Glossary definition
Turnkey
A development that is delivered fully complete and ready for immediate occupation, with all fixtures, fittings, and finishes in place. Turnkey delivery is common in forward-sale agreements with housing associations or institutional investors, where the buyer expects to take possession without any further works.
Definition
A development that is delivered fully complete and ready for immediate occupation, with all fixtures, fittings, and finishes in place. Turnkey delivery is common in forward-sale agreements with housing associations or institutional investors, where the buyer expects to take possession without any further works. Lenders view turnkey pre-sales favourably as they provide certainty of exit and reduce the developer's sales risk.
See also
Closely related terms.
Practical Completion
The stage at which a building project is deemed complete and fit for its intended purpose, even though minor snagging items may remain.
SPA (Sale and Purchase Agreement)
A legally binding contract setting out the terms on which a property or site is to be sold and purchased, including the price, completion date, and any conditions.
Development Exit Finance
A short-term loan that replaces a development finance facility once construction is substantially complete, providing time to sell units at optimal prices.
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
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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