All developments are, of course, physically unique and the way in which each is legally structured will differ from one development to another accordingly. Factors that will influence the structuring include the mix of residential and/or commercial units.
When undertaking a development, one of the essential aspects of which the developer will need to be certain is that prospective tenants and purchasers, of both commercial and residential units in the development, will be acquiring interests which, in legal terms, are both readily saleable – making sure not to unnecessarily restrict the size or composition of the market to which the developer is able to sell – and also readily able to be used as collateral in support of loan finance. At the same time, the structuring must properly reflect the physical nature of the development and accommodate specific matters and constraints such as phased completion, for example, which may mean that the necessary infrastructure will not be in place to service the whole development when the first sales of units in the development complete.
It may be said therefore that the key to success for any developer in Jersey, be it a large multi-jurisdictional developer or a small local developer, is the effective combination of the legal ‘building blocks’ which are available under Jersey law and which I briefly discuss below.
