Coronavirus (COVID-19)—implications for real estate finance transactions
Coronavirus (COVID-19)—implications for real estate finance transactions

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—implications for real estate finance transactions
  • Property values and valuations
  • Property inspections for valuations
  • Property values and loan to value
  • Rental income and cashflow in investment facilities
  • Requests for rent holidays and rent reductions
  • Non-payment of rent in commercial leases—protections for tenants
  • Development facilities
  • Residential real estate finance and pre-sales
  • Insurance
  • More...

Coronavirus (COVID-19)—implications for real estate finance transactions

This Practice Note sets out the key issues which are relevant to real estate finance during the coronavirus (COVID-19) outbreak.

For information on the general issues arising from the coronavirus outbreak that are likely to be of interest to banking & finance lawyers in general, see Practice Note: Coronavirus (COVID-19) implications for Banking & Finance lawyers and, in particular Force Majeure, Execution of documents, Brexit, LIBOR, Regulation for banking lawyers, Restructuring and Corporate.

For information on general lending issues arising from the coronavirus outbreak, see Practice Notes: Coronavirus (COVID-19)—implications for lending transactions and Coronavirus (COVID-19)—Banking & Finance frequently asked questions.

The impact of coronavirus on the real estate finance (REF) market is likely to go to the heart of most transactions, affecting property values, rental cashflow and construction.

Property values and valuations

The focus of a real estate finance transaction is the property and its value. Lenders will obtain a valuation of the property as a condition precedent to the first drawdown and then will typically have the right to receive valuations of the property at the cost of the borrower at regular intervals throughout the life of the loan—for example, annually and then at any time when a default is continuing or is likely to occur as a result of that valuation.

For information on valuations, see Practice Note: Real estate finance—valuers and

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