Bridging — Development Exit
Cheaper short-term debt that repays your development facility at practical completion, releases surplus equity and gives sales the time they need.
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Last updated Reviewed by our Clifton International finance team.
In short
Development exit finance is a bridging loan that repays a development facility at or near practical completion, typically up to 75% of open-market value at around 0.55%–0.80% per month. Because build risk has gone the rate is lower than development debt, and sales proceeds redeem the loan unit by unit.
At a glance
Figures reviewed:
Indicative figures for guidance only, correct as at July 2026. Rates, costs and timelines vary by lender, borrower profile, asset and jurisdiction, and are not an offer of finance. How we derive these figures.
Last reviewed . Read the full Key facts methodology, or speak to our team for a quote based on your circumstances.
At a glance
Development exit refinances a completed or near-complete scheme onto cheaper short-term money, releasing profit and removing the pressure of an expiring facility.
| Feature | Development exit finance | Stay on the development loan |
|---|---|---|
| Pricing | 0.55% – 0.85% per month | Typically 0.9% – 1.3% per month equivalent |
| Loan basis | Up to 75% of gross development value | Costs plus drawdown schedule |
| Equity release | Yes — surplus can be released at completion | Rarely before final unit sales |
| Monitoring | Light or none post practical completion | Monitoring surveyor visits continue |
| Sales pressure | 12 – 18 months to sell at full value | Facility expiry forces discounted sales |
| Term | 3 – 18 months | Fixed to the original build programme |
| Exit | Unit sales or investment refinance | Unit sales |
Swipe the table sideways to see all columns.
Best arranged as the scheme approaches practical completion, before the existing facility runs to expiry or default pricing.
Why clients choose us
Construction risk is priced out, cutting the monthly interest against your development facility.
Facilities sized above the outstanding debt where GDV supports it, freeing cash for the next scheme.
A 12–18 month runway avoids discounting units to hit a development loan expiry.
Agreed redemption amounts per unit as sales complete, with the balance on remaining stock.
Many lenders engage from around 90% complete, subject to warranty and sign-offs.
Apartment schemes, housing, conversions and mixed commercial-residential developments.
Borrower eligibility
Typical lending criteria
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Recent transactions
Published transactions from our own case study library — select any to read the full brief.
Ibiza · Bridging
€3m · 60% LTV · 12-month term
€3m bridging loan secured against a residential property in Ibiza to complete significant development works on a London property, after further advances against the UK asset were not available.
Leeds · Bridging
£1.3m · 65% LTV · 12-month regulated bridge
£1.3m regulated bridge to help a Leeds family secure a significantly larger home before selling their existing property — funded in under 3 weeks.
Malaga · Bridging
£230k · c.25% LTV · 36 days to completion
A regulated bridging loan raised against an unencumbered Edinburgh home to secure a £230k apartment in Malaga, Spain — completed in 36 days.
Frequently asked
Development exit finance is a bridging facility that repays a development loan once a scheme is complete or near practical completion, giving the developer a cheaper, longer runway to sell units without sales pressure.
Construction risk has gone. With the scheme built and a warranty and building regulations sign-off in place, the lender is pricing a finished asset rather than a build programme, so margins fall materially.
Yes. Where the gross development value supports it, exit finance is often sized above the outstanding development debt so surplus equity is released to fund the next site.
Often yes — many lenders will consider a facility from around 90% complete, or immediately on practical completion where warranties and sign-offs are ready.
Typically up to 75% of open-market value or around 70% of gross development value, with sales proceeds applied to the loan as units complete.
Facilities are structured with part-release, so each completed sale redeems an agreed amount and the remaining balance stays on the unsold units.
A part-built scheme with an unfinished programme is usually a refurbishment or completion-funding case rather than exit finance, because build risk remains. We would look at a development or heavy-refurbishment facility instead.
Two to four weeks is typical once the warranty, building regulations certificate and sales evidence are available; the existing lender's redemption timetable is usually the constraint.
UK bridging finance by scenario
Each page covers the structure, criteria, costs and typical timescales for one bridging use case — with real completed transactions.
Calculate interest, arrangement and exit fees, valuation and legals — with a fully worked £510,000 example.
View pageRegulated and unregulated lender panels compared — and why bridging is placed through a specialist, not shopped direct.
View pageFacilities structured for the 28-day auction completion window, with pre-auction agreements in principle.
View pageComplete on your onward purchase when a buyer withdraws or the chain collapses.
View pageWhich regime applies to your case, and what changes in criteria, cost and process.
View pageRaise capital behind an existing mortgage without disturbing the first charge.
View pageUK-secured short-term finance for British expatriates, foreign nationals and offshore SPVs.
View pagePurchase-plus-works and heavy refurbishment finance with staged drawdowns.
View pageRelated UK services
Residential, buy-to-let and high-value mortgages for UK and international clients.
Learn moreFast short-term funding for auctions, chain-breaks, refurbishments and exits.
Learn moreSenior debt and stretched-senior facilities for residential and mixed-use schemes.
Learn moreInvestment and owner-occupier funding for offices, hospitality, retail and logistics.
Learn moreImproved terms, capital raising and exit refinance for maturing UK facilities.
Learn moreReady to explore your options?
Send us the scheme, the outstanding debt and your sales position. A specialist will respond within one working day with indicative terms.