Power to Remedy is a contractual right that enables a lender, security trustee, or appointed receiver to intervene and correct a breach of contract or failure by the developer—such as unpaid invoices, health and safety violations, or planning breaches. This power is exercised to preserve the value or legality of the secured property and is typically activated when a borrower fails to act within a required timeframe. Costs incurred under the power to remedy are usually recoverable from the borrower, either directly or added to the loan facility. It plays a critical role in protecting stakeholder interests in UK property development finance transactions.
In practice, a power to remedy provision gives lenders and other secured parties a direct mechanism to protect a development where borrower inaction could threaten project viability, regulatory compliance, or asset value. As part of broader Legal Concepts & Obligations, it allows intervention before a problem escalates into a more serious default or enforcement scenario. It is often considered alongside Remedies for Breach, as both provide contractual routes for addressing failures to meet agreed obligations. Where remedial works or corrective action create additional expenditure, funding may in some cases be supported through a Cost Buffer Facility, helping ensure critical issues are resolved without unnecessary delay to the development programme.
View glossary entry