🏡 Case Study: Turning an Unfinished Dream into a Completed Development – Development Finance Exit – How Strategic Refinancing Maximized Profit
Problem
A client was referred to us by their solicitor after running into a major issue.
They had just completed a high-spec bungalow development, pushing the GDV higher than expected—great news, right? Not quite.
Development finance terms are typically short, and if a project isn’t sold in time, developers risk high penalty interest, increased financial strain, and pressure to accept below-market offers just to clear outstanding debt. This can significantly impact profitability and cash flow for future projects.
How We Helped:
✅ 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 to offset the high LTV caused by penalties
Solution
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. As a result, 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
💰 This is exactly why having the right finance at the right time is crucial. Had they been forced into a quick sale, they could have lost tens of thousands. Instead, they walked away with a higher profit and a much smoother exit.
💰 If your development finance term is coming to an end, proactive refinancing could be the key to maximizing your returns. Don’t leave your exit strategy to chance—reach out today for expert advice.
