Is development exit finance cheaper than development finance?

Usually, yes. Because the construction risk has been removed (the build is complete), exit finance lenders offer lower rates — often starting from 0.50% per month compared to 0.65%+ for development finance.

Can I release equity/profit when I exit?

In many cases, yes. If the development has been completed and is worth more than the outstanding debt, the exit facility can be structured to release some profit or equity to you.

Do all units need to be completed?

Most exit lenders require practical completion or very near completion. A few remaining snagging items are typically acceptable, but the property must be habitable and saleable.

Can I exit individual units?

Yes. Most development exit facilities allow partial releases — as each unit sells, a portion of the loan is repaid. The release price per unit is agreed upfront.

Development Exit Finance | Refinance Completed Projects

Exit Your Development on Your Terms

Development exit finance replaces your existing development loan with a lower-cost bridging facility once construction is complete or near-complete. This allows you to repay the senior development lender (avoiding punitive extension charges), release trapped equity, reduce monthly costs and sell units at the best market price rather than accepting fire-sale offers to meet development loan deadlines.

When Development Exit Finance Helps

Your development loan is expiring and not all units are sold

You need to repay your development lender to avoid penalty charges

You want time to sell remaining units at the best price, not in a rush

You've completed the build and want to release trapped profit/equity

You want to recycle capital into your next development project

Sales are progressing but slower than originally projected

Your development lender's exit terms are punitive

Get a Quote

Fast response — often within the hour for urgent cases.

Key Criteria

• LTV: Up to 70–75% of GDV (Gross Development Value)

• Loan size: £250,000 to £25,000,000+

• Term: 6 to 18 months

• Rates: From 0.50% per month — often cheaper than development finance

• Units: Individual houses, apartments, mixed-use developments

• Stage: Practical completion or near-complete with clear timeline

How It Works

Assessment

We assess the completed development — GDV, units sold/under offer, remaining units, current debt and timeline.

Terms Sourced

We source competitive exit finance terms from our specialist panel — typically at a lower rate than the original development loan.

Senior Debt Repaid

The exit facility repays your development lender, stopping penalty charges and freeing you from their timeline.

Sell at Best Price

With time pressure removed, you sell remaining units at the best achievable price. As units sell, the loan reduces.

Risks & Considerations

• If remaining units don't sell within the exit finance term, you may face further extension costs
• Market conditions can change — a declining market may reduce achievable sale prices
• Exit finance carries its own arrangement and legal fees which add to total project costs
• Interest continues to accrue on the exit facility until all units are sold

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A bridging loan is secured against property. Your property may be at risk if you do not keep up repayments. Bridging finance is a short-term solution and should not be used as a long-term borrowing facility.

Chess Mortgages is authorised and regulated by the Financial Conduct Authority. Some bridging loans are not regulated by the FCA.

Development Exit Finance

Exit Your Development on Your Terms

When Development Exit Finance Helps

Get a Quote

Key Criteria

How It Works

Assessment

Terms Sourced

Senior Debt Repaid

Sell at Best Price

Risks & Considerations

Related Services

Ground Up Development

Heavy Refurbishment

Commercial Bridging

Frequently Asked Questions

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