alter

A legal document "licensing" the tenant to carry out alterations to the premises. Usually relates to a specific, approved Schedule of Works for which the landlord's consent has been obtained. Commonly time-limited and also addresses the tenant's reinstatement obligations at lease expiry and how the alterations are to be treated at rent review.

Lien
Legal right or claim against a property as security for a debt.

Lifetime cost

The total of all costs relating to the holding of a property over its expected life, including the amount paid to acquire it. These extra costs include maintenance spending, business rates and utilities consumption. Lifetime cost analysis may reveal that a modern building with higher headline rents is cheaper than a secondary property due to higher running costs.

Liquidity

The ability to convert an asset into cash within a required period.

Listed Building
Building that has been registered as being of special interest and has preservation orders on it.

Listed building consent

Permission to demolish, alter, or extend a listed building.

Loan to Value (LTV)
Percentage indicating the ratio of a mortgage loan on a property to its market value.

Loan valuations

A lender will typically require a loan valuation before lending on a particular property purchase to ensure that the asset's value meets the security and equity criteria of the loan contract. The lender will generally appoint a suitably qualified surveyor. In the case of a surveyor that is a member of the Royal Institution of Chartered Surveyors (RICS), the member must prepare the loan valuation in accordance with the RICS Appraisal and Valuation Manual. This publication sets out various practice statements, and guidance notes that the surveyor should adopt to ensure consistency of approach and quality assurances for the lender.

Local Authority Search
Enquiries made to the local council regarding any future development issues that might affect a property and/or the surrounding area.

Local development documents (LDDs)

A collection of documents used to plan an area's future development. LDDs include development plan documents and supplementary planning documents.

Local development framework (LDF)

A non-statutory term used to describe the collection of local development documents for an area.

Local development order

An order made by a local planning authority to grant planning permission for a specific development or class of development.

Local development scheme

A plan that is used to schedule the preparation of local development documents.

Local enterprise partnership

A body established by the Government to promote economic growth in a particular area.

Local plan

A plan used to set out the future development of a particular area. Local planning authorities prepare local plans in consultation with the community.

Local planning authority

The local authority responsible for planning in a particular area.

Local search

This search is carried out with the Local Authority where the house is situated. It shows entries dealing with the property only and should you have any queries regarding neighbouring land you will need to approach the Local Authority direct.

Loss of rent

Loss of rent is the term given to the rent a landlord has lost due to the tenant's breaches of the lease. The loss of rent may relate to the time it takes for the landlord to remedy the tenant's breaches of the lease after the lease expiry. Some leases include provisions for this to be paid in any event.

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Maintenance Charge
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Service Charge.

Maisonette
Property that comprises a portion of a larger building, usually arranged over more than one floor with its own private entrance.

Managing agent

The managing agent is someone who works for or represents the property owner. Duties include collecting rent and monitoring tenant and landlord compliance with their respective lease covenants.

Market Rent (MR)

Market Rent (MR) is the estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Market Value (MV)

Market Value (MV) is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arms-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Market Value with existing use

The definition of market value with existing use disregards potential alternative uses and other characteristics or development.

Material change in circumstances

A Material Change in Circumstances (MCC) is a physical change, defined under Schedule 6 of the Local Government Finance Act, that can be cited as a reason to alter any existing assessment in the rating list and which may lead to a change in Rateable Value following a ratepayer proposal or a Valuation Office Notice. An MCC gives rise to fresh/specific grounds of appeal against an entry in the Rating List. Examples would include temporary disruption arising from building or road works in the vicinity or a permanent change to the accessibility of the premises. For example, a pedestrianisation scheme, resulting in a material change to the physical parameters determining their rental (and therefore Rateable) value.

Material compliance

Material compliance is a legal phrase used to describe the extent to which the conditions in a lease must be met.

Material consideratiosn

A matter that should be taken into account in deciding a planning application or on an appeal against a planning decision.

Mediation

Mediation is an informal method of resolving disputes in which an independent mediator works with the parties to help them resolve their dispute. The decision they reach is documented formally and then becomes binding upon them. Mediation is encouraged by the courts and has a very high success rate. It is particularly suitable for landlord and tenant, boundary and other disputes where the parties have an ongoing relationship to preserve.

Memorandum of review

A memorandum of review (or rent review memorandum) documents the outcome of the rent review process, whether the review is settled by agreement or arbitration / independent expert determination. It is a simple legal document identifying the lease, the relevant review provisions and the original and current parties, which records the amount and effective date of any revised rent. It may either be annexed to the lease or, more typically, retained with each party's deed packet as a separate document.

Mortgage
Long-term loan used to fund the purchase of a property where the property is held as security.

Mortgage Agreement in Principle (MAP)
Lender's expression of intent to provide funding subject to certain conditions being met.

Mortgage Deed
Document containing the terms and conditions of a loan secured on a property.

Mortgagee
The lender of a mortgage.

Mortgage Indemnity Guarantee (MIG)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Premium (MIP) and Additional Security Fee.

Mortgage Indemnity Premium (MIP)
Fee charged by some lenders to protect them against the borrower defaulting. Also known as Mortgage Indemnity Guarantee (MIG) and Additional Security Fee.

Mortgage Rate
Standard variable interest rate quoted by all mortgage lenders. This varies in accordance with the Bank of England base rate.

Mortgage Term
Period of time over which a mortgage will be repaid.

Mortgage Valuation
Report commissioned by the lender to assess property value and detemrine maximum amount to be loaned on the security of a property.

Mortgagor
The borrower of a mortgage.

Multiple Agency

Where two or more estate agents are instructed by a seller to market a property. Only the agent who introduces a successful purchaser is paid.

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Abbreviations N:

NAEA - National Association of Estate Agents

NALS - National Association of Letting Agents

NHBC - National House Building Council Scheme

NLA - National Landlords Association

NP - Net Profit

N/J formula

This is the formula used by the billing authority where an assessment has been reduced (N) after the compiled list date (J) and where a property is affected by transitional relief. In these circumstances, ratepayers must get the date of the decrease right, or matters could prove costly.

National park

An area of land designated for its natural beauty, wildlife, and cultural heritage. National parks are protected by law and have unique planning controls in place.

National Planning Policy Framework (NPPF)

A document that sets out the Government's planning policies for England. The NPPF is used by local planning authorities to decide on planning applications.

Negative Equity
Occurs when the market value of a property falls to a value less than the mortgage loan balance.

Neighbourhood development order (NDO)

A type of planning permission a local community can grant. NDOs allow communities to decide the development of their own area.

Neighbourhood Plan

A plan prepared by a local community to guide the development of their area. Neighbourhood plans are subject to approval by the local planning authority.

Net effective rent

The equivalent rent that would be payable after all incentives (for example capital contributions and rent free periods) are taken into consideration. This calculation is used by the VOA to determine the actual Rateable Value. It is also used in lease negotiations to identify the appropriate level of rent.

Net income

The net income from a property investment after deducting ground rent and non-recoverable expenditure.

Net initial yield (NIY)

The net initial yield is the initial net income at the date of purchase, expressed as a percentage of the gross purchase price, including the purchase costs.

Net internal area

The 'useable' measured internal floor area of a building, which is measured to the internal face of external walls, by excluding 'non-useable' but ancillary/essential areas such as stairwells, WCs and permanent vital access routes. Most commonly used in the office and retail sectors.

Net present value

The sum of the discounted cash flow of a project, with all tranches of net income discounted to a present value at a rate derived from the investor's target rate of return or the cost of capital.

Net yield

Net yield considers the assumed or actual costs associated with purchasing the property, providing a more accurate position regarding the relationship between the rental income and the total capital investment.

NHBC (National House Building Council) Scheme

A guarantee offered on some newly built homes for structural defects occurring within a specified time after construction.

Nil increase

Shorthand term refers to the outcome of an 'upward-only' rent review, where the current open market rental value is at or below the level of the passing rent, and the review is documented at the same (nil increase) level.

Non-material amendment

A minor change to existing planning permission. Non-material amendments do not require a new planning application.

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Abbreviations O:

OCH - Oil Central Heating

OIEO - Offers In Excess Of

OIRO - Offers In The Region Of

OMV - Open Market Value

OO - Owner Occupier

OPM - Other People’s Money: Using other people’s money to purchase property

OTO - Open to Offers

O’May rules

A landmark lease renewal case under the Landlord and Tenant Act 1954 - O'May v City of London Real Property Co Ltd (1982). Frequently referred to in lease renewal negotiations where one party, usually the landlord, seeks to vary the terms of the renewal lease to reflect the 'modernisation' of the lease covenants as the result of changed market practice since the grant of the original lease. In summary, the case held that the tenant's statutory protection under the 1954 Act means that the starting point in any renewal is a lease on substantially the same terms and, in effect, imposes a 'presumption against' change. The party proposing the change must prove that it is 'fair and reasonable in all circumstances' (including the existing covenants and not merely current open market practice) and that the tenant can be compensated for the proposed change via an adjustment in the rent.

Offer
Indication from a potential buyer of a willingness to purchase a property at an indicated price. An offer is not legally binding in England and Wales and can be withdrawn or changed at any time prior to exchange of contracts.

Official copy of register of title and plan
This is an up to date copy of the ‘title deed’ and boundary plan to the property which is obtained from the Land Registry. It evidences who the registered owner of the property is.

Ombudsman
Independent body responsible for the investigation of complaints on behalf of consumers.

Onerous lease provisions

Some of the tenant's covenants in a lease may impose restrictions on its occupation of the premises which, when assessing the property's rental value at rent review, warrant an adjustment in the rent. If the premises were offered in the open market on the same tenancy terms (and a discount could be expected in any open market bids) to reflect the onerous lease provisions in comparison to the 'market norm' for the class of property concerned, a similar discount might be applied to the rent review.

Open Market Rent

Open market rent is the most common basis of valuation at rent review (also known as open market rental value - OMRV). It is commonly defined as the rent at which the premises might reasonably be expected to let, in the open market, at the review date, on the terms of the hypothetical lease. Typically, this is framed with primary reference to the terms and covenants of the actual lease of the premises. However, this is not always the case (for example, in relation to the assumed length of the term), and due diligence is essential in understanding the particular definition of open market rent in any review clause.

Open Market Rent Review

A rent review to open market rent.

Open Market Value
Price that a property would likely achieve if it were available for sale.

Outline application

A planning application that only includes some of the details of the proposed development. Outline applications are used to get permission for the principle of development, with further information being decided later.

Overage

Overage is also known as a clawback. It is a right to receive future payments triggered by future events – for example, achieving planning permission for a change of use or development, practical completion of a development, or the sale or lease of the completed development.

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Abbreviations P:

PA - Per Annum

PCM - Per Calendar Month

POA - Price on Application

PP - Planning Permission

PP - Purchase Price

PW - Per Week

PACT

Professional Arbitration on Court Terms (PACT) is available to the parties to a disputed lease renewal, by agreement, as an alternative to a Court determination's expense and procedural complexity. Usually only adopted when all other terms of the renewal lease have been agreed upon, and the parties feel it more appropriate to have the question of rent determined by a surveyor who is an expert in the field/class of property concerned than a judge.

Parish Plans

A community planning tool that helps communities to articulate issues of concern to them. Parish Plans can result in an action plan that can be used to inform and endorse the Parish Council's role in acting on behalf of and representing the community.

Parish/Town Council

A local government body representing a civil parish. Parish/Town Councils can make representations on behalf of their community to other organisations, such as local planning authorities. They can also prepare Parish Plans and neighbourhood plans.

Part 36 offer

Part 36 offers are offers to settle a claim and can be made by both a claimant and defendant in a legal dispute. They relate to this section of the Civil Procedure Rules which govern court action. Part 36 offers are usually made 'without prejudice except as to costs' and are generally made by solicitors as they have to comply with the strict requirements of Part 36 rules of court to be effective.

Party wall surveyor

A party wall surveyor is appointed concerning the condition of, or work to, a party wall. This arises when works are planned on adjoining property and impinge on the party wall. The surveyor is independent; they produce a set of guidelines regarding the work and its progress, a record of the condition of the party wall, photographs and any relevant drawings. This is a statutory process with the advantage of removing partiality from the process and resolving what would otherwise be an ongoing dispute between adjoining owners.

Peppercorn Rent
Nominal ground rent usually paid annually and of trivial amount.

Permitted Development

A type of planning permission that allows certain limited forms of development to be carried out without the need to make a planning application. Local planning authorities can remove permitted development rights through planning conditions or Article 4 Directions.

Pied-a-Terre
Property kept for temporary or occasional occupation.

Planning Aid England (PAE)

An organisation that provides all callers free independent, professional planning advice. Community groups and individuals who are then eligible may receive further professional guidance through a network of professional volunteers. PAE also works with communities to help them understand and play a role in the planning process and Neighbourhood Planning. PAE is an independent source of information.

Planning Committee

A group of elected councillors who decide on planning applications. Planning committees comprise a mix of elected councillors from different political parties.

Planning Condition

A condition imposed on a grant of planning permission. Planning conditions are usually used to control the impact of development, such as opening hours in the case of a shop, bar or restaurant.

Planning Consultant

A company that specialises in providing advice on planning matters. Planning consultants can offer various services, such as helping prepare planning applications, representing clients at planning hearings and advising on planning law.

Planning Inspectorate

An executive agency of the Department for Communities and Local Government. The Planning Inspectorate is responsible for determining planning appeals and other related appeals, such as enforcement, listed buildings and the public examination of local development plans.

Planning Obligations

A legally enforceable agreement entered into under section 106 of the Town and Country Planning Act 1990 to mitigate the impacts of a development proposal that cannot be controlled through the imposition of planning conditions. Planning obligations can take various forms, such as financial contributions, the provision of infrastructure or the creation of jobs.

Preliminary Enquiries
Initial set of questions regarding a property that the seller must answer prior to exchange of contracts.

Premium

A premium is a price paid for a lease in the open market, where one tenant assigns interest to another replacement tenant. See also surrender premium and reverse premium.

Premium (insurance)
Amount payable on an insurance policy, usually paid monthly.

Previously Developed Land (Brownfield land)

Land previously developed for a permanent structure, including the curtilage of the developed land and any associated fixed surface infrastructure. Brownfield land excludes land that has been or is occupied by agricultural or forestry buildings, land that has been developed for minerals extraction or waste disposal by landfill purposes where provision for restoration has been made through development control procedures, land in built-up areas such as private residential gardens, parks, recreation grounds and allotments, and land that was previously developed but where the remains of the permanent structure or fixed surface structure have blended into the landscape in the process of time.

Prime investment

Property investment is considered the best in class and location, determined by the occupier and investor sentiment. Typically a modern or recently refurbished building, finished to a high specification, well-situated in a commercially strong location and let to a strong covenant.

Principal
Amount borrowed from a lender on which interest is calculated.

Private treaty

This is the most common form of buying/selling a property, involving a binding private contract for sale between the parties. A sale of a property or investment opportunity by a 'private treaty' allows the vendor more control over the sale process and any specific conditions that apply. However, the completion of the sale can take longer than other routes, such as t auction.

Privity of contract

The legal doctrine whereby the contractual relationship between the original parties to a lease (i.e. property contract) remains in place, notwithstanding any assignment(s) of the tenant's interest.

Property information form

This standard form which is completed by the Seller sets out what he or she knows about the property and forms part of the contract package.

Proposal (business rates)

An 'interested party' (usually the owner or occupier) is permitted to propose to alter the rating list where they are dissatisfied with the level of assessment or any other part of their entry within the list. The grounds of a valid proposal will define the extent of any case brought before a hearing and must be carefully served. A proposal can usually be made within the term of the rating list, and where the matter remains unresolved, it becomes an appeal and may proceed before the valuation tribunal for a hearing.

Proposals (or Policies) Map

An essential part of the development plan showing the location of proposals, designations and area-based policies in the Local Plan on an Ordnance Survey base map.

Public Inquiry

A formal procedure for dealing with planning appeals akin to a court of law where parties frequently have legal representation and cross-examination takes place.

Public Liability Insurance
Insurance to cover the injury or death or damage to property of anyone on or around your property.

Purchase costs

With property acquisitions, a prospective purchaser will typically incur acquisition or purchase costs related to legal and surveyor fees, VAT and stamp duty.

Purchaser
Person who is buying a property. Also known as the Buyer.

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Quantified demand

The quantified demand sets out all aspects of the dispute. It quantifies the monetary sum sought for damages regarding the breach detailed in the schedule and any other items of loss for which damages are sought. It should also set out whether VAT applies or not.

Quiet enjoyment

Quiet enjoyment is a term that means the tenant is entitled to operate the premises without any interference from the landlord.

Quinquennial

Rating revaluations in England, Wales and Scotland usually occur at five-year intervals, termed Quinquennial reviews.

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Abbreviations R:

RICS - Royal Institute of Chartered Surveyors

ROCE - Return on Capital Employed

ROE - Return On Equity

ROI - Return On Investment

ROR - Rate of Return

RPI - Retail Price Index

Rack rented

A historical term, still in everyday use in rent review clauses of modern leases, to the effect that the rent is at a fully open market level. A 'rack' rent has been 'stretched' (derived from the medieval torture instrument) to the full extent which could reasonably be expected on an open market letting.

Raised floor

Modern office buildings have floors raised above the structural slab to provide ease of access and a high degree of flexibility in positioning floor boxes for telecoms and computer networks.

Rateable Value

This is the assessment required of any non-domestic property (with some exceptions) under statute and is supposed to represent the rental value of any unit of assessment (hereditament) at the prescribed valuation date, subject to assumptions about repair on a full repairing and insuring basis. The tenancy assumed is from year to year with a reasonable prospect of continuance.

Rates exemptions

There are certain statutory exemptions from rates.

Rating liability

A rating liability is a charge based on the occupation of commercial land and buildings administered by the local authority. Separate arrangements exist for Scotland and Northern Ireland.

Rating list

This is the national list of all assessments (apart from those relating to utility/national networks contained within the central list). The list is available through the Valuation Office website.

Red book valuation

The RICS 'Red Book' contains rules and practice statements for all Chartered Surveyors who undertake asset and other forms of formal types of valuation. The latest edition of the Red Book took effect on 30 March 2012.

Redemption
Completion of the full and final repayment of a mortgage.

Redemption Figure
Amount required to fully repay a mortgage including interest and any penalties.

Reinstatement

Reinstatement refers to the tenant's liability to remove its alterations at lease expiry and reinstate the premises to their original condition, as at lease commencement. If carried out under licence, there will usually be an express covenant to reinstate the licence in addition to the 'general' obligation to do so in the Yielding Up clause. They are frequently encountered in dilapidations cases, where the landlord's claim for damages, based on the reinstatement cost, is subject to a Diminution in Value test (under common law principles rather than statute, as for repairs).

Rent

The consideration paid by the tenant to the landlord for the ability to occupy premises under a lease.

Rent review

A rent review is a periodic review (usually five years) of rent during a lease term. The vast majority of rent review clauses require the assessment of the open market, or rack rental value, at the review date, under specified terms. Still, some are geared to other factors, such as the movement in the Retail Price Index.

Repair covenants

Repair covenants are the contractual obligations in a lease which identify the landlord and the tenant's liabilities to repair.

Repair notice

A repairs notice usually takes the form of an interim schedule of dilapidations. The repairs notice intends to highlight to the landlord or tenant breaches of the lease during the term. They are frequently used in conjunction with Jervis v Harris provisions (see "Jervis v Harris").

Repayment Mortgage
Mortgage with monthly repayments consisting of capital combined with interest.

Repossession
Occurs when mortgage payments are in arrears and a lender chooses to take possession of the property that secures the loan.

Reserved matters

These are parts of a planning application that are not decided upon when the application is first submitted. Instead, they are agreed upon later, after the applicant has submitted more detailed information about the proposed development. Reserved matters include access, appearance, layout, scale, and landscaping.

Residential Property
Property occupied for private or domestic purposes.

Restrictive covenant

A covenant that restricts the use of land to enable the value and enjoyment of the land to be preserved.

Retail Price Index (RPI)

The Retail Price Index (RPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. The RPI tracks price changes associated with the cost of living. In the commercial property market, leases are often granted with rent reviews occurring by reference to the RPI (or occasionally the Consumer Prices Index) (generally on an upwards-only basis). Unlike the CPI Index, the RPI includes mortgage payments. The RPI was first introduced in 1947 and was, for many years, the Government's primary measure of inflation. In 2003 the Government announced that the UK inflation target would be based on the CPI, replacing the RPI for this purpose.

Retention
Amount held back by a lender until certain specified works have been completed.

Revenue per available room (RevPAR)

Revenue per available room (RevPAR) is one of the standard benchmarking measures in the hotel industry. However, it is not straightforward, as the revenue is related to room-generated revenue rather than total revenue. It is calculated by dividing all room revenue by the number of bedrooms. It can also be calculated by multiplying the ADR (or ARR) by the occupancy rate.

Revenues and expenditure method

A method for valuing trading properties, including public houses, bingo, hotels and marinas, by adopting an accounts assessment method without rental evidence.

Reverse premium

The opposite of a premium payment on assignment; instead of the outgoing tenant (assignor) receiving a lump sum for the lease, it pays the replacement tenant (assignee) to take the lease on.

Reversionary yield

A measure of investment analysis showing the relationship between the capital cost of acquisition and the estimated rental receivable at the next lease event.

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Abbreviations S:

SARB/SRB - Sale and Rent Back

SDLT - Stamp Duty Land Tax

SO - Standing Order

SSTC - Sold Subject To Contract

SV - Surveyor Valuation

SVR - Standard Variable Rate - Mortgage

Sale Contract
Legal agreement between a seller and an estate agent.

Salt search

A search of records to determine if the property has been affected by subsidence due to salt mines.

Schedule of condition

A record of the condition of premises at the commencement of a lease. Usually appended to the lease and referred to in the Repairing and Yielding Up covenants to limit the tenant's liabilities - typically to repair, keep and give back the premises in 'no better than' the condition than that evidenced by the schedule. Limits the tenant's exposure to various repair items during the lease and its dilapidated liability at lease expiry.

Schedule of dilapidations

This is a list of outstanding repair and maintenance items (that a landlord has assessed) accrued under the terms of a tenant's repair and maintenance obligations. The landlord often serves it at the end of the lease in the form of a 'Terminal' Schedule of Dilapidations. The tenant is obliged to carry out the outstanding works listed in the schedule or pay damages which represent the cost to the landlord of doing the works.

Scott Schedule

The Scott Schedule is a document that enables the parties to compare their respective positions concerning the landlord's original schedule of dilapidations. It comprises a series of columns in which each party responds to the opposing party's contentions.

Searches
Enquiries made to the local authority and Land Registry for determining whether any matters adversely affect the property or the surrounding area.

Section 18

Section 18 references Section 18 of the Landlord and Tenant Act 1927. The Act is split into two parts or 'limbs'. The first limb S 18(1), provides that the damages recoverable for breach of the repairing covenant may not exceed the diminution in value of the landlord's reversionary interest. The second limb S 18 (2), states that a landlord may not recover damages where it intends to demolish or carry out structural works to the property that render the tenant's repairs valueless.

Section 25 notice

The Landlord's Notice at lease renewal under the Landlord & Tenant Act 1954 procedure. It cannot be served under six or more than 12 months before the lease expiry date. Must confirm whether lease renewal is opposed or unopposed and on what terms the landlord is willing to offer a new tenancy.

Section 26 notice

The Tenant's Notice at lease renewal under the Landlord & Tenant Act 1954 procedure. It cannot be served under six or more than 12 months before the lease expiry date. Must confirm the terms which the tenant is seeking for the renewal of its lease.

Sections 24-28 of the 1954 Act

The sections of Part II of the Landlord & Tenant Act 1954 (as amended) which govern the Security of Tenure. Section 24 deals with the Continuation of the Tenancy after the contractual expiry date, including the rules relating to interim rent payable during the continuation or 'holdover' period. Sections 25-27 deal with the Notices which must be served to either renew, oppose renewal, or end the tenancy by Tenant's Notice to Quit. Section 28 deals with the agreement of future 'reversionary' leases.

Security
Property used to secure the mortgage loan.

Security of tenure

The protection (security) afforded to tenants of commercial premises by Part II of the Landlord & Tenant Act 1954 at the end of their lease.

Seller
Person who is selling a property. Also known as the Vendor.

Semi-Detached
Property where one side wall is shared with an adjoining property.

Service Charge
Charge to a tenant or leaseholder made by a landlord to cover costs of maintaining a property. Also known as Maintenance Charge.

Simplified planning zone

This is an area where the local planning authority has simplified the planning process to encourage development. In a simplified planning zone, certain types of development can be approved without the need to submit a full planning application.

Site-specific policies and proposals

These documents set out the local planning authority's policies for development in a particular area. They can identify land for specific uses, such as housing and employment, and set out criteria for controlling development on specific sites.

Sole Agency
Where only one estate agent is instructed exclusively by a seller to market a property.

Sole Selling Rights
Where one estate agent has exclusive rights to market a property and is entitled to a fee irrespective of how the property is sold.

Solicitor
Professionally qualified legal expert who prepares documents for the sale or purchase of a property.

Spatial planning

This type of planning takes a holistic approach to land use. It considers the impact of development on the environment, the economy, and society as a whole.

Specialised trading property

Property with trading potential, such as hotels, fuel stations, restaurants or the like, the market value of which may include assets other than land and buildings alone. These properties are commonly sold in the market as operating assets and with regard to their trading potential. They also called property with trading potential.

Stamp Duty Land Tax

This is a Government fixed tax, chargeable on the execution of documents pertaining to transactions such as Leases, Agreements for Leases and Conveyances. The duty is payable by the purchaser or lessee, and the disposal document can only be adduced as evidence of the transaction if adequately stamped. The central Government sets the rate applicable and varies depending on the value of the transaction.

Standard Variable Rate (SVR) Mortgage
Mortgage with interest rates that fluctuate at the discretion of the lender based on market conditions.

Statement of community involvement

This document outlines how the local planning authority will involve the community in the planning process. It should include information about how the public can comment on planning applications and how they can participate in planning meetings.

Statutory obligation

A lease generally includes covenants relating to the tenant's or landlord's obligations to comply with statutes or regulations.

Statutory undertakers

These organisations have the legal right to develop and operate utility services, such as gas, water, electricity, and telecommunications.

Strategic environmental assessment (SEA)

This process assesses the environmental impacts of a plan or policy. SEA is required for certain types of plans and policies, such as those likely to impact the environment significantly.

Structural Survey
Detailed report on construction and any defects of a property, following a thorough inspection carried out by a Chartered Surveyor. Also known as a Building Survey.

Studio Flat
Flat consisting of one principle living area comprising both cooking and sleeping facilities with a separate bathroom/shower room.

Sub-letting

A sub-letting occurs when a tenant grants a new lease for their property, or part thereof, to an alternative occupier, for a period less than the residue of the tenant's lease. The period of the sub-letting must be at least one day less than the unexpired period of the superior lease. If a tenant attempts to sublet the property for a period equal to, or more than, the unexpired period of their own lease, this operates as an assignment of the term and not as a sub-letting.

Subject to Contract
Term used to indicate a provisional agreement prior to exchange of contracts that is not yet legally binding.

Sui generis

Uses that do not fall within any particular Use Class, including theatres, houses in multiple occupation (where not C4), hostels providing no significant element of care, scrap yards, petrol filling stations and shops selling and/or displaying motor vehicles, retail warehouse clubs, nightclubs, launderettes, taxi businesses, amusement centres and casinos. The change permitted is from casinos to D2.

Supersession

Supersession is when a landlord's actual or intended future works to a property render a tenant's repairs of no value. This is used as a defence to the landlord's claim.

Supplementary planning documents/guidance (SPD/SPG)

These provide additional detail to the policies in the local plan. They can guide development on specific sites or on particular issues, such as design.

Surrender

A legal mechanism whereby a Lease may be brought to an end before its Contractual Expiry date. Often linked to the grant of a fresh Lease (aka Surrender and Regrant transactions) and associated with Lease Regearing, but also where the Landlord and Tenant agree on an early exit from the contract (Lease). For example, to permit redevelopment, or where the tenant has marketed its interest, and the replacement tenant requires a longer term than that available by assignment of the existing lease.

Survey
Report on the condition of a property.

Surveyor
Qualified expert who carries out the survey of a property.

Sustainability appraisal (including environmental appraisal) (SA)

This is an assessment of a plan's economic, environmental, and social impacts. SA is required for all local plans.

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Tenancy
Possession of a property owned by another party for a specified time period.

Tenancy Agreement
Legal document detailing terms whereby the owner of a property grants rights to another party to occupy it for a specified period of time. Also known as Lease Agreement.

Tenancy at will

Essentially a form of Licence - a legal (but non-Property) interest under which premises may be occupied by a "personal" agreement. A Tenancy at Will does not grant a formal Tenancy or create any legal/enforceable interest in the property, which is occupied "at the will of" the Landlord. Often used to allow early access to Premises pending completion of a Lease.

Tenant
Person (or entity) who is entitled to occupy a property under the terms of a Tenancy Agreement.

Tenant's improvements

The expression tenant's improvements describe a wide range of works usually carried out by a tenant at their own cost and typically require the landlord's prior approval. The tenant's improvements may not necessarily increase the value of the demised premises but can impact the future rent payable by a tenant. Section 19 (2) of the Landlord & Tenant Act 1927 provides that a covenant in a lease against the making of improvements without the landlord's consent is deemed subject to a proviso that consent will not be unreasonably withheld.

Tenant’s representative

An agent, usually a Surveyor, appointed by the tenant to represent them in negotiations and/or third-party dispute resolution - Arbitration, Independent Expert or Court proceedings.

Tenants in Common
An optional method of shared home ownership (not necessarily in equal shares). If an owner dies, the owner's interest in the property is passed to the owner's heirs, rather than to the other owners of the property.

Tenure
Conditions on which a property is held, i.e. whether it is freehold or leasehold.

Terminal schedule of dilapidations

The terminal schedule of dilapidations served at the lease end is intended to address all breaches of the lease, prepared following the recommended format in the dilapidations protocol.

Terraced
Property where both side walls are shared with adjoining properties.

Title
Legal right to ownership of a property.

Title deeds

Documents that show the legal ownership of a property.

Transfer of a Going Concern (TOGC)

A mechanism used to sell a property investment where VAT is chargeable but not payable and has a cash flow benefit. It only applies where the asset is and remains income-producing after the transaction.

Transfer TR1

A document used to transfer property ownership from the seller to the buyer legally.

Transition

This is a mechanism employed by the Government under the statute to limit (phase) year-on-year changes in liability following a rating revaluation. The system is self-funding, so that decreases finance limits increase.

Tree preservation order (TPO)

This is an order made by the local planning authority to protect a tree or group of trees. A TPO means that the tree or trees cannot be topped, lopped, or felled without the local planning authority's consent.

Triple net income

The net income from a property investment after deducting ground rent, non-recoverable expenditure and void holding costs.

Turnover rent

A method of calculating all or part of the rent of commercial premises by reference to the tenant's turnover. Exact terms vary between Leases, but usually, this is based on a percentage of Gross Receipts. The tenant will typically pay a Base Rent "on account" based on the previous year's rent or a percentage (e.g. 80%) of Open Market Rental Value, with a balancing charge at year-end. Most common in "destination retail" locations such as Regional Shopping Centres and the Licensed and Leisure sectors.

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Under Offer
Status of a property from the point at which a seller has accepted an offer until exchange of contracts.

Undertaking

A promise to do something. For example, if your property needs some work done, your mortgage company may require you to sign an undertaking to complete the work within a specific time.

Uniform Business Rate (UBR)

The Uniform Business Rate (UBR) is adjusted annually by inflation (RPI). It is the multiple applied to Rateable Value to calculate rates payable (subject to transition and some other reliefs for small businesses).

Use class

The category of Town Planning Use to which the current or intended use of a property is allocated, as defined in the Town and Country Planning (Use Classes) Order 1987. This is a Statutory Instrument and is subject to periodic variation and updating.

User clause

This contractual provision within a lease specifies the use or uses to which a property may be put and the uses which are prohibited. The formal classification of "Uses" are set out in the Town and Country Planning (Use Classes) Order 1987 as amended, a statutory instrument defining various use classes. The terminology of a user clause contained within a lease is critical in determining whether the use specified is restrictive or open. This aspect can be vital when considering a property's open market rental value.

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Vacant Possession
Provision of a property that has been vacated by any previous occupants.

Valuation
Survey conducted by a suitably qualified professional such as a Chartered Surveyor to establish an estimate of the current market value of a property.

Valuation Office Agency (VOA)

The VOA is responsible for maintaining a fair and accurate rating list.

Valuation roll

This is the Scottish equivalent of the Rating List.

Valuation Tribunal

This lower court is responsible for hearing rating appeals in England and Wales.

Variable Base Rate
Basic rate of interest charged on a mortgage that may change due to market conditions.

Vendor
Person who is selling a property. Also known as the Seller.

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Waste

Waste is any material or object no longer wanted and requires disposal. Waste can be generated from various sources, including households, businesses, and construction sites. Waste can be classified in many ways, including its physical form, composition, and potential for reuse or recycling.

Waste Local Plan

A waste local plan is a statutory development plan that sets out the waste management policies for a local area. Waste local plans are prepared by waste planning authorities, usually local authorities or county councils. Waste local plans must be consistent with the national waste strategy set out by the Department for Environment, Food and Rural Affairs (DEFRA).

Without prejudice

A legal term applied to negotiations and correspondence with the intention that anything said or offers made are Privileged and cannot be subject to forced Disclosure in the event of litigation or arbitration. This allows the parties and/or their agents to negotiate more freely and explore the potential for settlement without making binding offers - i.e. without prejudicing their position regarding what may be presented, e.g. Expert Evidence if matters become contentious and subject to formal dispute resolution procedures.

Written Representations

Written representations are a procedure by which representations on planning appeals, development plans, and Development Plan Documents (DPDs) are dealt with by change of correspondence without needing a full public inquiry or informal hearing. Written representations can be submitted by anyone interested in a planning application or development plan. The local planning authority must consider all written representations received before deciding on a planning application or development plan.

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Year to year

Under the rating hypothesis, it is assumed that the actual property is let in an arrangement between a reasonable landlord and tenant, but on the assumption that a tenancy will run from one year to the next with an expectation of continuance.

Yield

Income generated from a property expressed as a percentage of the property value.

Yielding up

The yield-up clause sets out the conditions for the property to be returned to the landlord, e.g. per the lease covenants and may impose additional obligations.

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Zoning

This is the accepted "market standard" method of rental analysis and valuation adopted for conventional high street retail premises, but not retail warehousing or large shops.

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