The Client
A construction sector client involved in the sub-purchase of a property with the benefit of planning permission for the construction of 8 high-end residential units in a desirable area.
The Challenge
The client required legal support for the property purchase and advice on a release of restrictive covenants benefitting The Crown. The transaction was time-sensitive, with a swift exchange required. The deposit monies and development funding were loaned by two prominent development lenders, secured by debentures and a priority agreement.
A key challenge arose when the solicitors acting for the lenders were only instructed following the exchange of contracts, just over a month before the scheduled completion date. This created a compressed timeline for legal coordination and execution and involved corporate support from our Corporate team.
Our Approach
Herrington Carmichael’s team worked closely with all parties to ensure the transaction was completed on the completion date. The team navigated:
- The covenant release process with The Crown.
- Coordination with the development lenders and their legal representatives.
- Project management of the debenture and associated security documentation.
- Tight timelines between exchange and completion, requiring proactive communication and a creative legal approach.
The Outcome
The transaction was successfully completed within the planned timeframe, despite the late instructions of development finance representatives. The client was able to draw down on the multiple facilities and proceed with building out the development.
The Team
The team was led by Tim Hardesty with support from Tomos Diment and Michelle Lamberth.
