In the competitive landscape of UK property development, managing finance during and after a build is crucial. Development exit finance offers a strategic tool for developers looking to refinance existing loans upon project completion or near-completion. Fraser Bond provides bespoke development exit finance solutions, helping clients reduce costs, release capital, and maximise returns.
Development exit finance is a short-term refinancing solution used when a development project is completed or nearing completion. It replaces the original development loan—typically more expensive and restrictive—with more favourable terms. This allows developers more time to sell completed units without the pressure of expiring development finance.
According to insights from Clifton Private Finance, these loans are commonly secured quickly and can lower interest costs compared to traditional development finance.
Lower Interest Costs
Refinancing at a lower rate than initial development loans can significantly reduce total financing expenses.
Extended Sales Timeline
Developers gain more time to market and sell units at full value, avoiding discounts due to tight loan timelines.
Capital Release
Exit finance can free equity from completed projects, enabling developers to pursue new opportunities without waiting for full unit sales.
Improved Cash Flow
Options for rolled-up interest and delayed repayment improve liquidity during the post-construction phase.
As noted by Shawbrook, this form of finance is particularly advantageous for high-value schemes and developments with longer sales cycles.
Near-Completion Projects
Ideal when practical completion is achieved and the original loan is due to mature.
Unsold Inventory
When multiple units remain unsold, this finance gives breathing space to secure full-value sales.
Capital Reallocation
Useful for releasing equity to invest in a new project before full sales of the current one are realised.
Developers facing short-term deadlines can benefit from the flexibility and capital unlocked through this solution, as highlighted by Trinity Finance.
Fraser Bond offers a tailored advisory service that simplifies the transition from development to sale. Our support includes:
Lender Sourcing and Comparison
Accessing a broad network of lenders to secure competitive exit finance offers
Custom Loan Structuring
Aligning terms with developers' cash flow and exit strategy
Documentation and Application Management
Streamlining paperwork and lender engagement for fast execution
Ongoing Strategy Review
Providing continued support and advice as the sales phase progresses
Our understanding of the UK market ensures developers get optimal terms without disrupting operational timelines.
Development exit finance is a powerful tool for UK developers looking to manage risk, reduce cost, and unlock capital post-completion. Fraser Bond’s experience and network provide the guidance and access required to structure the right deal at the right time.
For expert advice on refinancing your development project, contact Fraser Bond today to explore your options.