The secured lending team, led by Ray Oshry, was instructed by a bank client in a deal involving a loan against an office block that was being converted into more than 100 flats. A significant feature of this transaction was that the developer had not yet obtained the building control completion certificate or dealt with some of the pre-occu- pation planning conditions, and as a result the warranties had not yet been issued. Had these issues been known earlier then a more sensible timeframe for completion could have been advised. In these circumstances the team had to take steps to ensure that the lender was comfortable with the warranties being issued, and the pre-occupation planning conditions being satisfied, after drawdown which took place shortly after the
building control completion certificate was issued.
The team were also involved in finalising the loan documentation, providing for these matters to be conditions subsequent to drawdown within a time period that the lender felt was a reasonable period to allow. In the absence of this resolution, it is unlikely that a project like this can be completed, with the developer incurring on-going costs in obtaining expensive finance as an alternative.
ray.oshry@haroldbenjamin.com
Connect with Ray on LinkedIn
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