“Developer exit bridging loans offer short-term finance for property developers, which they can use to repay their development finance. This provides extra time to finish works, or find the right buyers for the properties.
The borrower uses the loan to pay off their, often more expensive, development finance. Development exit loans are secured against the built assets and have many options regarding repayment, including repaying each time a property is sold, or servicing the loan. This can all be discussed with our underwriters.
Development deadlines can be tight, and developers may find they’ll need more time to sell properties at premium prices, or organise long-term finance. Developer exit bridging loans can facilitate this.
It can also ensure that they don’t end up paying expensive fees to their initial lender should they encounter any delays.”
Our developer exit bridging are short term, specialised products designed to cover original development finance. You can use this funding to secure extra time to finish works, figure out long-term finance solutions, and find the right buyers for your development. This breathing space may prevent you from needing to sell off individual units at a reduced price, just to hit a looming deadline.
Development exit finance rates and costs are assessed on a case-by-case basis, with pricing typically influenced by the strength of the security, the loan-to-value, the term required, the stage of completion, and how clear and credible the exit route is.
As well as interest, it’s important to factor in the wider cost of setting up the facility, which may include an arrangement fee and third-party costs such as valuation and legal fees. If you share the property details, the amount you need to refinance, your preferred term and your exit plan, we can indicate whether the case is workable and what the likely cost structure would look like.
When we assess development exit finance criteria, we focus on the asset and the overall strength of the proposition, particularly whether the scheme is completed or close to practical completion, and whether there is a clear strategy to repay the loan—most commonly through unit sales, refinance onto longer-term lending, or a combination of both (for example, where some units are already sold).
We’ll also look at the proposed loan size and term against the security, the sales position and timeline (if applicable), and any supporting information that helps evidence the exit. Providing a concise summary of the scheme, the refinance requirement and the planned next steps helps us move quickly and give you a clear view of what we need to progress.
Property developers can qualify through a range of setups. You can apply as an individual or via a company. We offer our loans to those aged between 21 and 85. We’re also accepting of applications from any country, other than those that are sanctioned or blacklisted.
You don’t even need to be based in the country you’re operating in. If you’re situated in the Americas or the Middle East, but plan to develop a block of flats in Wales, we’re open for business. We’re also often able to service investors with adverse credit histories, CCJs, missed mortgage payments, defaults, bankruptcies and the like.
You can borrow between £100,000 and £30,000,000 for this type of loan.
This loan can be used for small or large residential development projects, ranging between 4 and 100 units. The funding can allow you to finish off any minor development works such as internal refurbishments. Development exit loans help bridge the gap between completion of a project and securing long-term finance, or the sale of the units.
You can use this funding to support the purchasing of multiple units primed for development. They could take the form of individual builds, a block of flats, or other types of buildings. Our development exit finance can be used for both residential and commercial properties located in England and Wales.
Property developers may start a project with the simplest end-goals in mind. You may just want to develop a building to its fullest potential, and sell individual units for a healthy profit. But, these kinds of projects take time. Often, things rarely go to plan. Refurbishment works can end up delayed, while external changes in the economy force adaptation.
We’ve seen evidence for this in recent months. Supply chain issues left builders with material shortages, while Government changes put the markets in turmoil. Adapting to these problems will be difficult enough. But our development exit finance can ease the pressure as you find long-term solutions to these kinds of short-term issues.
On top of giving you additional time to organise your affairs, developer exit bridging loans provide flexibility and budget-friendly perks. There are many ways to set up an agreement and tailor repayment terms. You can repay the loan in stages as you sell off units, minimising the interest payable and cutting monthly bills.
Alternatively, if you’d like to cover the loan in larger instalments, we can work with that. All our products are bespoke to fit in with your requirements. No matter how complicated you fear your case to be, we’ll look to adapt with what’s needed.
We can have funding issued in as little as 3 days. On average, most of our deals are completed in around 2 weeks, depending on the paperwork. Where unexpected development delays and deadlines emerge, we’ll be able to adapt at pace.
To support you in your case, we need a few documents from dependent on your special circumstances. Amongst others, we need the following paperwork to move your loan along quickly:
The more details we can get on your development project, the quicker we can move forward.
Our underwriters and BDMs are more than happy to help you with any enquiries. You can call us, email or chat with us on our website to get your application started. Call us on +44 (0) 20 7060 1234 or email info@mfsuk.com and you will be connected with one of our dedicated underwriters, who will discuss your requirements with you, and guide you through the process.
In our guide “Development Exit Finance Explained” we go into details what development exit finance is, how it works and what exactly it can be used for. The guide is free and available as a PDF to download.
