Problem
A property developer was referred to us after running into a major issue. They had just completed a high-spec residential development, pushing the GDV higher than expected.
Development finance terms are typically short (12–24 months). A significant share of developers face challenges securing a sale within this period. If a project isn't sold in time, developers risk:
- High penalty interest
- Increased financial strain
- Pressure to accept below-market offers just to clear outstanding debt
This client was facing exactly this situation.
Solution
- Negotiated with their existing lender to reassure them of the imminent exit strategy
- Secured a 12-month bridging refinance, giving the client ample time to market the property properly and attract the right buyers at the right price
- Cross-charged one of their BTL properties, using its equity as additional security to reduce the lender's risk and offset the high LTV caused by penalties
Outcome
- No more pressure to rush a sale
- With strategic refinancing in place, the client had the flexibility to market the property effectively, ensuring maximum exposure through staged viewings, targeted outreach to HNW buyers, and premium online listings
- Strong buyer interest led to a competitive bidding war, pushing the sale price £30k over the original asking price
- A much happier client who could sleep easy knowing they had control over the sale
Key Lesson
Development exit finance isn't just about buying time — it's about protecting profit. Every developer should start planning their exit 3–4 months before development finance expires. Being forced into a sale by penalty pressure is the most common and most avoidable way to lose value on a development.
Explore this type of finance
Development exit finance · Bridging loans
More case studies
Development exit: pressure off, return maximised · Smart land finance · Commercial refinance under pressure