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The Community Infrastructure Levy (CIL) is a planning charge payable by landowners wishing to develop their land, which was introduced by the Planning Act 2008 as a way for local authorities in England and Wales to raise funds to help deliver infrastructure, facilities and services in their area e.g. schools and transport improvements. The Levy is intended to create a fairer spread of contribution towards the cost of infrastructure.

The Community Infrastructure Levy (CIL) is a planning charge payable by landowners wishing to develop their land, which was introduced by the Planning Act 2008 as a way for local authorities in England and Wales to raise funds to help deliver infrastructure, facilities and services in their area, e.g. schools and transport improvements. The Levy is intended to create a fairer spread of contribution towards the cost of infrastructure.

We’ve seen an increase in the number of enquiries where a lender is asking for cover because a property is part of a development that is subject to a CIL. Our new Community Infrastructure Levy policy offers the solution if your lender is concerned about the risk of the local authority taking enforcement action against individual plot purchasers for outstanding past or future CIL payments, or because there is no evidence of payments made, which they would have to deal with if the borrower subsequently defaults on their mortgage in the future.

This lender-only policy provides cover for the term of the mortgage. In the event of enforcement action by the local authority against the individual properties on the development due to non-payment by the developer (e.g. they have gone bust), and the borrower defaulting on their mortgage, the policy covers the lender’s legal costs in defending the enforcement action taken, and the costs in complying.

Premiums start at £90 for a limit of indemnity of £100,000.