What is a Finish and Exit Development Loan?
A finish and exit development loan allows a developer to repay an existing development loan, raise the balance of funds needed to finish the build and time to sell or refinance completed units.
When to use a Finish and Exit Development Loan?
- When the existing development loan has reached the end of its term.
- Before practical completion or building control sign off.
- The build stage is post ground works, wind & watertight or near finish.
- Extra time needed to market the completed properties.
How to repay a Finish and Exit Development Loan?
A development finish and exit loan is typically repaid from the sale of the completed development or refinance when the units are are fully let.
Benefits of a Finish and Exit Development Loan?
- Avoid default interest rates and charges.
- Reduce borrowing costs.
- Provides drawdown funds needed to finish a development.
- Avoids costly construction delays.
- Provides extra time needed to market the properties.
- Equity release can be agreed on a case by case basis.
- Light monitoring for sufficiently advanced developments.
Finish and Exit Development Loan terms
- Borrower: Available to Individuals, Limited Co, LLPs, Partnerships, Foreign Nationals and Companies
- Property: Any property type including residential, HMO’s, commercial and semi-commercial properties
- Loan Size: From £250,000 – £25,000,000
- Interest Rates: From 0.59% per month.
- Term: 3-18 months
- Arrangement Fee: From 1.5%
- Day One LTV: 70%
- LTDGV: 67.5%
- LTC: 90%
- Location: England and Wales
Information needed to apply for a Finish and Exit Development Loan:
- Borrower details.
- Property address.
- Funding requirement.
- Information about the development to date.
- Details of the completed scheme.
- Security offered.
- Schedule of works.
- Exit strategy.
- Contractors and professional team.
Can I apply for a Finish and Exit Development loan with adverse credit?
Yes. Providing the lender is comfortable with the borrower’s ability to complete the scheme on time, on budget and successfully exit.
Quest Commercial Finance is a London based bridging loan broker with access to specialised bridging lenders offering Finish and Exit Development Loans that can be tailored to suit your needs.