Unlock Your Development Potential with Development Exit Finance Options
DEVELOPMENT EXIT FINANCE
Development exit finance is a type of finance that can be used in several situations. The following are the three main reasons why this type of finance is attractive:
Firstly, it can be used when the existing development finance facility is coming to an end and sales won’t be completed in time to repay the loan. In this scenario, it can provide extra time to complete the marketing of the properties.
Alternatively, developer exit finance can be used to reduce finance costs when development finance is expensive.
Finally, development finance can be used to release capital from a development before sales come through. This allows you to move on to your next project without waiting for sales to be completed.
Development exit finance can be a valuable tool for property developers who need to complete a project, reduce finance costs, or release capital from a development. If you need fast funding for your project, consider using this to achieve your goals.
Case Study
Situation
Our client was a property developer who had secured finance to complete a development project in Kent. However, as the project neared completion, they found that sales were not being completed as quickly as anticipated, and the existing development finance facility was due to expire and couldn’t be extended.
The client needed to secure additional time to complete the marketing and repay the existing finance facility.
Our Response
We proposed a development exit finance solution that would provide the necessary time to complete the marketing and repay the existing finance facility.
We worked with the client to structure a finance package that met their needs, including a repayment plan that aligned with the expected sales schedule.
Result
The client was able to repay the existing finance facility and obtain a lower interest rate on the new facility.
If you need more information on Development Exit Finance contact us on 01565 654005
DEVELOPMENT EXIT FINANCE QUESTIONS
-
What is development exit finance?
Development exit finance is a type of finance that can be used to complete a development project, reduce finance costs, provide more time to sell, or release capital from a development.
-
When should I use development exit finance?
You should consider development exit finance when your existing development finance facility is coming to an end and sales won’t be completed in time, when development finance is more expensive or when you need to release capital from a development before sales come through.
-
How does development exit finance work?
Development exit finance works by providing the necessary funds to complete your project or release capital from your development. It is also used to give you more time to sell the finished units. You can secure fast funding at competitive rates, tailored to meet your specific needs.
-
What are the benefits of development exit finance?
The benefits of development exit finance include fast funding, lower finance costs, and the ability to release capital from a development before sales come through. This can help you complete your project on time.
Additionally, development exit finance offers 1-24 month options, up to 75% of value, the ability to release some of your profit to go towards your next project, and a choice of daily or monthly interest rates.
-
What are the interest rates for development exit finance?
The interest rates for development exit finance depend on a variety of factors, including the size of the loan, loan to value and the risk associated with the project.
You may have the choice of daily or monthly interest rates.
-
What is the term of the loan for development exit finance?
The term of the loan for development exit finance can vary depending on your specific needs, the equity and lender you choose. It is usually up to 12 months but can be longer.
-
How much can I borrow with development exit finance?
With development exit finance, you can borrow up to 75% of the value of your development, depending on the lender and the specific circumstances of your project.