Development loan facilities cover the financing arrangements that allow a developer to draw funds across a project’s life, from initial site purchase through forming planning permissions to construction and phased completions. A solicitor drafts and negotiates the facility agreement, security package and related documents, coordinates drawdown and repayment mechanics, and handles associated hedging and intercreditor terms. They also supervise title due diligence, planning consents, and enforce security if a borrower defaults, coordinating with lenders and project advisers.
What a solicitor handles in these matters
The solicitor structures the loan, negotiates terms such as advance rates, interest margins, covenants, and events of default, and coordinates the security stack (charges over land, collateral, and guarantees). They draft and review the facility agreement, security documents, and ancillary deeds, ensure perfection of security with filings, and manage intercreditor and step-in rights, drawdown schedules, and variations or novations as the project progresses.
