Glossary definition
Exit Fee
A fee charged by the lender when a loan is repaid, typically expressed as a percentage of the gross loan amount or sometimes as a percentage of the GDV. Exit fees are common on bridging loans and some development finance facilities, usually ranging from 0.5% to 1.5%.
Definition
A fee charged by the lender when a loan is repaid, typically expressed as a percentage of the gross loan amount or sometimes as a percentage of the GDV. Exit fees are common on bridging loans and some development finance facilities, usually ranging from 0.5% to 1.5%. They should be factored into the total cost of borrowing when comparing loan products.
See also
Closely related terms.
Arrangement Fee
A fee charged by the lender for setting up a loan facility, typically expressed as a percentage of the gross loan amount.
Facility Agreement
The legal contract between a borrower and a lender that sets out all terms and conditions of the loan including the facility amount, interest rate, drawdown mechanics, repayment terms, covenants, and events of default.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
Further reading
Guides that touch this term.
Guide
Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
Arrangement fees in development finance are rarely as straightforward as a single percentage. This guide exposes the hidden layers of fees that lenders charge and shows you how to negotiate effectively.
9 min read readReadGuide
Using a Bridging Loan to Buy at Auction: A Step-by-Step Guide
Buying at auction requires completing within 28 days. Bridging loans are the go-to funding solution. This guide covers how to get pre-approved, what it costs, and how to plan your exit.
4 min read readReadGuide
Development Finance vs Bridging Loans: Which Do You Need?
Two of the most common short-term property finance products, but they serve very different purposes. We break down the rates, terms, and scenarios where each makes sense.
8 min read readRead
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