Development Exit Finance

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    Completing a property development project can bring a whirlwind of emotions – it is an exciting and sometimes stressful experience. With the help of a short-term finance solution from a development exit loan, you can successfully complete your development project and access the profit from it.

    Welcome to One

    Our team of property-related finance specialists provide residential and commercial property developers, like you, with quick access to support for your property development project. We provide access to a range of specialist brokers tailored to your specific circumstances.

    Get in touch to find out how we can help you secure the best deal for your development exit loan!

    What is development exit finance?

    Development exit finance (also known as sales period finance) is a form of commercial lending that can provide you with the breathing space needed to complete your building project and move on to the next stage.

    Development projects can include:

    • Residential developments
    • Commercial developments
    • Refurbishments

    If you are nearing the completion of your commercial property development and require additional capital to exit and sell the completed site successfully, then this type of short-term finance could be what you need.

    How does development exit finance work?

    The purpose of development exit finance is to bridge the gap between the development phase and the eventual sale or long-term financing solution of a property development project.

    It works by allowing you, the borrower, to release equity tied up in the project, repay your existing loans, borrow more, or settle outstanding construction costs. Ultimately, development exit finance is used to lead to a successful sell and exit strategy and pave the way for the next project.

    Once you have a completed development that is sold, you can then use the proceeds to repay your existing development finance facility, allowing you to exit the project successfully. These development loans are typically secured against the property’s value.

    Utilising our industry knowledge and years of experience, our team of property experts can help you secure the most suitable development exit loan for your building project. Make an enquiry and find out what we can do to help you find the right type of development exit loan.

    When can development exit finance be used?

    Whether you’re building a residential property, refurbishing a commercial space, or converting an old building into modern flats, development exit finance can be your lifeline.

    A development loan or exit loan can be used when development is at practical completion and requires additional lending for the remaining works. This type of financing is suitable for developers who need to unlock equity tied up in the project to repay existing finance or settle outstanding construction costs.

    Development exit finance can also be used when traditional lenders are hesitant to provide further credit.

    Applying for development exit finance

    At One, we have a strong team of property experts with years of experience supporting clients with short-term exit finance and additional bridging loan needs.

    The process of applying for any type of development exit finance is pretty straightforward. However, with the help of a good commercial broker specialist, you can secure the best development exit loan suited to your personal needs.

    They will take the weight off your shoulders by:

    • Harnessing their industry knowledge and contacts
    • Assisting with the application and proposal – ensuring all required documents are attached
    • Providing specialist support with valuation fees, legal fees, loan terms and development exit finance rates

    By putting you in touch with an expert commercial broker, we can help set the foundations for a well-crafted application to secure your development exit finance.

    What is the eligibility criteria for a development exit loan?

    The eligibility criteria for development exit finance varies with different property types, client circumstances and lenders. Finding a good broker is the first step in understanding your position for securing a good development exit loan deal – which is what we’re here to help you with!

    Financial stability

    Lenders want to know that you’ll be able to pay the loan back. They will look at various aspects of your financial health and credit history. If you are concerned about your ability to refinance, then a bridging loan for bad credit might be a more suitable short-term finance solution.

    Progress of a project

    Lenders will assess the property developer’s track record and experience in completing similar projects, as well as looking at the progress of the current building project. Having a viable project that is nearing practical completion will help you secure development exit finance.

    Loan to value

    When applying for a loan, lenders may have a specific minimum and maximum loan amount they will consider. Your eligibility is often determined by evaluating the market value and the property potential.

    Get property development exit finance with One

    To increase your chances of securing a development exit loan, it’s important to use an expert with access to the right funding, the right experience, and, crucially, the right specialist lenders.

    This type of loan can be complex, so seeking professional advice from a broker or financial advisor can help you navigate the application process and secure the best possible loan terms. The good news is that One Commercial Loans have you covered.

    We are experts in helping commercial investors find the best commercial loansbridging loans and development exit finance. With access to an expert team of residential and commercial brokers, we can match you to the perfect broker and help you secure the lending you need.

    Speak to an expert today to find out how we can help.

    Frequently asked questions about development exit finance

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    About One Commercial

    One Commercial have over 100 years of property experience. At One Commercial we like to use a “one stop shop” approach, utilising the whole market to support our clients in a wide range of property related finance.Their job is to make sure that they have done the hard work by matching your situation to the right commercial lender and for the best deal.

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