Glossary definition
Site Acquisition
The process of purchasing a development site, including negotiation, due diligence, exchange of contracts, and completion. Site acquisition costs include the purchase price, SDLT, legal fees, and any option or conditional contract premiums.
Definition
The process of purchasing a development site, including negotiation, due diligence, exchange of contracts, and completion. Site acquisition costs include the purchase price, SDLT, legal fees, and any option or conditional contract premiums. Lenders will fund a proportion of the site acquisition cost through the day one advance, with the developer typically required to contribute the balance from equity.
See also
Closely related terms.
Day One Advance
The initial tranche of a development or bridging loan released on the first day of the facility, typically used to fund the site acquisition.
SDLT (Stamp Duty Land Tax)
A tax payable on the purchase of land and property in England and Northern Ireland, calculated on a tiered basis with rates increasing for higher-value transactions.
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.
Bridging Loan
A short-term secured loan used to bridge a gap between a purchase and a longer-term funding solution or sale.
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
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
Using a Bridging Loan to Buy at Auction: A Step-by-Step Guide
Buying at auction requires completing within 28 days. Bridging loans are the go-to funding solution. This guide covers how to get pre-approved, what it costs, and how to plan your exit.
4 min read readRead
Where it shows up
Finance products using this term.
Ready to apply
Knowing the term is one thing.
Getting it on your term sheet is ours.
Send us the outline. We come back with indicative pricing from the right lenders inside a working day.