Glossary definition
AML/KYC (Anti-Money Laundering / Know Your Customer)
The regulatory due diligence process that lenders, brokers, and solicitors must complete to verify the identity of borrowers and the legitimate source of their funds. Under the Money Laundering Regulations 2017 (as amended), all parties in a property transaction must carry out customer due diligence before establishing a business relationship.
Definition
The regulatory due diligence process that lenders, brokers, and solicitors must complete to verify the identity of borrowers and the legitimate source of their funds. Under the Money Laundering Regulations 2017 (as amended), all parties in a property transaction must carry out customer due diligence before establishing a business relationship. AML/KYC checks typically include passport verification, proof of address, source of wealth documentation, and enhanced due diligence for politically exposed persons.
See also
Closely related terms.
Facility Agreement
The legal contract between a borrower and a lender that sets out all terms and conditions of the loan including the facility amount, interest rate, drawdown mechanics, repayment terms, covenants, and events of default.
Personal Guarantee (PG)
A legally binding commitment from an individual, usually the developer or company director, to personally repay some or all of a loan if the borrowing entity defaults.
Special Purpose Vehicle (SPV)
A limited company set up specifically to hold a single property development project, ring-fencing it from the developer's other business activities and assets.
Further reading
Guides that touch this term.
Guide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 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
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 readRead
Where it shows up
Finance products using this term.
Service
Development Finance
Senior debt funding for ground-up residential and commercial developments.
From 6.5% p.a. · Up to 65-70% LTGDVReadService
Bridging Loans
Short-term finance for acquisitions, auction purchases and time-sensitive deals.
From 0.55% p.m. · Up to 75% LTVReadService
Mezzanine Finance
Stretch your capital stack beyond senior debt to reduce equity requirements.
From 12% p.a. · Up to 85-90% LTGDVRead
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