Development Exit Finance

Refinance of Development Facilities Approaching Term

• Refinancing an existing development loan as it approaches expiry, replacing it with a facility sized to the post-completion value of the scheme. This is the core use case for development exit finance, and the conversation typically begins three to six months ahead of the original facility’s expiry date.

Sales Period Extension

• Providing the time needed to complete the sales programme on a finished or nearly-finished scheme. Suitable for developers who have achieved practical completion or are close to it, but whose original lender requires repayment before the natural sales period can play out.

Equity Release from Completed Schemes

• Releasing capital tied up in a completed scheme while sales progress, allowing developers to redeploy equity into the next project rather than waiting for the final units to sell. The facility is secured against the remaining unsold stock, with sales proceeds applied as units complete.

Avoiding Default Interest

• Refinancing a development facility before it tips into default, preserving the developer’s relationship with the original lender and avoiding the substantial cost of penalty interest rates. Where the original lender is unwilling or unable to extend, a clean refinance onto a development exit facility is often the most efficient outcome.

Cross-Collateralised Exits

• Structuring a single facility across multiple completed schemes, allowing developers with several projects in the sales phase to consolidate their short-term debt and simplify their lender relationships. Particularly relevant for developers with a portfolio of schemes reaching practical completion in sequence.