The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Real estate finance (REF) transactions are either investment finance transactions or development finance transactions, depending on whether the property is being purchased as an investment (ie it is already generating revenue) or whether the property is being purchased to be developed. Development finance transactions are more complex than investment finance transactions although they are less commonly encountered. For a general introduction to real estate finance development facilities, see Practice Notes:
Introduction to real estate finance—the lending structure, and
Real estate finance—development facilities—key features
The Loan Market Association (LMA) has produced a 'standard form' document for use in real estate finance development transactions together with a helpful user guide, both of which are available to members of the LMA—see the Single Currency Term Facility Agreement for Real Estate Finance Development Transactions (LMA REF Development Facility Agreement) and user guide on the LMA website. Real estate finance transactions can vary considerably and the LMA recognises in its user guide that it is difficult to produce a true 'standard form' document for real estate finance development transactions. The user guide highlights the fact that the document should only be used as a starting point for a transaction and that it will need to be tailored to the particular transaction structure and commercial agreements between the parties.
The LMA has also published standard form
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.