Institutional investors continue to fund residential schemes during construction. The structure of the funding agreement determines how cost overruns, delays and defects are shared.
- Price adjustments for cost overruns and savings
- Practical completion and the standard of the finished homes
- Developer guarantees and security
- Step-in rights if the developer fails
- Rental guarantees during lease-up
Each term interacts with the others, and investors should review them together rather than one at a time.
This publication is general information, not legal advice. It may not reflect later developments. Contact a lawyer about your circumstances.