Deborah Rowntree writes about the potential effect of Brexit on Housing Finance. Clearly BREXIT will have an impact on the financial landscape and on the time the government has to devote to other items including for example updating building regulations following the Hackitt review and responding to consultations on the Social Housing Green Paper. There is still yet to be any agreement on the terms the UK will withdraw from the EU on 29 March 2019 and this continuing uncertainty makes it difficult to say currently exactly what amendments may be needed to UK loan documentation. Legislation is required in order to make sure the listing and prospectus rules remain the same in the event the UK leaves the EU and regulations have been laid before parliament to address this.
Concerns around loss of financial services passports for existing lenders into the UK may lead to an increased focus on loans from such lenders that extend beyond the date those passports may be lost and how that risk can be mitigated for both parties. However otherwise, English commercial contract law is not really impacted by EU law and upon any withdrawal, EU member states will continue to give effect to English law in the same way so changes to governing law clauses will not therefore be necessary. Any references to the EU or EU legislation will need to be updated in due course. We understand that the LMA is keeping its facility documentation under review as we progress towards withdrawal.