Property Finance

Property Lawyers

Specialists in Real Estate Finance Law

Our property lawyers manage a wide variety of real estate finance work, including bilateral and syndicated loans for the acquisition, construction, development and refurbishment of real estate assets.   Understandably, a good portion of the work from 2013 has involved loan restructuring, however, we are also seeing new loans made, particularly in the hotel and leisure sector, where we have a particularly strong borrower base.

GSC is also skilled in the tax aspects of real estate finance, and are particularly known for our:

• Broad mix of banks and borrowers: The team acts for a number of major lenders. However, we are equally likely to represent the borrowers. This gives us a strong understanding of the requirements of all parties, contributing to our reputation as practical, deal-making lawyers
• Work in the hotels and restaurants sector: We assist a number of major hotel owners in financing the acquisition, construction and development of hotels. We also act for a number of major fast food franchise owners, particularly companies operating large numbers (often 30 to 50), in all their property finance work
• Another key sector we have specialist expertise is nursing homes; working for the owners and operators of nursing homes handling all aspects of the real estate financing of homes in this highly regulated sector.

Islamic Law Finance

Our Islamic finance department will be able to advise you on a wide range of Islamic finance products including alternatives to the conventional mortgage known as a murabaha contract (fixed rate mortgage alternative) or a diminishing musharaka contract (variable rate mortgage alternative).

We can also advise on a number of other products including ijarah (leasing contract) and musharakah (joint partnership financing).

Islamic finance products are designed to comply with Islamic law and the industry has boomed since its introduction to UK markets in the 1980s. The main concept surrounding Islamic finance is the prohibition on usury (interest). However, Islamic law does not reject the notion of time value for money and financial institutions are therefore permitted a return. The return is usually achieved through risk sharing – financial institutions make a profit on a transaction as a reward for the risk they take in a customer. Alternatively, a financial institution can receive financial compensation as a result of forgoing other opportunities.

Islamic finance products are only available in relation to investments, acquisitions and transactions that adhere to Islamic principles. Therefore, dealing with anything haram (illicit) such as alcohol or gambling is strictly forbidden.

Covid-19 has impacted financial institutions worldwide, however the Islamic banking and finance institutions have managed to remain relatively unscathed. It is suggested that due to providing financing based on profit and loss-sharing, the system is less susceptible to financial crisis and distress. This was also the case in the 2008 global financial crisis.

If you wish to discuss Islamic finance products and the options available please feel to contact  us. We look forward to helping you with your Islamic finance needs.