Development exit finance guides

The Loan-to-Value (LTV) available on development exit finance depends on the type of exit strategy and the asset class:

Bridging Exit Loans, Up to 85% LTV:

Ideal for short-term refinance once a development is complete, giving you time to sell or refinance. This is the most flexible form of developer exit finance, often used when transitioning away from expensive development funding.

Buy-to-Let Mortgages, Up to 85% LTV (Residential):

For developers looking to retain completed units as long-term rental investments, lenders can offer up to 85% LTV based on rental income assessments. This option is especially relevant for multi-unit developments and serviced accommodation.

Residential Mortgages (Owner-Occupier), Up to 95% Loan-to-Value (LTV):

In select cases, such as self-build or first-time occupancy, developers may access up to 95% of the property’s Key Term Value (LTV) using regulated residential mortgage options, especially when moving from build completion into personal occupancy.

Commercial Mortgages, Up to 80% LTV:

For mixed-use or fully commercial developments being retained or refinanced, lenders typically cap LTV at 75-80%. Affordability is usually assessed based on lease terms and tenant covenant strength. We structure exit solutions tailored to your project, whether that’s maximising capital release, securing competitive rates, or refinancing onto a longer-term product. We also work with lenders who offer broker-only exclusive products to access the most competitive terms in the market.

The exit for build to rent development finance is a refinance onto an investment loan against the stabilised rent, or a sale to an institutional investor, instead of unit sales. Lenders test at appraisal that the exit loan, sized on the block's investment value and the exit lender's own income cover test, repays the development facility including rolled-up interest.

A development exit loan refinances a completed scheme's development facility while units remain unsold, usually at a lower rate, with sales proceeds paying down the loan unit by unit. It gives the developer time to sell before the development lender's term expires. On a hotel or other trading asset it bridges the period until trading supports a term mortgage.

Development finance is funding for property development projects such as new builds, renovations and conversions. It covers the construction costs and the other costs of the scheme, and is released in stages as the work progresses.

Development finance is similar in cost and term to bridging loans but is designed for construction and major refurbishment. It can fund up to 100% of build costs and is assessed against gross development value, making it more suitable for larger projects.