EM Law | Commercial Lawyers in Central London
Funding agreements solicitors
In broad terms, a funding agreement is a legal document that outlines the terms, conditions and obligations of funding.
A funding agreement can operate on any scale, from very small and localised grants to extremely large grants to support major infrastructure projects.
Forward funding agreements
A forward funding agreement is an agreement where a purchaser provides funds to cover the costs of all the development as it progresses. This agreement is the core document that governs the relationship between the borrower and the developer. It contains parameters around how the development will proceed and the mechanics of how and when payments will be made to the developer. Many agreements will also cover the profit payment element of the development.
Speculative funding agreements
A speculative funding agreement is, in essence, the same as a forward funding agreement. The difference between the two is that with a speculative agreement, the development is not necessarily pre-let at the time the fund enters into the agreement. The funding institution here is taking more a risk, not knowing if the development will be occupied by a tenant.
For any questions, our funding agreements solicitor Anna Rabin can help you.