This glossary explains the terms and phrases used across the DCRE website.

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It is not a general property dictionary. It exists to clarify language that often causes confusion, false confidence, or misplaced risk in higher-stakes property decisions.

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If a term appears here, it is because misunderstanding it regularly leads to problems later.

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Asset-led assessment

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An asset-led assessment starts with the physical, legal, and planning reality of a property, not the funding structure proposed against it.

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In practice, this means interrogating what the asset genuinely supports before considering leverage, exit, or deal mechanics.

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It matters because funding built on assumptions rather than asset reality is where most late-stage failures begin.

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Pre-underwriting review

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A pre-underwriting review is an independent assessment carried out before a lender has committed credit, valuation, or legal spend.

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It tests whether the asset, use, condition, planning position, and value assumptions are likely to hold up once formal scrutiny begins.

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It matters because issues discovered after underwriting has started are harder to fix and more expensive to unwind.

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Independent property judgement

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Independent property judgement means advice that is not driven by fees, completion pressure, or alignment with a lender, agent, or broker outcome.

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The role is to assess risk and reality, not to make a deal work at all costs.

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It matters because independence is often the difference between early course correction and late-stage damage control.

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High-stakes decision

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A high-stakes decision is any property decision where the cost of being wrong is disproportionate to the fee spent on advice.

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This typically includes bridging, mixed-use assets, planning-sensitive sites, time-pressured exits, disputes, or portfolio-level exposure.

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It matters because the higher the stakes, the less forgiving the process becomes.

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Before funding

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Before funding refers to work carried out prior to loan completion, valuation instruction, or formal credit approval.

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This is where risk is cheapest to assess and easiest to manage.

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It matters because once funding is live, options narrow and leverage shifts.

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Post funding

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Post funding refers to work carried out after a loan has completed and capital is already deployed.

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This often involves reassessing assumptions, stabilising position, or managing emerging issues.

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It matters because post-funding work is usually about damage limitation rather than optimisation.

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Contested situation

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A contested situation exists where there is disagreement, tension, or misalignment between parties.

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This may involve valuation disputes, planning interpretation, lender pressure, borrower expectations, or third-party advice conflicts.

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It matters because contested environments reward evidence and clarity, not opinion or optimism.

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Bridging finance

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Bridging finance is short-term lending designed to solve timing or complexity problems rather than provide long-term funding.

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It is powerful when used precisely and unforgiving when assumptions fail.

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It matters because bridging magnifies both good decisions and bad ones.

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Exit risk

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Exit risk is the risk that the proposed repayment route does not materialise in the expected timeframe or at the expected value.

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This can relate to refinancing, saleability, planning outcomes, or market behaviour.

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It matters because exit risk is where lenders and borrowers most often diverge in expectations.

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Down-valuation

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A down-valuation occurs when a formal valuation returns a figure lower than expected or modelled.

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This is rarely random. It usually reflects assumptions that do not hold up under inspection.

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It matters because down-valuations often surface issues that existed from the start but were not tested early.

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LTV vs real-world leverage

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Loan to value is a mathematical ratio. Real-world leverage reflects how exposed a position actually is once risk, liquidity, and exit uncertainty are considered.

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Two deals with the same LTV can carry very different risk profiles.

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It matters because relying on headline ratios can hide structural weakness.

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Credit-led underwriting

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Credit-led underwriting focuses primarily on borrower strength, covenant, and repayment mechanics.

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Asset considerations are often secondary.

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It matters because strong credit does not fix weak assets.

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Asset-led underwriting

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Asset-led underwriting prioritises the property itself, its use, condition, planning position, and saleability.

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Credit strength supports the deal but does not replace asset fundamentals.

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It matters because the asset is what remains if everything else fails.

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Mixed-use asset

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A mixed-use asset contains more than one use class, function, or occupation type.

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These assets often look straightforward but carry layered valuation, planning, and exit considerations.

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It matters because mixed-use complexity is frequently underestimated.

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Ancillary accommodation

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Ancillary accommodation is space that is intended to support a primary dwelling rather than operate independently.

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The distinction is often blurred in marketing and assumptions.

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It matters because misuse or misinterpretation can materially affect value and lending appetite.

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Occupancy tie

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An occupancy tie restricts who may live in a property, usually linked to employment or land use.

These restrictions can significantly affect value and saleability.

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It matters because occupancy ties are often misunderstood or minimised until too late.

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Planning risk

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Planning risk refers to uncertainty over whether consent will be granted, varied, or upheld.

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It is distinct from planning complexity, which may be manageable.

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It matters because planning outcomes are binary and markets price that risk sharply.

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Planning uncertainty

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Planning uncertainty exists where outcomes are not guaranteed but risk can be assessed and mitigated.

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This often involves precedent, appeal history, or policy interpretation.

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It matters because uncertainty can be priced, risk cannot.

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Lawful use

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Lawful use refers to how a property is legally permitted to be used, regardless of how it is currently used.

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Assumed use and lawful use are often not the same.

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It matters because lenders and valuers rely on lawful use, not anecdotal history.

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Condition vs value

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Condition describes the physical state of a property. Value reflects what the market will pay given condition, use, and risk.

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A property can be in poor condition but still valuable, or well presented but fundamentally constrained.

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It matters because presentation can distract from structural issues.

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Instruction scope

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Instruction scope defines exactly what work is being undertaken, for whom, and for what purpose.

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Clear scope protects all parties and ensures outputs are relied upon correctly.

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It matters because vague instructions produce vague outcomes.

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Independence and conflicts

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Independence means advice is given without financial alignment to the transaction outcome.

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Any potential conflicts should be disclosed or avoided.

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It matters because conflicted advice erodes trust and credibility.

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Evidence-led reporting

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Evidence-led reporting relies on verifiable facts, documentation, and observable conditions rather than opinion.

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Assumptions are stated clearly and tested.

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It matters because evidence holds up under pressure.

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Lender-ready documentation

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Lender-ready documentation is structured, reasoned, and written with underwriting scrutiny in mind.

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It anticipates questions rather than reacting to them.

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It matters because clarity accelerates decisions.

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Reliance and non-reliance

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Reliance defines who is entitled to rely on a report or assessment.

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Non-reliance protects against unintended use.

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It matters because misuse of advice can create exposure for all involved.

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Contested valuation

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A contested valuation arises where value conclusions are challenged due to methodology, assumptions, or context.

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Resolution requires evidence, not opinion.

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It matters because valuation disputes often reflect deeper asset issues.

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Assumption drift

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Assumption drift occurs when early assumptions slowly become accepted as fact without being re-tested.

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This often happens as deals gather momentum.

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It matters because drift compounds risk quietly.

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Late-stage discovery

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Late-stage discovery refers to material issues identified after funding, valuation, or legal processes are underway.

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These issues are rarely new, only newly visible.

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It matters because late discovery limits options.

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Position hardening

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Position hardening happens when parties become entrenched due to time, cost, or reputational pressure.

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Decision-making becomes defensive rather than rational.

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It matters because hardened positions reduce the chance of sensible resolution.

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Salvage vs rescue

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Rescue implies reversing a failing position. Salvage focuses on preserving value and limiting loss.

Not all situations are rescuable.

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It matters because realism protects capital.

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Value erosion

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Value erosion is the gradual loss of asset value due to delay, uncertainty, or unmanaged risk.

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This often occurs without a single defining event.

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It matters because erosion is usually preventable early and irreversible late.