Specialist
Development Exit Finance
Specialist
Finance Rates from 1 - 18 months Rates up to 80% LTV net As at 1st Feb 2023 Finance Rates from Up to 60 months Rates up to 70% of GDV As at 1st Feb 2023 Finance Rates from 1 to 18 months Rates up to 80% LTV net As at 1st Feb 2023
Flipping Property?
Buying, Renovating & Selling (or Letting)
0.41% pm
Ground Up Development
New Builds
0.50% pm
Existing Development?
Refinance & Exit Finance
0.41% pm
Development exit finance is a type of bridging loan for property developers mid-way through their development project to potentially save costs and maximise their profit opportunity.
Development finance is sourced to fund an entire project, so it can be more expensive because there’s a greater risk to the lender at the start.
This is where development exit finance comes in – a cheaper alternative to switch to once you’ve completed the bulk of your project (e.g., your property or properties are wind and watertight), as there is lower risk for your lender, meaning better rates.
Development exit finance works by repaying your existing development loan with a cheaper exit loan. Your exit finance is calculated on the basis that you’ve already completed the majority of your project – less risk for your lender, so a cheaper rate.
Repaying your existing finance usually means you stop paying interest immediately on your previous loan, as development loans typically charge interest on a monthly basis.
This means you get savings straight away, and you get added flexibility for your project and more time to sell, ensuring you realise your development’s full value.
There are 3 main reasons to use development exit finance.
To save money while your property sells
If you’ve developed a bespoke property that may take a while to sell (particularly relevant for high value projects), you’ll want to be paying the lowest rate possible while it’s on the market. Development exit finance will provide this for you and could also be used to raise additional funds to market the property.
If your property won’t sell in time
If it’s looking unlikely that your property will complete and sell before the end of your loan term, you won’t want to drop the price for a rushed sale just to repay your finance.
Development exit finance gives you the flexibility and affordability finish your project to your desired standards if you are yet to complete, and ensure you realise its full value.
To fund your next development project
If you’re moving straight on to a new development project, you can realise the capital from your completed development and invest the funds into your new project straight away.
Development exit finance is structured in the same way as most other bridging loans and development loans, so you’ll probably be familiar with the costs. But here’s a recap:
Your lender’s arrangement or facility fee – typically 2%
Your loan drawdown or admin fee – usually around £295
Redemption fee on your existing loan – usually around £120
For more information, we have a full guide to bridging loan costs.
The final (and biggest) cost is the interest rate…
The exact interest rat you’ll get for your development exit loan will depend on your case. But generally, you’ll often pay a lower rate than you would for ‘ground up’ development finance, or the finance you’ve taken out at the beginning of your project.
At Clifton PF, we can source market leading development exit finance interest rates from as low as 0.49%.
Our bridging loan calculator can help give you an indicative quote for your project.
You can generally borrow anywhere between £100,000 and £25m through development exit finance.
There are a few key factors that determine the exact amount, and these factors vary depending on the type of project you’re developing.
For some refurbishment projects, we can source funding for up to 90% gross LTV.
Yes, you can.
Generally, your options are more limited as a first time developer or inexperienced developer.
However, we work with lenders that are comfortable with accepting development exit loan applications from those with less experience, as long as their understanding of the terms is solid and they have a clear and robust development timeline for their project.
Development exit finance and other types of bridging loans are regulated by the FCA if you or a family member intends to live in the property after work is completed.
If you’re developing a property for commercial use or you’re looking to flip the property once developed, you’ll need an unregulated loan.
There are two main ways to get development exit finance – using a broker or going direct to lenders.
If you go direct to a lender, either your current lender or a new one, you’ll need to provide them with your development plans and project information before you get an exact quote. So, this isn’t always the most practical option for comparing lenders and rates, especially if you’re got a construction project to run.
If you use a specialist broker, like Clifton Private Finance, we have existing relationships with multiple lenders and can quickly scour the market for the best rates and overall costs for your situation.
Our clients often find the savings they make on better interest rates significantly outweighs our broker fee.
Depending on the complexity of your case, we can arrange development finance as quickly as 1 week. For more complex cases, you could expect it to take closer to a month or possibly more.
To discuss your project and find out what type of development exit finance solution is right for you, you can speak to an adviser today through a no-obligation, free consultation.
If we find a development loan that you’re happy with (and we’re confident that we will), we can guide you through the application process and liaise with your lender to streamline your application process.
Further Reading:
Property development project behind schedule? How to refinance to avoid penalty rates »
How to get development exit finance as your building project nears completion »
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
