An Injunction is a legal remedy granted by a court to either prohibit a party from taking a specific action (prohibitory injunction) or compel them to act in a certain way (mandatory injunction). In UK property development finance disputes, injunctions are often used to stop unauthorised construction, enforce restrictive covenants, or prevent the disposal of secured assets. It is a powerful enforcement tool that can be sought on an urgent basis to preserve legal rights or prevent irreparable harm during or after a breach of contract or planning regulation.
In UK property development finance, injunctions sit within Litigation, Disputes, and Enforcement, where they are used as urgent remedies to preserve legal rights during active disputes and prevent actions that could undermine a development scheme or security position. They are commonly sought to maintain the status quo where breach of contract, planning control issues, or threatened asset dissipation may cause irreparable harm. In practice, they are often considered alongside a Court Order, although injunctions are distinguished by their preventative, fast-moving nature. Within funding structures, they can also interact with capital stack governance, particularly where lenders rely on Veto Powers on Exit to restrict unauthorised disposals or protect collateral value.
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