Glossary of Property Term - G

Garden city
A town developed at a relatively low density, intended to combine the advantages of both urban and rural living, self-sufficient in employment, with its own industrial, commercial and agricultural land uses, being one of a number of such satellite towns grouped around a central city. The term was first used, by Ebenezer Howard, in 1989 and the concept was first implemented in Letchworth Garden City from 1903.

Gated Community
The concept of gating and fencing a group of dwellings into a single compound for the purpose of mutual security and for the increased enjoyment by residents and sharing the common areas such as driveways, open space and amenities. Theoretically gated development provides a range of security, safetly and privacy. (Clarke, 2004)

Gazebo (belvedere)
A light building or structure like a summer house in a garden or attached to a building. The original gazebo was built to provide a small room well above ground level, with a good view of the landscape and sometimes enabling advance warning to be given of approaching stage coaches.

Gentrification
The rehabilitation of a run-down residential area, as a result of better-off people, often young professionals, moving into the area and improving their properties. The term refers both to the physical improvement and to the “upward” change in social mix.

Gilts (gilt-edged securities)
Securities where the government guaranties both the interest and the nominal capital sum payable upon redemption.

Going concern value
The total value of a business as carried on, with all its assets and liabilities, goodwill and potentialities. If the premises used are owned by the business, they form part of the going concern value on the basis of their value to the business.

Goodwill
In property terms an intangible but marketable asset founded on the probability that customers will continue to resort to the same premises where business is carried on under a particular name, or where goods are sold or services provided under a trade name, with the consequence that there is likely to be a continuing prospect of earning an acceptable profit. However, in some cases goodwill may be wholly or largely personal, depending on the character of the proprietor. Although its value to him may be substancial, if he retires or dies or, on moving, is unable to set up again in the same locality, that value may be lost. On a sale of a premises in such circumstances the goodwill element will be extinguished, except in so far as his customers can be successfully recommended to another person.

Green belt
For planning purposes, the name given to an area of rural land surrounding a town, city or conurbation in which development is discouraged, with the object of preserving the rural environment by checking further urban growth and sprawl or the coalescence of adjoining urban areas.

Gross development value (gross realisation)
In a residual valuation, the value of the proposed development as though completed at the time of the valuation.

Gross income
Income before deduction of any outgoings, for which the recipient is liable, eg for property such items as repairs, insurance and management.

Gross rent
Actual or estimated rent before deduction of outgoings

Gross trading profit
The total annual turnover or receipts less purchases (adjusted for stock changes as appropriate).

Gross value
The capital value of a property before making adjustment for acquisition costs.

Ground lease
A long lease granted at a ground rent, ie a rent disregarding the value of any buildings on the land but reflecting any right to develop the land with buildings. The tenant may

  1. be obliged to erect buildings, or
  2. be permitted (but not required) to erect buildings thereon, or
  3. be debarred from so doing

Ground rent
Rent paid for vacant land which is suitable for development. If the property is improved, ground rent is that portion attributable to the land only but may reflect a right undertake certain building operations. Note: Modern ground leases normally incorporate periodic rent reviews and often the basis of review is an agreed proportion of the rack-rental value (or of rack-rents received) at the date of review.  In such circumstances the rent payable on review can be significantly different from the ground rental value of the land for a new development.

Growth area
An area of planned or spontaneous expansion of population over the years ahead.

Growth rate
The rate at which rents or capital values in a particular market have increased (or declined, “negative growth rate”) in the past or are predicted to change in the future. It may be due either to actual or expected changes in supply and demand , ie real change , or to inflation (or deflation) and is usually expressed as an annual percentage from some given time and, probably, over a stated period of years.

Guarantee
An agreement to pay a debt or perform the obligation of another in the event of the debt or action not being paid or performed. There must be a failure to pay or perform before the guarantee can be said to take effect.

Guarantor
A third party to a contractual relationship who guarantees certain undertakings by a party to the contrat, eg that rent will be paid and tenant’s covenants performed under the terms of a lease.