Development, structures and funding

Development, structures and funding guidance:

Assignment by the tenant The more important a particular tenant is to the viability of a particular development, the more likely that the landlord will insist the tenant...

Practice Note

An inherent defect may become apparent several years after the tenant has taken over the property. This may be long after: • the building contractor’s liability under the...

Practice Note

Collateral warranties The typical terms of a collateral warranty provided to a tenant by a consultant, contractor or sub-contractor deal with: • compliance with...

Practice Note

Rent commencement date Agreements for lease generally specify that the tenant is obliged to take the lease on, or within a short period after, certification of practical...

Practice Note

A developer has a far greater prospect of securing both: • development finance from a funder to fund the costs of the development works, and • a commitment from an...

Practice Note

Defects Defective workmanship is a feature of virtually every construction project. Very minor defects will be dealt with by a snagging list (see: Snagging list) but...

Practice Note

An agreement for lease with development obligations can give rise to a variety of issues, eg the right to claim an extension of time, measurement, whether...

Practice Note

Certification of practical completion under the agreement for lease (usually prompted by certification of practical completion under the building contract) triggers the...

Practice Note

Delay in completion of the developer’s works can be of far greater concern to a tenant than, eg whether the works are in accordance with the specification or the...

Practice Note

The tenant will appoint its own surveyor and other consultants to monitor the construction works and to represent the tenant’s interest in relation to various...

Practice Note

Insuring the developer’s works As between the developer and the tenant, the developer should covenant: • to ensure that the developer’s works are insured against usual...

Practice Note

If the developer fails to achieve practical completion by the target date set out in the agreement for lease, the tenant will expect to receive damages for the lost...

Practice Note

In some cases, a developer and a tenant agree that the rent under the occupational lease will be a specified figure. However, in many other cases, the annual rent is...

Practice Note

As-built drawings, health and safety file, etc In the context of a lease of an entire building, the tenant is likely to have both contractual and statutory liability for...

Practice Note

Under an agreement for lease, the tenant’s obligation to take the occupational lease only arises once the developer’s works have been completed and are fit to be taken...

Practice Note

Even if a specialist subcontractor is not providing any significant degree of design input in relation to its particular element of the developer’s works, it may well be...

Practice Note

In some respects, the only real value in any contractual duty under an appointment or obligation under a collateral warranty lies in the professional indemnity insurance...

Practice Note

A funder will often only agree to fund a development if it has been pre-let. The existence of the pre-let(s) comforts the developer’s funder that its lending position is...

Practice Note

Plans, specifications, etc In most cases, the tenant will apply its own bespoke fit-out to the developer’s finish condition in which the premises is delivered at...

Practice Note

Developer default Granting a tenant the right to terminate the agreement for lease in the event of default by the developer has potentially disastrous consequences for...

Practice Note

This Practice Note: • discusses the development of the large scale private rented sector (PRS) • considers the Government’s incentive package for Build to Rent (BTR) in...

Practice Note

The two most common methods available to challenge a planning decision are judicial review and statutory review. See Practice Notes: Scope of judicial review in planning...

Practice Note

On every construction project which requires external funding, the lender will appoint its own team of lawyers to draft and/or negotiate the various documents. Part of...

Practice Note

Agreements made under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) (formerly section 52 agreements), also known as 'planning obligations' and ‘s 106...

Practice Note

This Practice Note discusses the formation of a limited partnership under the Limited Partnerships Act 1907 (LPA 1907). It also covers, among other things, the...

Practice Note

What are the key features of real estate finance? This Practice Note focuses on what is thought of as traditional real estate finance ie lending against the cash flow...

Practice Note

When providing finance for any development or construction project, the lender (or funder) and its advisers will use various methods to protect the lender’s position. The...

Practice Note

It will almost always be advisable for the partners of a limited liability partnership (LLP) to enter into a limited liability partnership agreement in order to avoid the...

Practice Note

This Practice Note discusses the provisions of a limited partnership agreement for limited partnerships formed under the Limited Partnerships Act 1907 (LPA 1907). It...

Practice Note

Why have an oversail licence on a construction project? Under English law, the freehold owner of land will usually own the air space above their land unless the transfer...

Practice Note