Glossary definition
Outline Planning Permission
A form of planning consent that establishes the principle and scale of development on a site without approving the detailed design, which is dealt with subsequently through reserved matters applications. Outline permission is commonly sought on larger sites to de-risk the land value before committing to full architectural design costs.
Definition
A form of planning consent that establishes the principle and scale of development on a site without approving the detailed design, which is dealt with subsequently through reserved matters applications. Outline permission is commonly sought on larger sites to de-risk the land value before committing to full architectural design costs. Lenders will fund sites with outline planning at lower leverage than those with full or reserved matters approval, reflecting the residual planning risk and the need for further consents before construction can commence.
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.
Pre-Planning Risk
The risk that a development site fails to secure planning permission, or that the consent granted is materially different from the scheme envisaged, undermining the project's financial viability.
Residual Land Value
The value of a development site calculated by taking the gross development value of the completed scheme and deducting all development costs including build costs, professional fees, finance costs, and developer profit.
Greenfield
Land that has not been previously developed, typically agricultural or open countryside, as distinguished from brownfield (previously developed) land.
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
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 readRead
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