Development Exit Finance
Development Exit Finance
Adelpha Finance can quickly arrange development exit finance, a short-term bridging loan solution for property developers used to repay a development finance loan. This product provides property developers with the breathing space to find buyers or finish minor development works, such as internal refurbishments.
If your property development is nearing completion, Development Exit Finance allows you to pay off any existing loan secured against the project when your development is, or approaching, practical completion.
The form of finance is designed to be short-term and used to repay your existing development finance, which would likely be at a higher rate than the proposed Development Exit Finance, thus produce an instant saving.
As well as a lower rate, it can remove the pressure to sell the development in a rush against potential extension fees levied by the development lender. A development exit loan can provide the time needed to market the development appropriately to maximise returns.
Since a near completed project represents lower risk than a new, or partly completed, the re-finance will not only be at a lower rate, but may also allow you to release some additional cash to explore your next project before the existing one has sold.
Interest on this form of finance can be serviced monthly or rolled and repaid on redemption, thus there can be no monthly payment to make.
Key features of Development Exit Finance:
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Up to 80 LTV%
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Arrangement Fees from 1% on developer exit products
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Interest Rates typically range from 0.40% – 0.75% per month
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Interest can be rolled up, retained or paid monthly
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No exit fees or Early Repayment Charges (ERC’s)
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Term of up to 36 months
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Available in England, Scotland, Wales and Northern Ireland
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Facilities for first time developers are available
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Option to retain part of your proceeds from every unit sold
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Adverse Credit cases can be funded
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Fast completions possible with exit finance