Plain-English definitions of 64 UK commercial, bridging and development finance terms, from GDV and LTC to ICR, SPV and practical completion. Not advice.
Glender editorial team ·
Property finance conversations come with a lot of shorthand. This glossary explains 64 terms you are likely to hear when exploring business and investment property funding in the UK, including commercial, bridging, refurbishment and development contexts. Definitions are deliberately general. Different professionals and providers may use a term slightly differently, so if something matters to your situation, ask the independent professional you are speaking with what they mean by it.
Glender is a technology and introduction portal. We do not lend, approve funding or give personalised financial advice, and nothing on this page is a quote, offer or recommendation.
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A fee some providers charge for setting up a facility. Whether one applies, and how it is worked out, is set by the provider on their own terms.
In this context, the property (or properties) a funding conversation is about.
Buying property at auction, where completion deadlines are usually fixed and short. This is one reason short-term funding is often discussed alongside auction purchases. See Bridging Finance Explained.
A term in a lease that may allow the landlord or tenant to end the lease early at set points.
Short-term funding commonly discussed to "bridge" a gap, for example between buying a property and arranging longer-term funding or a sale. See Bridging Finance Explained.
The cost of the construction works in a project, usually set out in a cost plan or contractor quote.
Standards for how building work is carried out, separate from planning permission. Sign-off is typically needed at the end of works.
Raising funds against a property already owned, sometimes called equity release in a business context (not to be confused with the consumer later-life product of the same name).
A legal right over a property given as security. It is registered at HM Land Registry for registered land.
Property used for business purposes, such as shops, offices and industrial units, rather than as someone's home. See Commercial Property Finance Explained.
The point at which a purchase or funding transaction legally finishes and money changes hands.
An allowance in a project budget for unexpected costs.
A breakdown of the expected costs of a development or refurbishment, often prepared by a quantity surveyor.
The perceived strength of a tenant and its ability to meet its lease obligations over time.
The portion of a facility released at the start, before any staged releases for works.
Meeting the regular payments due on borrowing.
A document setting out a project's expected costs, timings and end values. People typically prepare their own appraisal before speaking with third parties.
Funding commonly discussed for building new property or substantially converting existing buildings, usually released in stages as works progress. See Development Finance Explained.
Releasing part of a facility, often in stages linked to progress on site.
The checks a provider or professional carries out before proceeding, such as on the property, the borrower and the project.
The owner's own stake in a property or project, as distinct from borrowed funds.
How a short-term facility is expected to be repaid at the end of its term, for example through a sale or by moving onto longer-term funding.
A fee some providers charge when a facility is repaid. Whether one applies is set by the provider on their own terms.
The main charge over a property, which ranks ahead of any other charges.
Additional borrowing from an existing provider against the same property.
The expected value of a completed development, for example the combined value of all units once built and sold or let.
Building on a site from scratch, as opposed to converting or refurbishing an existing building.
A promise by an individual, often a company director, to meet obligations if the borrowing company cannot. Anyone asked for one would usually take independent legal advice.
Substantial works, often involving structural changes, planning or building regulations, as opposed to cosmetic updates.
A property let to several tenants from more than one household who share facilities. Licensing rules may apply.
A measure comparing a property's rental income with the cost of borrowing on it. Providers set their own approach to how it is used.
A non-binding outline of how a provider might approach a request, usually subject to checks and valuation.
Property held to be let to tenants for rental income, rather than occupied by the owner.
"Know your customer" and "anti-money laundering" checks that regulated firms carry out to confirm identity and the source of funds.
The government body that records ownership of land and property in England and Wales. Scotland and Northern Ireland have their own registers.
The legal agreement setting out how a tenant occupies a property, including term, rent and obligations.
Cosmetic or non-structural works, such as new kitchens, bathrooms or decoration.
A business structure that combines features of a partnership and a limited company, sometimes used to hold property.
Borrowing expressed as a percentage of a project's total costs.
Borrowing expressed as a percentage of the expected completed value of a development.
Borrowing expressed as a percentage of a property's current value.
Additional funding that sits behind the main (senior) debt in a project, typically ranking second for repayment.
A building that combines uses, such as a shop with flats above. Sometimes called semi-commercial.
An independent surveyor who checks progress and costs on a development, usually before each staged release of funds.
A business that occupies the property it owns, rather than letting it to tenants.
A document confirming that construction works are substantially finished.
Certain changes that can be made to a property without a full planning application, subject to conditions and limits.
Consent from the local planning authority to carry out development or change a property's use.
A group of properties held by the same owner, sometimes discussed together in a single funding conversation.
Replacing an existing facility with a new one, for example when a short-term facility comes to an end.
Funding commonly discussed for improving an existing property, from light cosmetic works to heavy structural refurbishment.
A point in a lease when the rent may be reviewed.
An arrangement some providers use where interest is held back from the facility at the start rather than paid monthly. Providers set their own terms.
An arrangement where interest is added to the balance and repaid at the end of the term rather than monthly. Providers set their own terms.
A charge that ranks behind the first charge on the same property.
The main borrowing in a structure, which ranks first for repayment.
Whether a property is let to one tenant or to several.
A company set up specifically to hold a property or carry out a project, often a limited company with a single purpose.
A summary of the tenants in a property, their lease terms and the rents they pay.
The length of time a facility or lease runs for.
The legal ownership of a property, as recorded at the Land Registry.
An assessment of a property's value, usually carried out by an independent RICS-registered surveyor instructed for the purpose.
A period when a property, or part of it, is empty and not producing rent.
A list of planned works, often with costs and timings, used in refurbishment and development conversations.
Glender is a technology and introduction portal for business and investment property finance pathways. You can read plain-English guides in the education hub, organise your requirement in the Glender Assessment, and, where appropriate, request an introduction to an independent third-party professional or provider. Pathways on Glender are typically discussed from roughly £50k–£100m as indicative scope. That is not an offer, quote or guarantee. You stay in control of whether you proceed and who you engage.
Typically under 2–3 minutes. No credit search. Glender is not a lender or broker and does not give advice.
Glender provides general information about business and investment property funding pathways via a technology portal. Definitions on this page are general and may be used differently by different professionals and providers. Content is not personalised financial, legal or tax advice. Where introductions are made, they are to independent third-party professionals or providers. Glender is not a lender, bank, broker, financial adviser, or FCA-authorised firm. Nothing here is an offer of finance, a quote, a rate, an approval or a recommendation.