Exit Finance After Development:
How to Avoid Delays.
Exit finance, also known as development exit funding is a vital but often overlooked stage in the property finance lifecycle. It can make the difference between a smooth, profitable exit and a costly, stressful overrun. At Springboard Funding Ltd, we’ve seen how even experienced developers can face unnecessary delays when refinancing or repaying a development loan. Here’s how to avoid them and ensure your transition from construction to completion runs seamlessly.
What Is Exit Finance?
Exit finance is a short term loan that repays an existing development facility once a project is complete or nearly complete. It gives developers extra time to sell completed units, release equity, or refinance into longer term finance such as a buy to let or investment mortgage.
It’s typically unregulated, meaning it’s available for business and investment purposes not for owner occupied homes.
Common uses include:
• Refinancing a completed or near complete development
• Releasing capital for a new project
• Reducing monthly interest costs compared with development finance
• Allowing more time to market and sell units
Why Delays Happen in Exit Finance:
Even though exit loans can complete in as little as 5–10 working days, developers often face avoidable setbacks that slow the process. These usually fall into one of five key areas:
1. Late Application:
Many developers wait until their development facility is about to expire before applying for exit finance. This creates time pressure, limits lender choice, and may trigger default interest. Apply for exit funding at least 4–6 weeks before your current loan matures.
2. Incomplete Paperwork:
Missing documents like completion certificates, warranties, or updated valuations are a common source of delay. Lenders need full visibility before releasing funds. Have your valuation, building control sign off, insurance, and tenancy or sales information ready early.
3. Unclear Exit Strategy:
Lenders will always ask: How will this loan be repaid? If the exit plan (e.g. sales pipeline or refinance offer) is vague, approval slows or stalls. Present a clear, evidence backed exit such as reservation agreements, proof of refinance, or marketing updates.
4. Unrealistic Timelines:
Even with ‘fast bridging,’ legals, valuation, and due diligence take time. Assuming you can complete in 48 hours often leads to missed deadlines. Work backwards from your completion date and communicate early with your broker, solicitor, and lender.
5. Choosing the Wrong Lender:
Some lenders focus on speed, others on price and few excel at both. Picking a lender unfamiliar with your asset type or project structure can cause underwriting friction. Use a specialist broker who understands your development history and can pre-empt lender questions.
How to Streamline Your Exit Finance Application:
To keep your refinance on schedule, follow these best practices:
1. Start early: ideally when your project is 80–90% complete.
2. Engage your broker proactively: we can pre-vet lenders and highlight potential red flags.
3. Prepare documents in advance: valuation, cost summary, completion certs, and planning permissions.
4. Communicate with your solicitor: delays often come from legal back and forth, not underwriting.
5. Be transparent: disclose issues like snagging, extensions, or title updates upfront.
Exit finance should be a bridge, not a barrier. Planning early prevents last minute rescue funding or forced sales.
Typical Exit Finance Terms:
Feature: Typical Range:
Loan Size: £250,000 – £25 million+
Term: 3 – 18 months
Loan to Value (LTV): Up to 75% of GDV
Interest Rates: From 0.55% per month
Speed: 5–10 working days typical
Use: Repay development facility, release equity, extend sale period
Expert Insight:
“The biggest cause of exit finance delays isn’t lenders it’s timing and paperwork. Developers who prepare early and use experienced brokers rarely miss deadlines. A proactive approach can save tens of thousands in default interest or forced refinancing.”
Important Notice:
We provide unregulated exit finance for property investors, companies, and developers. Our services are not authorised or regulated by the Financial Conduct Authority (FCA) and are not suitable for owner occupied or consumer residential properties.