Development Exit Finance
 

From £100,000 to £25,000,000

Up to 80% Loan to Value

No minimum term

Modern Housing

If you are looking to source development exit finance on residential or commercial property in the UK, we can help

How can we help?

  • Development Exit Finance from £100,000 to £25,000,000

  • Up to 75% loan to value

  • Terms up to 36 months

  • Loans up to 100% of Development Finance cost

  • Finance with no exit or early redemption fees

  • Finance options for England, Scotland, Wales and Northern Ireland (We can also source finance for projects in Ireland)

  • Complex cases are always considered

  • Freehold or leasehold property

  • Adverse credit accepted.

  • Options for inexperienced developers

  • Offshore SPV’s

  • Term to 36 months

  • Completion usually within 2 to 4 weeks

  • Finance for new build, conversion or refurbishment developments including mixed-use and student accommodation

  • We can help source finance for land, commercial to residential conversions, unusual assets such as care homes, golf courses, places of worship, petrol stations, fisheries, air rights (with acceptable security) and charities

What is a Development Exit Loan?

Development exit finance is used to replace the original development finance. Development exit finance is cheaper, allows the developer more time to sale and raises extra funds for subsequent projects.

Development exit finance, also known as sales period finance, is a developer exit product created to improve a developers cash flow, relieve pressure to sell units at a discount and reduce finance costs.

When is Development Exit Finance used?

Exit finance should be used as soon as a development is complete and the development has not completely sold. By putting in place the exit finance a developer can extend the time they have to sale.

The product can also be used to increase borrowings prior to sale of a site in order to free up cash to allocate to a new project.

Advantages of Development Exit Finance?

  • Lower rate of interest compared to initial development finance

  • Extends the sales period

  • Additional funds raised to allow a developer to move on to the next development project

  • Rolled up interest meaning no monthly payments to make

  • Repaid only when all units have sold

What are the fees to pay for Development Exit Finance?

There are some costs to consider when applying for Development Exit Finance:

  • Arrangement fee: Most lenders charge an arrangement fee. This varies depending on the size of the loan you need and the loan-to-value (LTV) ratio. Generally speaking, it is between 1-1.5% of the gross loan amount. 

  • Valuation fee: In just the same way that a lender has to check a property’s value when you apply for a remortgage, your lender needs a new valuation of your development project to be carried out for the exit loan. You can use the same surveyor as before so this may help to keep your costs lower.

  • Legal costs: The legal aspect of the transaction needs to be carried out by a solicitor and their legal fees are your responsibility.

  • Interest rate:  The interest is usually rolled up so that you don’t need to worry about making monthly payments. There are options for serviced interest. 

Case Study