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Banking and Real Estate Development Finance

Banking and Real Estate Development Finance

We advise on banking and finance matters, including development projects, to help you secure funding and protect investments.

At TWM Solicitors, our expert Banking and Real Estate Finance team specialises in advising banks and financial institutions (including alternative peer-to-peer and private lenders), on a range of financing transactions, including short term bridging, secured or unsecured commercial mortgages across a variety of retail, hospitality and care sectors and freehold and leasehold real estate development financing, on both a syndicated and bilateral basis.

We regularly advise clients on a wide range of asset classes. Be it a care home or day-nursery purchase, a hotel acquisition or a much larger scale multi-build residential development, the team actively manages transactions from the outset, offering business-minded advice and commercial solutions to any risks identified, with a view to both protecting the lender’s interests and facilitating efficient drawdown, enshrining our lender clients’ aim of providing good customer service for the borrower. We pride ourselves in condensing complex legal information into practical advice that our clients can act on.

Unlike many of our counterpart firms, our Banking Real Estate Finance team conducts both the property due diligence and banking and security elements of a transaction, providing a dedicated and seamless service when drafting finance and security documents, and reporting to the lender on the security assets and collateral.

We are able to quickly and efficiently co-ordinate specialist advice when needed by working collaboratively with our Corporate and Commercial Property teams to provide a joined up and complete service to our clients, and with our Dispute Resolution team in connection with enforcement and recovery.

We also work closely with our colleagues in our Lending team, who specialise in mortgage debt and consumer credit.

Key Contact

David Powell profile picture
David Powell

Partner in Real Estate Finance and Head of Corporate & Commercial

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Here’s why you should choose our team

City-quality advice at regional prices – highly specialised solicitors offering expert advice and representation at competitive regional prices.

Solutions-oriented – we go beyond legal advice to provide practical personalised solutions and strategic commercial insights.

Accessible and responsive – easily accessible and responsive, ensuring you receive timely and proactive advice, when you need it.

Transparent pricing, no hidden fees – expect upfront pricing for your peace of mind and financial clarity throughout a matter.

Full service support – comprehensive legal services for every stage of your business, supported by seamless collaboration across our specialist teams.

Trusted by clients and professionals – our track record speaks for itself with a strong reputation for achieving outstanding results and high professional rankings.

FAQs

Below are some questions that we are frequently asked by clients who require advice on Banking and Real Estate Development Finance Law.

A development loan is designed to assist with the costs associated in building out a commercial or residential development project. Projects can include new build houses or apartments or refurbishment and conversions of existing properties. Development finance can cover the costs of a whole development project or be split across several phases. In some instances, the funds can also be applied to acquisition of the site or property as well as its future development.

This is the ratio used to measure the amount of debt financing being used to fund the development of a property compared to the estimated value of the completed development.  Each lender will have their own parameters which establish the maximum amount that can be lent.

The key advantage of having a collateral warranty in place is that it creates a direct contractual relationship between the contractor or consultant and a lender, allowing a lender to claim for losses should the contractor or consultant default and typically offer a lender step-in rights to enable the lender to ensure a development is completed if the borrower who has employed the contractor or consultant defaults on their loan.

A development exit loan can be used to repay outstanding development finance and are usually recognised as a type of bridging loan

These are usually offered to or obtained by borrowers once the buildings at a development site are ‘wind and watertight’ and the development finance loan is coming to an end and sales of the units that have been built won’t be completed before the term of the development loan expires. 

A development exit loan can also assist in releasing equity from a project that is nearing completion to fund the next project a borrower has in the pipeline.

Please click here to view details of our Business Law Pricing Information.

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