Development Exit Finance
Development Exit finance helps repay any outstanding finance against a property development once the project is complete.
Release capital in order to move on to your next project quicker
Lower The Cost
Refinance from expensive Development Finance on to a lower payment term. Rates from 0.44% a month.
Helping Your Development Exit Finance Needs
The purpose of Development Exit finance is to help repay any outstanding finance against a property development once the project is complete.
If your Development Finance term is coming to an end, and your development hasn’t fully sold as expected, development exit finance can be used to reduce finance costs to a lower rate. This is type of product is becoming increasingly popular as rates drop, with development exit finance rates starting from 0.44% per month.
The products we offer can be utilised to release capital from a development before sales complete, meaning you can move on to your next project. Funds can be arranged very quickly where fast completion is a necessity in order to start your next development.
How Much Can I Borrow?
We can facilitate Development Exit finance from £100,000, with no maximum loan. Typically, we can arrange up to 75% loan to value (LTV) on residential or mixed use developments and can potentially push to 80% LTV for certain residential projects.
The total amount you can loan is subject to the value of the security offered and the planned exit route.
In general terms, the higher the LTV required, the higher the interest rate will be.
How Much Does It Cost?
Our rates start at 0.44% per month and is provided by our panel of Bridging lenders.
Most lenders will typically charge an arrangement fee, which varies depending on the lender, loan amount and LTC. You can usually expect an arrangement fee of 1-2%, with the fees of 1% generally reserved for larger loans. Generally speaking there are no early repayment charges or exit fees on these types of loans, allowing you to repay whenever suits you with no financial penalty.
Development Exit Finance is cheaper than development finance, this is because property development can be a high risk business, with the risk of delays and unforeseen issues common place. This type of lending takes advantage of the lower level of risk associated with a project as it nears completion. Because of this, a new lender is usually happy to offer a lower interest rate to the borrower.