Developer Exit Bridging Loans

Designed to be fast and flexible.

Development exit finance is a short-term bridging loan solution for property developers, used to repay a development finance loan. This bespoke bridging product provides property developers with the breathing space to find buyers or finish minor development works, such as internal refurbishments. It is also often known as a developer exit loan.

Development exit finance is flexible and adaptable and could potentially:

Release equity
Reduce financial stress and cost
Relieve the pressure of deadlines and provide more time to sell the new assets

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Try the MFS bridging loan calculator to estimate the amount you can borrow, interest and other costs. Just enter the market value of your property, any outstanding mortgage, the amount you’d like to borrow and the months you’d need the money for. The calculator is easy to use and you get instant results.

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Developer Exit Bridging Loan:

What you need to know

What are development exit loans use for?At what point can I inquire about development exit finance?What is the difference between development finance and development exit finance?What are the advantages of using a Development Exit Bridging Loan?

Development exit bridging helps you to repay an initial development loan. However, in the lead up to the development finance repayment deadline, the developer may find they need more time to either sell properties for premium prices or organise long term finance. We provide development exit finance to facilitate, which the developer can use to pay back the development loan.

Key benefits include:

Gives you additional breathing space to find the right buyers for you, and sell the properties for a premium price
You do not need to cut property prices in order to sell them quickly
Provides ample time to implement a long-term mortgage or facilitate an alternative financial solution

At the start of the development process, property developers will first need to purchase land and apply for development finance to fund the project before construction can commence.

When the project begins to draw to a close, you may need to start considering how you intend to repay the development loan. Should you require more time to sell your assets, or finish minor development work, this is where our developer exit loan could be utilised. Development exit bridging loans are here to help you to repay an initial development loan.

MFS do not supply development loans that require planning permission or involve structural changes. We also do not lend against land. We can provide development exit loans to help finish your development if the asset has practical completion and building regulation sign off in place.

Development Loan:

A development loan is when the funds received are to finance the construction of the property or properties from the ground up.

Developer Exit Bridging Loan:

A developer exit loan is when the funds received are to finance the repayment of the initial development finance. This could be to finish any last minute refurbishment works on the property, or to provide breathing space for the developer to find a buyer.

Using a developer exit loan has two key advantages:

1) It creates more time to sell the units individually

Whether this relates to several individual builds or a block of flats a development bridging loan could provide you with additional time to wait for right buyers who are more likely to purchase at the asking price.
This is a flexible option, with many ways to set up the agreement and repayment terms. As leaders in bespoke bridging, we can tailor your loans so that they fit your requirements.
You can repay the bridging loan in stages, as each unit sells. You’ll be reducing your overall bridging loan and therefore minimising the interest payable, reducing your monthly repayments.

2) Pay back the development bridging loan and organise a long-term financial solution

Development finance can become expensive should you require an extension, depending on the extension charges of your development lender.
Finding a long-term finance solution on a new development can take some time.
Our bridging product allows you to ‘bridge the gap’ between the end of your initial development loan and the completion of your long-term solution, providing a strong exit strategy for your developer exit loan.