Refinancing solutions for completed developments, replacing construction finance while units are sold or let, with lower rates than development loans.
Development exit finance bridges the gap between completing construction and selling or letting the finished units. It replaces your development loan at practical completion, typically at significantly lower interest rates, giving you time to achieve optimal sales prices rather than accepting reduced offers under funding pressure.
This product is essential for developers who have completed their build but haven't yet sold all units. Rather than extending expensive development finance or facing pressure to sell quickly at reduced prices, exit finance provides breathing room with more competitive rates suited to a completed, income-generating asset.
Development exit solutions include both single facilities covering all units and individual unit releases as sales complete. Deals can be structured to match your sales timeline, whether selling immediately or holding some units as rental investments.
Exit finance available once construction complete and units ready for occupation. PC certificate from architect or contract administrator required.
Rates drop significantly (typically 30-50%) as risk profile improves with completed asset. Lenders comfortable with finished stock vs construction risk.
As units sell, lender releases their charge for agreed repayment amount. Reduce loan progressively while retaining flexibility on remaining units.
Understanding the right scenarios ensures you're using this finance type strategically.
Completed scheme awaiting sales. Exit finance provides time to achieve optimal prices without development loan pressure.
Replace expensive development finance with lower-cost exit facility at practical completion.
Sell some units immediately, hold others as rentals. Exit finance accommodates mixed exit strategies.
When market conditions suggest waiting for better prices, exit finance provides holding capacity.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Monthly Interest Rate | 0.5% - 0.75% | 30-50% below dev finance |
| Arrangement Fee | 1% - 1.5% | Lower than development |
| Exit Fee | 0% - 1% | Many don't charge |
| Valuation | £1,000 - £3,000 | Completed units valuation |
| Legal | £2,000 - £4,000 | Refinance legal costs |
| Unit Release Fee | £250 - £500 each | Per unit released on sale |
Reach practical completion with PC certificate from architect/CA.
Apply for exit finance with completed scheme details and sales strategy.
Valuation of completed units at current market value.
Replace development loan with exit facility at lower rate.
Sell units progressively, releasing charges as sales complete.
| Aspect | Development Exit Finance | Alternative |
|---|---|---|
| Interest Rate | 0.5-0.75% monthly | Dev finance: 0.9-1.2% |
| Risk Profile | Completed asset | Construction risk |
| Sales Pressure | Time for optimal prices | Pressure to sell fast |
| Flexibility | Unit-by-unit releases | Full repayment required |
Exit finance is typically available at practical completion, when the building is finished and units are ready for occupation. Some lenders will consider exit finance slightly earlier if the remaining works are minor. You'll need the practical completion certificate from your architect or contract administrator.
Development exit rates are typically 30-50% lower than development finance rates. Where development finance might be 0.9-1.2% per month, exit finance is often 0.5-0.75% per month. The exact saving depends on the completed scheme quality, location, and sales evidence.
Yes, most exit finance facilities allow individual unit releases. As each unit sells, the lender releases their charge on that unit in exchange for an agreed repayment amount. This allows you to reduce the loan progressively while retaining some units for longer if needed.
Exit finance can accommodate mixed strategies. You can sell most units to repay the exit loan while refinancing retained units onto buy-to-let mortgages. Some lenders will even structure the exit facility to convert automatically to term lending on units you wish to retain.
Available at practical completion when building finished and units ready for occupation. PC certificate from architect or contract administrator required. Some lenders consider slightly earlier if remaining works are minor.
Typically 30-50% lower rates. Development finance: 0.9-1.2% monthly. Exit finance: 0.5-0.75% monthly. Exact saving depends on completed scheme quality, location, and sales evidence.
Yes, most facilities allow individual unit releases. As each unit sells, lender releases their charge for agreed repayment. Reduce loan progressively while retaining some units longer if needed.
Exit finance accommodates mixed strategies. Sell most units to repay exit loan, refinance retained units onto BTL mortgages. Some lenders structure facilities to convert automatically to term lending on retained units.
Dedicated development exit finance specialists with deep market knowledge.
Access to an extensive panel of specialist lenders.
Adhering to strict professional and ethical standards.
Proven track record in property finance.
Our local specialists understand the property market in your region and can provide tailored advice.
Specialist funding for ground-up construction and major refurbishment projects, providing flexible f...
Fast, flexible short-term finance for commercial property transactions with decisions in as little a...
Specialist mortgages for Houses in Multiple Occupation, designed for landlords maximizing rental yie...
Second charge lending that sits behind your primary mortgage, unlocking additional equity for proper...