Document background
Forward Funding Agreements are essential documents in property development financing under English and Welsh law, typically used when institutional investors or funders wish to secure development opportunities at an early stage. The agreement sets out the framework for funding the construction of a property development, including staged payments, development obligations, and risk allocation between parties. It differs from traditional development funding as the funder typically acquires the land at the outset and funds the development costs throughout the construction phase. This type of agreement is particularly valuable in large-scale commercial or residential developments where early funding commitment is crucial for project viability.
