Balcony initially terrified the Queen and family (7)

I believe the answer is:

terrace

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'balcony' is the definition.
(I've seen this before)

'initially terrified the queen and family' is the wordplay.
'initially' suggests taking the first letters.
'the queen' becomes 'ER' (Elizabeth Regina).
'and' is a charade indicator (letters next to each other).
'family' becomes 'race' (I can't explain this - if you can you should believe this answer much more).
The first letter of 'terrified' is 't'.
't'+'er'+'race'='TERRACE'

Can you help me to learn more?

(Other definitions for terrace that I've seen before include "street" , "Urban housing" , "Hillside level" , "Caterer (anag) - houses in a row" , "Balcony" .)

I've seen this clue in The Telegraph.

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