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How Development Exit Finance can help the property sector keep moving

30-10-2023|Anthony Gougeon

At Ultimate Finance we specialise in providing the right funding at the right time to help keep businesses moving, and we have developed a range of tailored Residential Bridging Loans that meet the needs of property developers and investors in today’s economic climate. To help provide solutions fit for every developer’s ambition, we offer finance through several types of Bridging Loans, each specifically addressing a common requirement within the property industry. One of those is Development Exit Finance, a solution that directly supports those looking to raise finance against a completed or nearly completed development.

What is Development Exit Finance?

Development Exit Finance is a type of short-term loan that provides funding against a residential project that is completed or nearing completion. It can be used to repay an existing development lender, or to release cash tied into a development that was self-funded so that funds can be redeployed into the acquisition of the next development whilst waiting for the current project to achieve its exit route, predominantly either refinance onto a term product or sell.

Why is Development Exit Finance a great solution for the property sector?

When it comes to property, time and money usually can make a big difference and using a Development Exit Finance loan can provide access to the funding key to completing a project. The funding solution can also help maximise profitability by allowing for more time to sell the properties  and ensure they sell at the best price possible. Finally, it can also help ensure that cash goes further by offering savings on interest payments, as Development Exit Finance loans typically have lower interest rates than other development loans.

Some specific benefits of using Development Exit Finance are:

  • Flexibility: Development Exit Finance loans can be tailored to meet the specific needs of a project, including the amount borrowed, term and how the interest is repaid
  • Speed: A loan can be arranged quickly, with funding in place in just a few days depending on the provider – this helps developers ensure a swift completion of their project so they can sell and move onto the next
  • Security: The loan is usually secured against the value of the development project, limiting the risks for lenders and ensuring lower rates than other forms of finance

Why choose Ultimate Finance as a funding partner?

At Ultimate Finance we know what it takes to help keep businesses moving and we have been providing solutions that make a difference for over 20 years. Our Bridging Finance team are experts at working in partnership with brokers and introducers to tailor Bridging Loans that help developers meet their ambitions.

Our Development Exit loans provide up to £4m at a maximum LTV of 75%, with rates starting as low as 0.89% per calendar month (up to 65% LTV) and 0.94% per calendar month (up to 75% LTV). We can lend up to 75% of the gross development value where the project has reached practical completion, or up to 75% of the current value of the site pre practical completion, provided the properties are fully wind and water tight.

We also allow additional equity release above and beyond any repayment, to provide borrowers with the possibility to realise a portion of their development profits before executing their long-term exit strategy, which is ideal for those looking to start gathering funding for an upcoming project.

Additionally, there are unique benefits to choosing Ultimate Finance as a funding partner:

  • Trusted lender: we are rated the market-leading score of 4.9/5 on Trustpilot and have already provided over £10bn to UK SMEs
  • Fast and flexible decision making: receive a decision in principle within just 24 hours and a fully credit-backed offer in 72 hours
  • Competitive interest rates and no exit fees
  • Access to funding experts, specialist underwriters and product specialists empowered by the best technology

Discover how we already help developers with Development Exit Finance, find out more about our range of Residential Bridging Loans or Register as an Ultimate Finance Introducer today

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If you would like to talk to us about any funding needs, call us on 0800 121 7757, register as an Introducer or request a quote for your business today