Glossary definition
Development Exit Finance
A short-term loan that replaces a development finance facility once construction is substantially complete, providing time to sell units at optimal prices. Development exit finance carries lower rates than development loans because the construction risk has been removed.
Definition
A short-term loan that replaces a development finance facility once construction is substantially complete, providing time to sell units at optimal prices. Development exit finance carries lower rates than development loans because the construction risk has been removed. It allows developers to repay their senior lender and avoid pressure sales while marketing completed units.
See also
Closely related terms.
Senior Debt
The primary layer of debt in a development finance structure, secured by a first legal charge on the property and sitting at the bottom of the capital stack with first priority on repayment.
Practical Completion
The stage at which a building project is deemed complete and fit for its intended purpose, even though minor snagging items may remain.
Bridging Loan
A short-term secured loan used to bridge a gap between a purchase and a longer-term funding solution or sale.
Further reading
Guides that touch this term.
Guide
Can I Get Development Finance With No Track Record?
An eligibility guide for developers without a completed scheme. We explain which lenders will consider you, exactly what they check, and the lower leverage and higher pricing to expect.
5 min read readReadGuide
Bridge First, Then Development Finance: When Bridging Comes First
Some sites have to be bought before a development facility can be put in place. This guide explains when a bridge comes first, how the bridge-to-development refinance works, and what to agree with the bridging lender at the outset.
6 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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