Jurisdiction(s):
United Kingdom

Comprehensive guide to real estate finance term sheets: drafting, negotiation, due diligence, key provisions, borrower/lender positions, LMA precedents, intercreditor, mezzanine and hedging

Published by a LexisNexis Banking & Finance expert

Practice notes

This Practice Note serves as a practical, step-by-step guide to preparing and negotiating a term sheet for a real estate finance (REF) deal, while signposting related materials and resources. It summarises common REF structures, flags precedents that can act as a useful baseline for a REF term sheet, weighs up the usual borrower and lender viewpoints, and sets out an overview of the key areas, headline provisions and negotiation points, together with pragmatic considerations to bear in mind when drafting or negotiating a REF term sheet.

For fuller direction on the role and function of term sheets in loan transactions, and the types of provisions they typically contain, see the following Practice Notes for in-depth guidance:

Term sheets in lending transactions
How to draft and negotiate a LMA investment grade term sheet
Term sheet and mandate phase in loan transactions

The Banking and Finance Glossary provides added explanations and detail on commonly used terminology within the finance sector, and the Loan transaction collection offers an overview of the different phases of a loan transaction, with links to relevant and appropriate checklists, detailed practice notes and established precedents, as applicable and where appropriate.

Types of REF transactions

REF transactions most commonly...

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Web page updated on 21/05/2026

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