Development exit finance to roll off your development loan

How the finance works

We refinance the outstanding development loan onto a facility secured against the finished scheme and priced for completed stock rather than a live build. Because build risk has fallen away, the new loan is usually cheaper and longer than the maturing development debt. The facility is sized against the gross development value of the completed units, and where the scheme has revalued on completion there may be room to release some of the developer's equity back out. As units sell, each sale partially redeems the facility, so the loan amortises down over the sales period. Interest is normally retained or rolled up, so cash flow is not drained by monthly payments while you sell.

Which lenders back it

Development exit is its own niche, owned by specialist bridging and development lenders who price completed-scheme risk and are comfortable with part-and-part redemptions as units sell. The right lender depends on the scheme size, the number of remaining units and how the original development loan is structured. We are an introducer, not a lender, and we know which desks move fast enough to refinance a development loan before it tips into default rate, and which offer the cleanest part-redemption terms so each sale releases the right slice of the facility.

The exit

The exit is the sale of the remaining units at their local market prices. We evidence it with comparable sales for the completed scheme, the units already reserved or exchanged, and a realistic absorption rate for the rest. The whole point of development exit is to set the term to the genuine sales period rather than the original development deadline, so the units sell into the market at full value instead of being discounted to clear a maturing loan. Each completed sale redeems part of the facility until the final unit clears it entirely. Where a small number of units linger, the fallback is to refinance the remainder onto a buy-to-let facility and let them.