Streamlining Your Property Development Journey

Development exit finance, also known as sales period finance, is a specialised form of financing used to repay any outstanding loans associated with a recently completed or nearly completed property development project. It serves as a short-term bridging facility, specifically designed to offer lower interest rates compared to your existing development loan, making it an attractive option for transitioning from the development phase to the sales phase of your project.

Understanding Development Exit Finance:

Development exit finance serves the purpose of repaying the outstanding property development finance once your project is approaching completion. It functions as a type of bridging loan and typically comes with rolled-up interest, meaning the interest is accrued and paid at the end of the loan term.

These loans are usually available when the building is wind and watertight, signalling that it is in its final stages and ready for finishing touches before entering the sales period.

When to Consider Development Exit Finance:

There are several key scenarios where development exit finance becomes a valuable financing option:

1. The existing development finance facility is reaching its end, but the sales process is not expected to be completed in time. Development exit finance provides a solution to bridge the funding gap until the sales are finalised.

2. As development finance nears its term end, development exit finance can be utilised to reduce overall finance costs. This option is gaining popularity, particularly as interest rates decrease, with rates for development exit finance starting as low as 0.43% per month.

3. Development exit finance can also serve as a means to release capital from a completed development before sales are concluded, allowing you to move forward with your next project. This flexibility enables you to access funds swiftly, especially when expedited completions are required for new ventures.

The Cost Advantage of Sales Period Finance:

One of the key advantages of development exit finance is its cost-effectiveness compared to development finance. This is primarily due to the decreased level of risk associated with a project as it nears completion. Lenders recognize this reduced risk and are often willing to pass on the cost savings associated with a lower-risk application to the borrower.

Partner with Experts in Development Exit Finance:

If you are considering development exit finance for your property project, our team of experts is ready to assist you. We specialise in providing tailored solutions to streamline your financing journey, offering competitive rates and expedited funding options. With our in-depth knowledge and extensive network of lenders, we can guide you through the process and secure the most suitable financing arrangement for your needs.

Contact Us Today:

To explore the benefits of development exit finance and discuss how it can support your specific property development requirements, get in touch with our expert team today. We are committed to providing personalised advice, transparent solutions, and a seamless partnership focused on helping you successfully transition from development to sales. Contact us via the enquiry panel, and let us be your trusted partner in optimising your property development endeavours.