Lendus.

Development Exit Finance

Short-term bridging loans that refinance an expiring development facility at practical completion, giving developers breathing room to complete sales or refinance to a long-term investment mortgage without time pressure.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

0.5% – 1.2%

per month

LTGDV

Up to 75%

LTC

Up to 90%

Timeline

1-12 months

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Finance structure

Standard Development Exit Bridge

Rate
0.55% - 0.85%/month
LTC
Up to 85%

Best for: Completed schemes with strong sales pipeline needing 6–12 months to achieve full sell-out without development lender pressure

Retained Investment Bridge

Rate
0.65% - 1.0%/month
LTC
Up to 80%

Best for: Developers retaining completed units for long-term letting who need time to season rental income before refinancing to a BTL or portfolio mortgage

Pre-Completion Development Exit

Rate
0.75% - 1.2%/month
LTC
Up to 90%

Best for: Schemes approaching practical completion where the developer needs to refinance before the development loan expires to avoid default or extension fees

Key considerations

Exit strategies

Phased sale of completed units reducing the loan balance to zero
Refinance to a long-term BTL, portfolio or commercial investment mortgage

Eligibility

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Market context

Development exit finance has grown from a niche product to a mainstream component of the UK development finance market, with lenders estimating that 20–25% of completed schemes now use a development exit bridge before full sell-out. The product emerged in response to development lenders applying increasing pressure on borrowers approaching their loan maturity, particularly after the build cost inflation of 2022–23 extended build programmes. Monthly rates have compressed from over 1% in 2023 to 0.5–0.85% for strong schemes in 2026 as competition between specialist bridging lenders intensified. Total development exit lending is estimated at £2–3 billion annually.

Frequently asked questions

When is the right time to arrange a development exit loan?
The optimal time to begin arranging a development exit facility is 3–4 months before your development loan expires. This allows time for the bridging lender's valuation and legal due diligence without creating time pressure. Waiting until the development loan has already matured or entered default significantly reduces your options and increases your negotiating weakness with lenders.
Can I take a development exit loan before practical completion?
Some specialist lenders will agree terms and prepare legal documentation before practical completion, with drawdown triggered on issue of the practical completion certificate. A small number will advance within 4–6 weeks of anticipated completion — particularly on schemes where the majority of units are already reserved or exchanged. This requires the lender to be comfortable with the contractor's completion programme.
How does a development exit loan compare in cost to extending my development facility?
Development lenders typically charge extension fees of 1–2% of the loan per year plus an increased margin on the rolled interest. A development exit bridge at 0.65% per month equates to approximately 7.8% per annum — often cheaper than the cost of extending a development loan when extension fees are included. The comparison must be done on a total cost basis for the specific term required.
Can I use a development exit loan if some units are already sold?
Yes — the bridging lender will advance against the value of unsold or unlet completed units. As each unit sells, the proceeds are used to reduce the loan balance in a waterfall structure agreed at outset. The lender will set a minimum loan balance below which you must repay the facility in full. Part-sold schemes are common at the point of development exit refinance.
What is a retained interest development exit loan?
A retained interest structure means the full 12 months of interest (at the agreed monthly rate) is deducted from the net advance on day one, so you receive less cash but have no monthly interest payments. This improves cash flow during the sales period and is the most common structure for development exit loans. Alternatively, a serviced structure involves paying interest monthly, which results in a higher day-one advance but requires ongoing cash commitments.

Related project types

Ground-Up Development New Build Residential Refurbishment Finance

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