Development Finance

Development Exit Finance Explained

2024-12-01 5 min read

Development exit finance allows developers to refinance out of an expensive development loan once a project is practically complete, reducing costs while units are sold or let. It's an essential tool for managing cash flow and maximising returns.

How It Works

Once your development is at or near practical completion, exit finance replaces the high-cost development loan with a cheaper, short-term facility. This gives you breathing room to sell units at the best price rather than accepting fire-sale offers.

Key Benefits

  • • Lower interest rate than development finance
  • • Time to achieve optimal sale prices
  • • Release capital for your next project
  • • Avoid default penalties on expired development loans
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Frequently Asked Questions

When should I arrange exit finance?
Ideally before your development loan expires. Most developers start the process 2–3 months before practical completion.

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Speak with one of our expert advisers today, initial consultation at our expense, and without obligation.