Our expert advisers will help you find the best deal on your development exit finance.

We specialise in providing development exit finance solutions.

Development exit finance is a type of a bridging loan which has been introduced in the past 5-10 years to enable developers to move from (relatively) expensive development finance on to a short-medium term finance facility to enable them to sell the units which have been built.

Our panel of development exit finance lenders provide high quality and prompt decisions. Indicative development exit finance terms will normally be provided within 24 hours. An agreement in principle for development exit finance can normally be expected within 48 hours, once the initial application form has been processed.

Our advisers are ex-bankers and property investors.
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Frequently asked questions

Got a question? We have the answer.

How much can I borrow with a development exit finance loan?

Development finance loans tend to start from around £200k, up to £200m, above this level bespoke funding is required, but can be accommodated.

How does a development exit loan work?

A development finance exit loan is normally underwritten on the capability of the developer to sell the units. What this typically will look at is the marketing plan for the property, how quickly the units have been moving, the real value of these units and the capacity of the market to buy these units. The lender will evaluate all of these items and will typically provide agreed terms which clearly outline the timeline which they expect the units to move by.

When do I need to pay the development exit finance facility back?

Development exit finance is normally repaid as the units sell. This means that the amount of debt which is being taken on will start at a higher level, then reduce down as the developer sells units. The developer will normally receive part of the proceeds of each unit sale as well, at an agreed split. The loan will be fully repaid by the time that most (normally around 85% of the units have been sold).

How long will it take to obtain funds for my development finance facility?

Development exit finance facilities can be secured very quickly, within a couple of weeks of initial enquiry.

How long can I have a development exit finance loan for?

Development exit finance loans typically start from a minimum of 12 months, with maximum terms of around 3-5 years depending on the type of facility that is required.

What rates can I expect to pay for development exit finance loans?

Development finance facilities start from around 0.4% per month at around 75% LTV, this will take into consideration the number of units, the size of the facility and local market where the assets are owned, plus acceptance fees, plus solicitors fees, plus valuation fees.

How long can I get a development exit finance loan for?

A development exit finance loan is normally a relatively short term loan, with normal terms ranging from 12-36 months depending on the size of the construction product. A development exit finance facility is a type of mortgage and the lender will take a first charge over the property and normally take out the development finance lender.

What are the costs associated with property development exit finance loans?

Development Exit Finance Costs will vary depending on the loan to value (LTV) that the developer requires, typically the higher the loan amount against the gross development value the higher the cost of funding. Rates typically start at around 0.4%% per month.

Additional costs that investors and developers need to consider include:

  • Acceptance fees.
  • Broker fees.
  • Exit fees.
  • Valuation fees.
  • Legal fees.

What criteria do lenders evaluate when underwriting as development exit loan?

The lender will underwrite the development exit facility and they will be evaluating the following elements:

  • Gross Development Value – the total value of the site.
  • Purchase price.
  • Build costs – the cost of the developer building the proposed development.
  • Level of exposure that the developer has.
  • Sales data, how quickly the units are selling.
  • Forecasts – how quickly it is anticipated that the units will be sold within.

The lender will then provide terms based upon a loan to gross development value (LTGDV), this is the maximum amount that they will lend against the future value of the site, most lenders will typically lend up to 70-75% LTV.

Will a lender review the progress of the development in terms of sales?

The lender will review the facility throughout the term and the developer will need to provide a regular report which updates the lender on the progress that is being achieved with unit sales. Obviously if units are not shifting then there are a couple of changes which the developer can implement:

  • Change agents – perhaps the existing agent has gone stale on the site, and therefore a new agent may re-invigorate sales.
  • Reduce prices – if units are not shifting the developer may need to reduce the prices that they are charging for the units. The market may have shifted during the time that the development has taken to build and the developer may not be aware of current sale prices in the local area.

Will the lender take a first charge over the development?

The development exit finance lender will normally take a “first charge” over the development site, this means that if the terms of the loan are breached that the lender will have the right to enforce their charge, meaning that they can ultimately take ownership of the property, much like a mortgage lender can if you do not keep up repayments.

Why use development ext finance loan?

A development exit finance loan can enable a developer to secure more time to sell their units once a development is completed. This can save them money compared to incurring default interest rates from a development finance lender. Most development exit finance lenders will provide indicative terms relatively quickly, with 24-48 hours.

What are the typical rates for development exit loans?

Development finance rates have reduced over the past few years, depending on the size of the development facility required it is possible to secure development finance facilities from around 0.4% per month.

What is a property development exit finance loan?

Development Exit Finance is a type of a bridging loan which has been introduced in the past 5-10 years to enable developers to move from (relatively) expensive development finance on to a short-medium term finance facility to enable them to sell the units which have been built.

What types of projects can I use a development exit finance for?

Development exit finance can be used for the following types of developments:

  • Office to residential development exit finance.
  • New build development exit finance.
  • Student accommodation development exit finance.
  • PRS development exit finance.
  • Large HMO development exit finance.


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