A development exit loan is a type of short-term finance used in the UK property market to help developers exit from a development project by refinancing their existing debt. This type of loan is typically used towards the end of a construction project when the property is nearing completion or has already been completed, and the developer wants to refinance or repay the original development loan.

The purpose of a development exit loan is to provide a flexible and quick financing solution to developers who need to exit a project quickly, without having to wait for the sale or refinance of the completed property. The loan can be used to refinance existing debt, provide working capital, or even purchase a new property.

The terms and conditions of a development exit loan will vary depending on the lender and the specifics of the project. Typically, these loans are offered for a term of up to 18 months and are secured against the completed property. The loan-to-value ratio is typically between 50% and 70%, although this can vary depending on the lender’s risk appetite and the project’s specific circumstances.

Overall, a development exit loan provides developers with a flexible and efficient way to exit a development project by refinancing their existing debt. These loans can help developers unlock capital, reduce their overall financing costs, and move on to new projects