The Power to Dispose of Chattels allows a lender, receiver, or administrator to lawfully remove, sell, or dispose of tangible moveable assets—such as equipment, tools, or furniture—left on the development site. These rights are typically granted in legal charge documents or under enforcement powers when a borrower defaults. The goal is to prevent obstruction of the lender’s ability to repossess, sell, or continue development. Disposal proceeds may be used to reduce the borrower’s debt. This power is a key enforcement mechanism within property development finance in the UK, especially on distressed or partially completed schemes.
In practice, the Power to Dispose of Chattels becomes particularly important where a stalled or insolvent development contains abandoned materials, plant, machinery, site cabins, or other assets that could delay enforcement or redevelopment activity. By enabling the orderly removal or sale of such items, the power helps preserve site security, maintain project momentum, and support the recovery strategy of lenders and insolvency practitioners. It also reduces the risk of ongoing storage, maintenance, or liability costs attaching to assets that no longer contribute to the scheme’s completion. As part of the wider framework of Legal Concepts & Obligations, it provides a practical mechanism for protecting value and facilitating efficient asset realisation following borrower default.
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