At what point is the development project eligible for your development exit loan?

Once you have reached practical completion and you have building control, building certificates, and building warranties in place.

Do you allow equity releases as part of your development exit loans?

Yes, we do allow equity releases / capital raising against the development. 

What is your maximum LTV for your development exit loans?

We lend up to 75% LTV gross i.e., inclusive of interest and fees.

Do you require the titles to be split prior to completion?

No, the titles can be split at the point of each sale.

What happens if a development is not complete yet?

If you have not reach practical completion, we can look to provide you with a bridging or development loan until you reach practical completion and you have building control, building certificates, and building warranties are in place. Once these are in place, we can transfer your bridging or development loan to our Development Exit loan.

What is a development exit loan?

Development exit loans allow developers to refinance their development loan once their project has reached practical completion on. Our development exit loans are often on better terms than development loans, provide developers with a longer sales period and can also release capital / equity from the project to be utilised elsewhere.

Can I repay my development exit loan early and are there any penalties for doing so?

Yes, you can repay your development exit loan at anytime and there are no penalties for repaying early. We do have a minimum charging period of 3 months interest.

Do you offer development exit loans even if my original development finance was from another lender?

Yes.

Can I use the funds from the development exit loan for purposes other than repaying my initial development loan?

Yes, once the development loan has been repaid there maybe scope within our lending criteria to enable you release equity from the completed development for other purposes requiring cashflow.

What security do you require for a development exit loan?

Our loans are typically secured against the development project and depending on how much you’re looking to borrow we may need to take additional security. If we are lending to a limited company, we will also require personal guarantees from the directors and shareholders (with shareholding over 20%) and a debenture over the borrowing company.

Do you require long leases to be in place prior to completion?

No.