Useful Links
In This Section
Due Diligence Audits For Banks And Other Financial Institutions
There are various legal factors that have to be considered when it comes to carrying out due diligence when providing finance for a development scheme. It is therefore advisable to make sure you have an experienced law firm on your side to ensure you are covered in every area. At Blackstone Solicitors, we are able to advise many different types of lender, no matter the complexity of the circumstances surrounding the lending requirements for a development scheme.
For more information about how our team of construction solicitors can help you, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
“I received very good service and advice, given to me on a week by week basis. I would strongly recommend Blackstone”
– Paul 
How we can help
Development finance can be considered to be one of the more risky areas of lending. It is therefore essential that a lender undertakes thorough due diligence at an early stage in the process.
We are here to help with all the stages of due diligence regarding development finance of any amount. Be it a single local plot or a site on a much larger scale, we will work with you to make sure everything goes to plan.
Friendly yet direct, our team is passionate about every case we take on, and we believe the entire process requires constant communication. We will, therefore, guide you through the technicalities involved, offering expert advice from start to finish.
Why legal help is important
Although each development scheme will be different and as such will have different financing requirements and thus varying levels of due diligence, there are common features across the industry.
Due diligence should not be limited to the viability of a site or development. A lender should also be familiar from the start of the process with the planning and construction aspects of the project and should review all relevant documentation. Depending on the size of the project, the lender should have access to all the construction documents entered into by the borrower and should be in a position to review and comment upon them. Additionally, these should include full copies of planning permission along with any other planning agreements and also initial building control documents. Details of the person providing completion certification upon practical completion will also be required.
If the development is residential, lenders will want to be satisfied as to the structural warranty that the developer will be providing to the end purchasers. In addition, the lender should have a high expectation of the competency of the contractor and other key professionals and so should exercise control over the project team to be appointed by the developer.
Security is another issue to consider and collateral warranties are a good mechanism for this. These collateral warranties should allow for the lender stepping into the developers’ shoes in certain circumstances, such as insolvency or where the terms of the funding agreement have been breached.
Further, establishing the full extent of the title and carrying out a detailed investigation of all relevant searches is essential.
Our Services
Our team prides itself on being able to meet every need of each of our clients. We are willing to go the extra mile when other firms are not, ensuring our clients are given the very best opportunity of getting the outcome they are after. Get in touch to see how our specialist team can help you with the due diligence process prior to providing finance to a developer.
Contact us
Speaking to one of our solicitors is easy, simply call us on 0345 901 0445 or allow us to get in touch with you by filling in our online enquiry form. Our services are available to clients throughout the UK, including Manchester, London, Cheshire and Chester, as well as to those living abroad.
