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Development Exit Finance
Complete Your Project Effectively.
Have you completed or have you decided to refinance your development loan? You are in the right place. We offer development exit finance!
Development exit loans are simple funds that allow developers to refinance their development loan. Refinance can take place at any stage after the development is complete. Developers never want to sell their units spontaneously, nor do they want to pay extra fees with their existing lender. Both options can errode profits. Therefore, Developer exit finance can provide the time needed to market and sell the units. With flexible terms and interest accruing daily, you can pay back the loan quickly.
Case studies
Some of our projects
Land Bridge for 220 Apartments
£10,400,000
Airspace Development
£1,200,000
CBILS Refinance for 4 Detached Houses
£3,400,000
Enquiry to Completion in 4 weeks
£3,600,000
our team
team of experts
FAQs
Common Questions & Answers
What documents are required for development exit finance?
The primary underwriting documents required for development exit finance include a certified schedule of works, a current RICS valuation report for the completed site, relevant building warranties, and a clear marketing or sales strategy. Incoming lenders require comprehensive documentation to verify that structural build risk has ceased and that the asset is positioned for a clean disposal or refinance.
To ensure a swift underwriting process, a well-compiled application should contain:
- Building control completion certificates or initial structural sign-offs from an approved inspector, such as the NHBC or Premier.
- A formal RICS valuation report confirming both the current open-market value and the estimated gross development value of the finished units.
- An up-to-date schedule of remaining works detailing any minor cosmetic or landscaping requirements left to fund.
- A verified marketing strategy containing local estate agent listings or evidence of exchanged pre-sale contracts.
- A comprehensive asset, liability, income, and expenditure summary for all corporate directors providing a personal guarantee.
Can I get same-day development exit finance?
No, obtaining same-day development exit finance is not feasible in the UK commercial market, where realistic express timelines average between three and seven working days. While a specialist broker can typically secure a formal Decision in Principle (DIP) within hours of an enquiry, physical property asset transactions cannot be completed within a single day.
The primary operational bottlenecks that prevent a 24-hour funding reality include:
- Securing an official payoff and redemption statement from your incumbent development lender.
- Instructing an independent surveyor to carry out a physical site inspection rather than relying on automated desktop valuations.
- Completing mandatory legal underwriting to register a fresh first legal charge over the real estate.
Any marketing framework promising 24-hour completion usually applies to simple residential equity release, whereas refinancing of multi-unit or commercial sites requires essential legal and structural due diligence.
Are there no-fee development exit finance products?
No, completely fee-free development exit loans do not exist within the institutional property finance market. While selective marketing may highlight options with no arrangement fee, bridging finance, or zero exit-fee development loans, lenders invariably adjust other parameters to protect their margins.
When analyzing alternative fee structures, the capital costs typically shift in the following ways:
- Eliminating the standard 1% to 2% facility arrangement fee usually results in a higher monthly interest rate applied across the term.
- Removing redemption fees or exit charges is common among tier-1 lenders, provided the facility is redeemed within the agreed loan term.
- Absorbing upfront application costs generally means these setup expenses are rolled directly into the gross loan facility, compounding interest over time.
A professional assessment involves evaluating the total cost of credit over your projected disposal window rather than focusing on the absence of a single upfront fee.
What are the interest rates for developer exit finance?
Current development exit finance interest rates typically start from 0.55% to 0.85% per month for prime residential assets, reflecting the reduced risk profile once construction is complete. Because the physical build phase is complete, these rates represent the lowest developer exit funding cost when compared with standard ground-up development debt.
With the Bank of England base rate currently held at 3.75%, market pricing is influenced heavily by leverage brackets:
- Borrowing at a loan-to-value ratio below 55% commands the lowest institutional interest margins.
- Stretching leverage requirements toward 75% or 80% loan-to-value increases the risk premium, pushing monthly financing rates toward 0.95% or more.
- Utilizing a rolled-up interest property exit facility defers monthly cash commitments, compounding the monthly rate into a final redemption payment upon unit disposal.
Can I get large development exit finance for multiple projects?
Yes, you can secure large-scale multi-site development exit finance to consolidate several separate building projects under a single, unified debt structure. Utilizing a portfolio development exit loan allows corporate property developers to pool assets, reducing administrative friction and streamlining portfolio cash flow.
Lenders facilitate multi-project facility consolidation through specific legal mechanisms:
- Cross-collateralised developer debt structures allow surplus equity from a finished scheme to act as additional security for another nearby asset.
- An aggregate valuation property finance model assesses the cumulative portfolio strength rather than applying individual loan-to-value limits to each site.
- A blanket charge is registered over the entire asset collection, allowing for a structured release of individual units as they are sold off to clear the debt.
This approach is highly effective for refinancing facilities for blocks of flats or scattered residential developments, replacing disjointed funding lines with a single coordinated facility.
