Development Exit Finance
Replace your development facility once construction completes. Lower your holding costs while you sell, and free up capital for your next project.
Rate
From 0.55% p.m.
LTV
Up to 75% LTV
Term
6-18 months
What Is Development Exit Finance?
Development exit finance is a short-term facility that repays your development loan once construction is substantially complete. It replaces the more expensive development finance with a lower-cost holding facility, giving you time to sell completed units at the best price rather than accepting discounted offers to meet your development lender's repayment deadline.
Most development loans require full repayment within 6 months of practical completion. Development exit finance extends that window at a significantly lower rate — typically 0.55-0.85% per month compared to 0.75-1.0%+ on the development facility.
Capital Recycling
One of the key benefits of development exit finance is capital recycling. As each unit sells, the exit facility reduces, and your development finance is fully repaid. This means any profit from early sales can be redeployed into your next acquisition while remaining units continue to sell.
For developers building a pipeline of projects, this is transformative. Instead of waiting for every unit to sell before starting the next scheme, you can overlap projects and significantly increase your annual output.
Typical Use Cases
When to Use Development Exit Finance
Completed Schemes
Repay your maturing development facility while units are marketed and sold.
Phased Disposals
Sell units individually at full market value rather than bulk-discounting to hit deadlines.
Pipeline Developers
Free up capital and credit lines to start your next project before current sales complete.
Rental Retention
Hold completed units temporarily while market conditions improve or rental yields stabilise.
How It Works
The Development Exit Finance Process
Completion Assessment
We assess your scheme at or near practical completion and review the sales position.
Exit Facility Sourcing
We source competitive exit facilities, often from lenders different to your original funder.
Refinance & Repay
The exit facility repays your development lender. Sales proceeds reduce the exit loan.
Final Redemption
The exit facility is repaid in full from remaining unit sales, typically within 6-12 months.
Common Questions
Development Exit Finance FAQ
When should I arrange development exit finance?
Is development exit finance cheaper than my development loan?
Can I keep some units to rent instead of selling?
What if my development loan has already expired?
Development Exit Finance by Location
We arrange development exit finance for projects across the UK. Here are some of our most active areas.
Expert Guides
Development Exit Finance Guides
In-depth guides to help you navigate development exit finance — from application to completion.
Fixed vs Variable Bridging Rates: Which Saves You More?
With bridging rates from 0.55% per month, the fixed vs variable decision can mean thousands in savings or unexpected costs. Here is how to choose.
6 min read readExit Fees on Development Loans: How They Erode Your Profit Margin
Exit fees are the charge that hits hardest because they come when you least expect them. This guide explains how exit fees work, what is reasonable, and how to negotiate or avoid them entirely.
9 min read readExtension Fees on Development Loans: When Your Project Runs Over
When your build programme overruns, extension fees can significantly impact your profit margin. This guide covers typical extension costs, how to negotiate them, and strategies for protecting your position.
9 min read readWhat Happens When a Development Loan Defaults? A Step-by-Step Guide
A detailed walkthrough of the development loan default process in the UK, from initial breach notice through to enforcement, and what developers can do at each stage to protect their interests.
12 min read readLPA Receivers in Development Finance: What Developers Need to Know
A comprehensive guide to LPA receivers in UK development finance, covering their appointment, powers, duties, and what developers can do to protect their position when a receiver is appointed.
12 min read readRelated Services
Most deals use a combination of products. These services are commonly used alongside development exit finance.
Development Finance
Senior debt funding for ground-up residential and commercial developments.
From 6.5% p.a. · Up to 65-70% LTGDV
Commercial Mortgages
Long-term finance for commercial property acquisition and refinancing.
From 5.5% p.a. · Up to 75% LTV
Bridging Loans
Short-term finance for acquisitions, auction purchases and time-sensitive deals.
From 0.55% p.m. · Up to 75% LTV
Ready to Discuss
Your Project?
Submit your deal and receive indicative development exit finance terms within 24 hours. No obligation, no fees until we deliver.