Glossary definition
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. Planning permission is a key de-risking milestone for lenders, and most development finance facilities require at least outline or full planning consent to be in place before funds are advanced.
Definition
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. Planning permission is a key de-risking milestone for lenders, and most development finance facilities require at least outline or full planning consent to be in place before funds are advanced. The planning process involves consultation, assessment against local plan policies, and can take 8 to 13 weeks for straightforward applications.
See also
Closely related terms.
Prior Approval
A lighter-touch planning process required for certain types of permitted development, where the local authority assesses specific matters such as transport, flooding, contamination, and noise impact.
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.
S106 (Section 106 Agreement)
A legally binding obligation negotiated between a developer and the local planning authority as part of a planning permission, requiring the developer to provide or fund specific community benefits such as affordable housing, public open space, or highway improvements.
CIL (Community Infrastructure Levy)
A charge levied by local authorities on new development to help fund infrastructure such as schools, roads, and healthcare facilities.
Further reading
Guides that touch this term.
Guide
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 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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