Developer exit

Development exit finance: off the dev loan, onto cheaper debt

Development exit is one of the cleanest wins in specialist lending. The risk is dramatically lower than construction risk, and lender pricing reflects that — usually 40-50% below development finance rates.

Audience: Small and mid-scale developers

Situation: The scheme is finished but units are still selling — and every extra month on development finance costs materially more than an exit bridge would.

Primary: Bridging Finance

The situation

Development finance is priced for construction risk. Once the scheme is Practical Complete, that risk has largely gone — but you're still paying for it. An exit bridge refinances at a much lower rate and gives you 12-18 months to sell or refinance individual units.

How we approach it

We move quickly: exit bridge terms in days, drawdown as soon as PC is signed off and warranties are in place. Interest is typically rolled, cash covers marketing rather than monthly debt service.

What that looks like in practice

Typically 65-75% of GDV, sometimes higher on strong schemes
Interest usually rolled up — no monthly cash drain during sales
12-18 month terms with sensible extension options
Part-redemption as individual units sell
No ERCs on part-payments in most cases

Typical timeline

Day 1-3
Scheme reviewed, exit bridge terms issued.
Week 1-3
Valuation, legals, sign-off of PC and warranties.
Week 3-4
Drawdown, development loan redeemed, sales continue.

Common questions

How soon after PC can I refinance?

Immediately — as soon as building control sign-off and warranty documentation is in place. Some lenders will move on interim certificates before PC in special cases.

What if some units are already sold on completion?

Even better — sold units evidence pricing and reduce lender risk. Terms usually improve.

Can I extract profit at exit-bridge stage?

Sometimes, if valuation supports it. More commonly profit is extracted as units complete, via part-redemptions.