Red flag, green light: Resolving a critical leasehold challenge
Large-scale developments rarely proceed without obstacles, but with the right expertise, even serious legal threats can be defused before they cause real damage.
In one recent case, Westcor supported a major client in overcoming a potentially disruptive leasehold claim during the critical construction phase of a high-value mixed-use development.
The challenge
Our client, an ambitious developer, was transforming a vacant site into a combination of housing, hotels, and offices; a complex project backed by comprehensive title insurance, reflecting its scale and importance.
Midway through construction, a third party came forward asserting leasehold rights over a section of the property. If upheld, the claim could have halted work on part of the site, disrupting timelines, escalating costs, and threatening the project’s overall viability.
The response
Recognising the urgency, Westcor immediately collaborated with the client’s legal team to analyse the claim. A deep dive into the lease documentation revealed a crucial clause: while the third party did possess certain rights, they were obligated not to “unreasonably withhold” consent for development.
This became the basis of our strategic approach. The claimant initially sought a financial settlement to grant consent. Drawing on our expertise, we advised a firm, yet pragmatic counteroffer, understanding that drawn-out legal proceedings would be both costly and time-consuming.
Following a period of focused negotiation, we reached a resolution that avoided litigation, protected the development schedule, and limited financial exposure.
The outcome
Thanks to swift action and strategic guidance, our client continued development without further legal interruption. The settlement preserved both momentum and budget, demonstrating how title insurance, paired with expert counsel, can transform a serious risk into a manageable issue.
This case demonstrates that in complex developments, having the right partner enables you to respond rapidly, negotiate effectively, and protect your investment when challenges arise.
