Glossary definition
Air Rights
The right to develop or build in the airspace above an existing building or piece of land, which can be purchased or leased separately from the ground-level property. Air rights development has become increasingly common in London and other high-value urban areas, with schemes adding additional storeys to existing buildings under permitted development rights or planning consent.
Definition
The right to develop or build in the airspace above an existing building or piece of land, which can be purchased or leased separately from the ground-level property. Air rights development has become increasingly common in London and other high-value urban areas, with schemes adding additional storeys to existing buildings under permitted development rights or planning consent. Financing air rights schemes can be complex, as the security structure must address the relationship between the airspace and the underlying freehold.
See also
Closely related terms.
Planning Permission
Formal consent from the local planning authority required before carrying out most types of development, including new construction, material changes of use, and significant alterations to existing buildings.
Permitted Development Rights
Automatic planning permissions granted by Parliament through the General Permitted Development Order, allowing certain building works and changes of use without needing to apply for planning permission from the local authority.
Title Deed
A legal document that proves ownership of a property or parcel of land, now predominantly held in electronic form at HM Land Registry.
Security Package
The full suite of security taken by a lender to protect their position on a development loan, typically including a first legal charge over the property, a debenture over the borrowing company, personal guarantees from directors, and an assignment of key project contracts.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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