Development Exit Finance

Raise funds to repay your development finance facility and get the best deal with ABC Finance

Rated Excellent on Reviews.co.uk

What is development exit finance?

Development exit finance, also known as developer exit finance, or exit bridging, is a type of bridging loan that is used to fund property development projects from the point of practical completion through to sale.

It is also known as sales period finance.

While primarily targeted at projects at the point of practical completion (PC), in some cases, we can arrange a development exit loan before PC.

How does developer exit finance work?

Development exit finance works as follows:

Loan approval is based on loan amount, LTV and exit strategy – usually sale of the completed units.
Once the development exit finance is arranged, there are no monthly repayments – interest and fees are added to the loan and repaid as properties are sold. This works in a similar way to development finance.
Sales funds usually go to the lender until the finance is repaid in full.

Development exit finance can usually be repaid early without early repayment charges, as units sell.

Key product features

Key Features

Max LTV

Up to 80%

Interest rate

From 0.39%per month

Charge types

1st, 2nd & 3rd considered

Term

1-36 months (maximum 12 months for regulated loans)

Interest type

Added to the loan, deducted or serviced

Completion timescale

5 days – 3 weeks

Criteria

Residential, commercial property or land acceptable security

Available to individuals, partnerships, LLPs, Ltd companies, offshore companies, foreign nationals and pension funds

Minimum applicant age 18 years – no maximum age

Available in England, Scotland, Wales and Northern Ireland

Adverse credit or low credit score accepted (on a case by case basis)

Loans from £25,000 with no maximum loan size

Why would I consider sales period finance?

The reasons why property developers use development exit finance to finance the sales period are:

Extend your loan term beyond your current development finance facility
Reduce your interest rate and borrowing costs
Release equity using a new bridge to fund your next development or refurbishment project
Raise finance to fund a new real estate acquisition

How long does it take to receive the money?

We can arrange development exit finance in 5 days to 3 weeks.

Where funds are needed urgently, we can help you to find the perfect property finance lender who can complete quickly, and handle the whole application process to ensure things run smoothly.

What interest rates and fees will I pay?

Development exit finance rates start at 0.39% per month in the UK. We work with leading lenders to secure the best bridging loan rates.

On top of the interest, there will be several fees when setting up a new loan. They are:

Lender arrangement fee – these fees are charged by the lender for setting up the loan and are generally payable on completion. This fee is usually 1-2% of the finance amount and can usually be added to the loan.
Broker fees – Some brokers charge a fee for using their service (we don’t). These fees can be as much as 1.5% of the finance amount.
Valuation fees – As the properties are new, automated valuations aren’t usually possible, meaning a chartered surveyor must visit the property and produce a report. This fee is usually charged early on in the application process.
Legal fees – You are usually responsible for both your own and the lenders legal expenses in arranging the finance. These fees are usually paid once the formal offer has been issued.

We offer specialist London bridging loans that often come with lower rates.

Is development exit finance cheaper than development finance for property developers?

Yes, development exit finance is cheaper than property development loans.

This is why property developers often choose to switch to development exit finance to release capital and reduce borrowing costs.

What documents will I have to provide when I apply?

When you apply for development exit finance, you will have to provide:

Property developer profile – limited company details, company registration number. In addition, the people behind the company including borrower name, experience/previous developments, credit history and information on outside finances, including mortgages, debt and personal and other business assets.
Details of the security, also known as collateral for the loan including build position, value and address
Details of the current development finance facility

Why should I refinance my development with ABC Finance?

At ABC Finance, we’ve been arranging development exit finance and bridging loans since the year 2000 and are experts at helping developers secure the debt finance needed to fund their projects.

We don’t charge broker fees when arranging bridging loans and have access to lenders across the whole bridging market. This means one thing, we can get you the best deal and secure big savings for you.

We have countless 5 star reviews from happy customers, have won multiple awards for our bridging loan offering and are fully regulated by the Financial Conduct Authority (FCA).

Development exit loans to raise capital with ABC Finance

Borrow up to 80% LTV quickly
Fast short-term development exit finance can complete quickly
Experienced team of bridging loan and development finance experts
Repay property development finance against residential or commercial, including office, retail, industrial or leisure.
Market leading interest rates on development exit finance from 0.39% and no monthly payments to make or exit fees.

We offer a full comparison between property development finance and development exit finance to ensure you secure the cash to meet your needs at the best possible price.