A possession order is a court order permitting a lender, typically a charge holder, to take possession of secured property after a borrower defaults on a property development finance loan. The lender must demonstrate breach of loan terms, such as non-payment or failure to comply with agreed covenants. Once granted, the order authorises legal repossession, enabling enforcement of the security. In UK property development finance, possession orders are commonly used to recover value from distressed or non-performing assets and may precede sale or appointment of a fixed charge receiver.
A possession order is a court directive enabling a lender or charge holder to take legal possession of a secured property following borrower default under a property development finance facility. It is typically sought after a material breach such as non-payment or covenant failure and provides the legal mechanism to enforce security and control the asset. Within the Litigation, Disputes, and Enforcement framework, it commonly arises alongside Judgement Debt proceedings where enforcement action is escalated through the courts. In development finance structures, it is most frequently associated with Senior Debt 1st Charge positions where lenders seek to recover exposure through repossession and asset realisation.
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