A clear understanding of the security available is fundamental for lenders and borrowers. To assist, CMS has launched an interactive International Guide to Real Estate Finance. This provides a clear and concise explanation of how a lender (local or foreign) can take security over real estate and options as to enforcement.
The Guide provides a detailed chapter for most European jurisdictions and is split into three parts:
- Mortgages - this section includes an outline as to direct security over real estate and how this security may be enforced;
- Security over Shares - real estate is often held in locally incorporated SPVs, and this section summarises the mechanics of taking security over the shares in these vehicles and enforcement of this alternative security;
- Leases - this section summarises typical occupational leases and legal issues which would be likely to impact upon the valuation and security of income.
The Guide is for anyone involved with or interested in real estate finance, either as a reminder for your own local and existing market(s) or as a useful introduction if you are considering lending or borrowing in European jurisdictions new to you.