Developer Exit Finance

Developer Exit Finance – the best friend most property developers never knew they had

If you or someone you know is a property developer, then you’re probably aware of what a roller coaster the business can be. From having delays to funding, planning or construction putting you one foot out in the street and divorced to those dizzying heights and satisfaction you have when you finally completed and see those zeros appear in the bank account – Each time enough to compel you to do it all over again and put yourself through the stress, anxiety and (hopefully) reward on the next project. Surmise to say the property game isn’t for the faint hearted!

A common challenge many developers face is when they have finally put a spade in the ground or have recently completed, there can be a lengthy wait until the units have sold and you’re ready to move on to the next project – this can sometimes take over a year. The problem with this scenario is that more than likely the development lender (which pre build charge a hefty interest rate) is knocking on you door for their repayment and there isn’t sufficient cash reserves yet to do this, let alone move on to the next project. Sound familiar? Then Developer Exit Finance could become your new best friend.

What is Developer Exit Finance?

Developer Exit Finance or Development Exit Finance, lets you:

• Refinance you’re existing or recently completed build at a lower interest rate to the original Development Loan
• Pay off the current Lender in full
• All whilst buying yourself a further 18 month window to sell the remaining units

Sound too good to be true? Although this product is fairly new, it isn’t something that property lenders really shout about too much. However through Kingwood’s relationship building over the last 25 years, we have successfully helped X number of developers achieve exactly this so that they can clean the slate of the current project, start planning their next project and keep their cashflow intact – all without the pressure of considering price reductions to get cash in the door in order to keep the business afloat.

How do I arrange Developer Exit Finance?

The good news is achieving this financial restructuring needn’t be daunting or overbearing as there are professionals like us on hand help navigate you through the process and arrange the financing. As a developer all you need to qualify is:
• Have an outstanding loan above £1m
• loans arranged with LTV up to 85%
• Rates start from 0.45% per month

As one of the most experienced brokers in this area, our relationship with lenders mean we can arrange Developer Exit Finance swiftly and smoothly to make your business successful not only now but into the future as well. Our team is on hand to help – find out how we can today.

Take a look at two case studies below and get in touch via our contact form!

Project:

What: 82 Flats in the Midlands
Value: £38m total value
Mid-Project: £6m sold in the Construction Phase
Reason for Finance: Development Lender wanted their money back as the Project was late due to Planners and COVID

Kingswood Arranged a Dev Exit Facility of:

£32m Value of Flats remaining
75% LTV
£24,360,000 Gross Loan inc all Fees
0.5%pcm for 12 months

Get in Touch

If you would like to speak to us about funding options for your project, contact us today.

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