Development Exit Finance
in Pontefract

Choosing between extending your existing development facility and refinancing onto a dedicated exit product depends on the numbers. Many development lenders offer extension terms — but these are often at increased rates (1-2% premium) and with additional fees. A standalone exit facility from a specialist lender frequently works out cheaper, even accounting for the arrangement fee and legal costs of a new facility.

Exit finance is particularly valuable for developers who have multiple projects in the pipeline. Repaying your development lender frees up your borrowing capacity and track record for the next scheme, rather than having capital tied up in a completed but unsold project. This capital recycling effect can be worth more than the direct interest saving.

The exit finance market includes specialist bridging lenders, challenger banks, and some mainstream funders who have developed specific exit products. Each has different criteria around minimum units remaining, acceptable sales periods, and geographic focus. Matching your completed scheme to the right exit lender is as important as finding the right development funder in the first place.

Regeneration programmes in Teesside, Hull, and Sunderland are unlocking development sites at accessible land values, while the Heritage Action Zones across the region provide additional incentives for sensitive conversion projects. Lenders familiar with the North East and Yorkshire markets understand the strong income potential relative to development costs.