Real Estate Finance Law

We work with lenders to ensure finance arrangements are legally sound and commercially viable. Our role includes reviewing borrower structures, verifying title and ownership, and ensuring adequate security is in place over the property and any associated assets. We draft and negotiate loan and security documents that reflect the lender’s risk profile and commercial objectives. Where appropriate, we advise on guarantees, debentures, and assignment of rental income.

Key risks in property finance include title defects, planning irregularities, environmental liabilities, tenant insolvency, and market volatility. We help mitigate these through thorough legal due diligence, robust loan and security documentation, and effective risk allocation between parties. We ensure conditions precedent are satisfied, advise on property insurance, and consider enforcement rights in the event of default.

Development finance typically involves staged drawdowns, with funds released in line with construction milestones. Unlike traditional term loans secured against income-producing assets, development finance carries higher risk and requires careful structuring. Our cross-disciplinary team ensures the finance aligns with the development projects and wider commercial objectives.

Islamic finance refers to Sharia-compliant financial arrangements, which prohibit the payment or receipt of interest. In real estate, this is typically structured using Ijara (leasing), Murabaha (cost-plus sale), or Diminishing Musharaka (co-ownership) models. Our Islamic finance solicitors have more than ten years of experience advising lenders, corporates and individuals on how to apply the principles of Sharia law to all kinds of transactions – from property acquisitions to development finance and other planned investments.

We support lenders and borrowers with the swift structuring and execution of short-term finance, often required to secure property quickly or unlock equity. Our role includes reviewing title, identifying legal risks, and drafting concise loan and security documents under tight deadlines. We also advise on redemption strategies, exit plans, and potential refinancing. Whether the finance is for acquisition, refurbishment, or auction purchase, we ensure the transaction progresses efficiently and with minimal delay.

Finance agreements should include comprehensive protections for the lender, including representations and warranties, financial covenants, default provisions, and clear enforcement rights. Security should be taken over the property, rental income, and, where relevant, corporate or personal guarantees. Legal charges should be registered, and priority of security confirmed. Our approach ensures agreements are legally enforceable and aligned with commercial objectives.