Glossary definition
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. S106 agreements can represent a substantial additional cost on a development and must be carefully assessed during the appraisal stage.
Definition
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. S106 agreements can represent a substantial additional cost on a development and must be carefully assessed during the appraisal stage. They are registered as a charge against the land title and bind future owners.
Further reading
Guides that touch this term.
Guide
Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
Arrangement fees in development finance are rarely as straightforward as a single percentage. This guide exposes the hidden layers of fees that lenders charge and shows you how to negotiate effectively.
8 min read readReadGuide
Can I Get Development Finance With No Track Record?
An eligibility guide for developers without a completed scheme. We explain which lenders will consider you, exactly what they check, and the lower leverage and higher pricing to expect.
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.
8 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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