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FREE Development Exit Finance Advice

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    “We know that time is precious for you, we can work around your availability while searching for the most competitive mortgage products and overseeing your mortgage application from start to finish”.

    Jonathan Smith – (CeMAP, BA Hons, Aff SWW, CeRER)

    Have you completed your development but haven’t been able to raise the funds needed to repay the loan? Or is the repayment deadline getting closer and you need more time to finish the works? Development exit finance can help you with both of these scenarios. Not only can it provide you with the breathing space needed to finish or sell your development but you’ll benefit from a lower rate than the one you’re paying for the development finance.

    At Trinity Finance, we appreciate the flexibility required when taking on a development project. This short-term loan can help to reduce the pressure of impending deadlines, lower your costs, maximise your profits and enable you to raise capital for further projects. We can arrange this specialist finance quickly so that you can benefit from a low-cost funding solution that’s tailored to your needs.

    What is development exit finance?

    Development exit finance is a specialist type of bridging loan that’s suitable for residential and commercial projects. It allows you to repay your development finance and bridges the gap until you’re able to sell your development. In some cases, it bridges the gap until your development has been completed. Either way, the interest rate will be lower than the one payable for your development finance as less risk is involved for the lender. The interest is usually rolled up, which means you don’t have to worry about making monthly interest payments. This helps to improve your cash flow. This short-term loan can run from 1 month until 36 months, depending on the lender.

    Why use development exit finance?

    When you apply for development finance, you have to provide the lender with an exit strategy, which is how you’re going to repay the loan. This might be by selling the completed development and using the sale proceeds to repay the loan. You may choose to arrange long-term refinancing instead. Or you may opt to refinance using a development exit product. This last option offers various benefits that can provide you with increased flexibility for your development project. These benefits are detailed below.

    The pressure of having to make quick sales at reduced prices is removed

    The repayment deadline for your development finance may be drawing near. If you haven’t completed the sale of your development, using development exit finance provides you with a longer sales period. Refinancing in this way ensures that your original loan is repaid so that you’re not charged extension fees. It also removes the pressure to rush the sale of your development, which would undoubtedly involve you accepting a much lower price than its market value.

    Your borrowing costs are reduced and your profit margin increased

    Development finance costs you more as the lender has taken on a higher level of risk. When you’re project is nearing completion, it makes sense to switch to development exit finance. That way, your original loan is repaid and you benefit from a lower interest rate while you finish your development. This helps you to save a considerable amount of money and boosts your profit margin instead of depleting it.

    You have more time to complete your project

    Issues invariably occur with development projects and you may find that yours has overrun on the proposed schedule. By refinancing your development finance to development exit finance, you have a longer time frame within which to complete the final touches to your development. The new term also provides you with more time after completion of the works to market and sell your development.

    You can release some of your capital earlier

    Development exit finance allows you to release capital from your development before a sale has been completed. This enables you to fund the next development project without having to wait until the current one is sold. Maintaining your cash flow in this way ensures that you don’t miss out on the next investment opportunity.

    You can retain some of the sale proceeds

    Lenders for development exit finance offer more flexibility when it comes to the sale proceeds of your development. They allow you to retain a percentage of the sale proceeds from each unit as each one is sold. That way, you can repay the loan in stages rather than in one go as you would with development finance. As there is less risk for a lender with a completed development, they are happy to accept payments in this way, knowing that the loan will be repaid in full when the last unit is sold. This arrangement also ensures that you can maintain liquidity with your cash flow.

    The eligibility criteria for development exit finance

    Lenders’ criteria vary but, generally, you can apply for a loan as an individual or as a partnership, limited company, LLP, offshore company, pension or trust. Loans are usually available to expats and foreign nationals. You don’t need to be an experienced developer to benefit from this type of loan and lenders are generally happy to accept first-time developers. You can also apply for property development exit finance if you have an adverse credit history.

    You’ll usually need to provide the following information:

    • Details of the borrower, whether it’s you or a company
    • Details of the security being provided
    • A summary of the outstanding works and costs if the development isn’t finished
    • The Practical Completion certificates if the development is finished
    • Copies of the warranties for new builds
    • The planning permission documentation
    • Details of the existing development finance loan

    Discuss your development exit finance queries with an expert

    Our mortgage brokers – located in Kent, London and Edinburgh – are available to discuss your development project funding requirements. They can help you decide whether development exit finance is the right choice or suggest alternative funding options for you. When you’re ready to proceed, they will check your eligibility and tailor-make your application. At Trinity Finance, we work with specialist lenders for this type of finance and will approach the one that offers flexible terms and rates to best fit your needs. To get started, just give us a call on 01322 907 000. Alternatively, send your details to us by email at or via our contact form. One of our financial advisers will reply to you as quickly as possible with more information.

    How much can you borrow with development exit finance?

    Lenders differ with the loan amounts they offer with some starting at £25,000 and others having higher minimums of £100,000. Loan limits can extend to several million while some lenders don’t have a maximum amount. The type of development that the loan is for and your planned exit strategy both help to determine how much a lender will be prepared to offer you.

    The loan-to-value (LTV) ratio is usually up to 75% for residential or mixed-use projects. Some lenders may offer a higher LTV if you meet certain criteria. For a refurbishment project, you may be able to arrange a loan with an LTV of up to 85% or 90%. Bear in mind that the higher the LTV, the more interest will be payable.

    The costs involved with development exit finance

    Interest rates

    As mentioned earlier, interest rates charged for development exit finance are lower than those for development finance as there is less risk for the lender. Therefore, you’ll still save on costs despite having to pay interest. One factor that determines the rate you’ll be charged is the LTV that the lender agrees to. Another is your exit strategy. We deal with specialist lenders for this type of funding and they assess each application on an individual basis. This means you can rest assured you’ll benefit from a competitive rate on your loan. Lenders offer flexibility with how the interest is paid. It’s usually rolled up but monthly or retained options are also offered.


    As well as paying interest on your loan, there are various costs to consider when taking out development exit finance. These include:

    • An arrangement fee. This is charged by most lenders and is usually 1% to 2% of the total loan amount.
    • A valuation fee. A valuation will need to be carried out at your expense before the lender offers you a loan.
    • Legal costs. You’ll need to pay your solicitor’s costs for carrying out the legal aspect of the deal. You’ll more than likely have to pay the lender’s legal costs too.
    • An exit fee. Some lenders charge an exit fee on repayment of the loan. Our mortgage brokers will check this first so that you’re fully aware if you’ll be liable for this cost.

    Repaying your development exit loan

    You can repay the loan in full or in part before the end of the term if you’re in a position to do so. This will help you to save on interest charges. Whilst most lenders won’t penalise you for this, some charge exit fees so it’s important to check this first.

    A significant difference between development finance and development exit finance is that with the latter, you can retain some of the proceeds each time you sell a unit. This allows you to repay the loan in stages while keeping some of the profits back. This improves your cash flow and the amount may even be significant enough to help you start your next project.

    Use development exit finance to boost your project funding

    Give us a call on 01322 907 000 when you’re ready to take advantage of this low-cost financing solution. As your development project and funding requirements are unique to anyone else’s, our mortgage brokers – based throughout Kent, London and Edinburgh – will process your application on an individual basis. It will be tailored to meet the requirements of the lender offering the most flexible terms and competitive rates to suit your needs. As development exit finance is fast to process, you can rely on a swift solution to the financial requirements of your project.

    At Trinity Finance, we provide other services that can help with your residential or commercial development project. As well as our range of commercial finance products, we can arrange your property insurance and also offer mortgage protection insurance. To speak with one of our expert brokers about the range of beneficial products and services available, simply call us on the number above. If you prefer, send an email to us at or an enquiry via our contact form. One of our mortgage and protection brokers will reply to you as quickly as possible with further details.



    Yes, lenders usually accept applications for borrowers with an adverse credit history as the exit strategy is reliant on the sale of the development. Each case is reviewed individually and just be aware that you may have to pay a higher interest rate.

    Yes, lenders accept applications from first-time developers for this type of funding. There may not be as many options available to you as to those with experience but there shouldn’t be any issues as long as you meet the lender’s criteria.

    You can receive funding once your development has been confirmed as being wind and watertight. Your lender may release some of the funds at this stage and the rest once you’ve provided them with the Practical Completion certificates. Whilst there might not be as many options available before your project is completed, you can still benefit from competitive rates.

    If you haven’t completed the build works for your project and need extra funds to finish it, you can apply for finish and exit development finance. The agreed term for the original development finance loan may not have been long enough or unexpected issues may have caused the project to overrun and the loan term to expire. In this case, a finish and exit loan can be used to repay the original loan and finance the remaining build works. This type of bridging loan is typically available for a short term of up to 12 months.