Development Exit Finance
DEVELOPMENT EXIT FINANCE
You’ve finished your build and are nearing the end of your development loan. What do you do? Ask for an extension and hope for the best or switch to a lower cost loan which will give you the time to sell or remortgage.
POINTS TO CONSIDER WHEN LOOKING FOR DEVELOPMENT EXIT FINANCE
- Term of the mortgage, as often lower rates are quoted for shorter terms but if you don’t repay on time the rates can be much higher;
- Can your solicitors be instructed the same day or can you use the lender’s solicitors to save you time;
- Don’t just focus on the interest rate. Add all the costs up to compare one lender to another;
- If using a broker ensure they fully understand bridging and don’t go through a third party. This will increase the costs and be slower;
- What happens if you are late when repaying the loan? Some lenders are flexible others will be in court to repossess before you know it;
- What is your exit, what is your Plan B, C etc. Work on this before you apply for the loan.
- 1-24 month options;
- Up to 75% of value;
- Ability to release some of your profit to go towards your next project;
- Choice of daily or monthly interest rates;
- Fee-free options.