Development exit bridging loans to repay your development lender
A development exit bridging loan refinances your development facility once the build is finished or nearly finished. It repays the development lender and gives you time to sell units at full price, or let them and refinance.
Rates start from 0.64% a month, up to 80% LTV. Most cases run 6 to 18 months.
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The short version
- A development exit bridge repays your development lender once the build is complete or nearly complete, so you're not forced to sell on their timetable.
- Rates start from 0.64% a month. Most cases price between 0.75% and 0.90%, and our average over the last 12 months was 0.79%.
- You can borrow up to 80% LTV on a strong case, from £26,000 to £25 million and above.
- If the scheme is wind and watertight but unfinished, a finish-and-exit loan can refinance it and fund up to 100% of the remaining works.
- Units can be sold during the term. Each sale pays down part of the loan, usually 90% to 95% of the net proceeds.
- Start 6 to 12 weeks before your development facility expires. Leave it later and you have fewer lenders to choose from and less time to negotiate.
What is a development exit bridging loan?
A development exit bridging loan is short-term finance that pays off your development lender once the build is finished or nearly finished. Because the construction risk has gone, it's usually cheaper than staying on the development facility. It gives you 3 to 24 months to sell units at full market value or refinance onto a buy-to-let or commercial mortgage.
Here's the situation most developers are in when they call us. The build is done or close to it. Some units are sold or reserved, some aren't. The development facility ends in a few weeks, and the lender wants its money back whether or not the sales have caught up.
The development lender then offers an extension with a fee and the same high rate, or the loan drifts into default interest. Neither is a good use of your profit.
A development exit bridge repays that lender in full and gives you a new term to finish selling or refinancing. The rate is lower because the build risk has gone. There's usually no monitoring surveyor. And the loan is set up around how you'll actually repay it: unit sales, a refinance of the units you keep, or both.
Can you release equity at the same time?
Often, yes. Lenders lend against the finished value, not the build cost. If your development debt is well below 80% of what the completed units are worth, the exit bridge can repay the lender and release the difference to you. Developers use it to fund the deposit on the next site, pay a contractor's final account or cover marketing while units sell. The money comes out at completion. You don't wait for sales.
Development exit or finish-and-exit?
People use the two names interchangeably, but they're different loans with different lenders and pricing. Which one you need depends on how finished the scheme is.
Development exit
The scheme is complete or practically complete. The loan repays the development lender and gives you time to sell or refinance. Only snagging and finishing works remain.
Up to 80% LTV, from 0.64% pmFinish-and-exit
The scheme is wind and watertight, with works still to do. The loan repays the development lender and funds up to 100% of the remaining works in arrears, so you need one facility, not two.
Up to 75–80% LTV, from 0.75% pmSee finish-and-exit below for what qualifies.
When do developers use development exit finance?
Usually when the build risk has gone but the facility is close to its end date. These are the situations we see most often, and what helps each one get approved.
| Situation | What it usually means | What helps |
|---|---|---|
| Development facility maturing | The lender wants repaying, and extension terms are expensive or not on offer | Redemption statement, scheme summary and a realistic exit timeline |
| Practical completion reached | Build risk has passed, but sales or the refinance are still in progress | Completion status, building control sign-off and current values |
| More time needed to sell | You want full market prices, not a bulk or discounted sale | Sales strategy, comparables and any reservations |
| Refinance not ready yet | The long-term lender needs tenancies, seasoning or a title split first | The intended refinance route and why it needs time |
| Capital for the next project | Your equity is tied up in a finished scheme while sales go through | Sensible leverage, clean title and a good track record |
| Wind and watertight, not finished | A limited amount of work remains before the best exit is possible | Schedule of works, costings and contractor details. This needs a finish-and-exit loan. |
When should you start arranging a development exit?
Start 6 to 12 weeks before your development facility expires. That gives you time to compare lenders, agree the valuation route and get the legal work done. Leave it until the last few weeks and you'll have fewer options, worse pricing and no room to negotiate.
12 weeks out: get your pack together
Unit schedule, current values, sales position, redemption statement, works position and your exit plan. Get indicative terms and find out which valuation route suits the scheme.
8 weeks out: instruct
Choose the lender, instruct solicitors and order the valuation if one is needed. Raise any title, warranty or building control issues now. Most development exits that run into trouble do so at the legal stage.
4 weeks out: push to completion
Valuation back and credit approved. Legals progressing. Confirm how the outgoing lender's redemption will work, especially if units are mid-sale and the figure will change.
Facility expiry: exit bridge in place
The development lender is repaid. You now have time to sell at market prices, finish any outstanding works, or move retained units onto longer-term debt.
An expired development loan usually moves into default or an expensive extension. Default interest is often 1.5% to 2% a month above the contracted rate, plus the lender's legal costs and penalty fees. All of that is added to what you owe, and it can wipe out the equity an exit bridge would have protected.
The real cost of leaving it too late
Default interest is only part of it. On a £2.8 million balance, an extra 1.5% a month is £42,000 a month on top of the normal rate. The redemption figure rises every week, so the new lender has to lend more, and that can push you past the leverage it will offer.
You also lose choice. With a few days left you take whichever lender can move fastest, not the one with the best terms. And if the development lender starts enforcement, some exit lenders won't look at the case at all.
Development exit bridging rates and terms in 2026
Rates start from 0.64% a month on the strongest, lowest-risk cases. Most developers pay between 0.75% and 0.90%, and our average across the last 12 months was 0.79%. You can borrow up to 80% LTV, from £26,000 to £25 million and above, over 3 to 24 months.
| Feature | Typical position | Notes |
|---|---|---|
| LTV | Up to 80% | Depends on scheme quality, valuation basis, sales and the strength of the exit |
| Rate, standard exit | From 0.64% pm | Lower leverage and completed schemes price best. Our 12-month average: 0.79% pm |
| Rate, finish-and-exit | From 0.75% pm | A little higher, because works are still to be done |
| No-valuation route | From 0.73% pm | Larger loans and stronger borrowers. Quicker and cheaper upfront |
| Loan size | £26,000 to £25m+ | Higher limits on larger multi-unit schemes |
| Term | 3 to 24 months | Most cases run 6 to 18 months |
| Arrangement fee | From 1% | Deducted from the loan on completion |
| Broker fee | None upfront | We are paid by the lender on completion, disclosed before you proceed |
| Valuation basis | OMV, GDV-led or none | Some lenders lend against GDV before the scheme is fully finished |
| Remaining works | Up to 100% in arrears | Finish-and-exit only. Buildings must be wind and watertight |
| Partial redemptions | Usually available | Typically 90% to 95% of each unit's net sale proceeds |
| Interest | Retained, rolled or serviced | Chosen to suit your day-one net advance and exit timing |
| Borrowers | UK and non-UK | Overseas borrowers and new SPVs with no trading history considered |
Rates as of October 2026. Every case is priced individually by the lender.
See what your scheme could borrow
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Is a development exit bridge cheaper than staying in development finance?
Usually, yes, and often by a large margin. Development finance tends to cost more than 1% a month, extensions add fees on top and the monitoring surveyor stays on the bill. An exit bridge typically prices around 0.79% a month with no monitoring surveyor. On a £2.8 million balance that's about £8,700 a month less in interest alone.
Rules of thumb: exit or extend?
- Exit if you need more than two or three months beyond the facility end date to sell or refinance. The monthly saving soon outweighs the new arrangement fee.
- Exit if your development lender is charging an extension fee, default interest or a higher rate to stay on.
- Exit if you want to release equity for your next scheme. Development lenders rarely give that back early.
- Consider extending if every unit has exchanged and will complete within a few weeks, and your lender offers a short extension with little or no fee.
Here's the full comparison over 12 months on a £2.8 million balance across a 10-unit scheme.
| 12 months | Staying in development finance | Development exit bridge |
|---|---|---|
| Monthly rate | 1.10% pm | 0.79% pm |
| Interest over 12 months | £369,600 | £265,440 |
| Extension or arrangement fee | £42,000 (1.5%) | £28,000 (1%) |
| Monitoring surveyor | About £12,000 | £0 |
| Total estimated cost | £423,600 | £293,440 |
| Estimated saving | £130,160 |
Illustrative only. Development finance assumed at 1.10% pm with a 1.5% extension fee. Your saving depends on your rates, fees and timings.
The exit bridge costs £28,000 to set up. At £8,680 a month less interest, that fee is covered in a little over three months, even before you count the extension fee and the monitoring surveyor you no longer pay. Over a shorter three-month exit the bridge still comes out about £43,000 cheaper on these figures.
Finish-and-exit: when the scheme isn't finished yet
A finish-and-exit loan is for schemes that are wind and watertight but still have work left to do. It repays the development lender and funds up to 100% of the remaining works in arrears, in one facility. Total borrowing, including the works, goes up to 80% LTV. You don't need to arrange completion funding and then a separate exit bridge.
Works that usually fit
- Snagging and final fit-out
- External works and landscaping
- Communal area finishing
- Final services connections
Works that usually don't
- Structural alterations
- Significant groundworks
- Shell-and-core buildings
- Works that are a large share of the total build cost
Lenders will want a schedule of works, costings and contractor details. On simpler works, some lenders release funds without a monitoring surveyor, which saves time and cost. Others want a surveyor to sign off each stage.
What does wind and watertight mean to a lender?
Wind and watertight is the line lenders care about most. In practice it means the roof is on and finished, the external walls are complete, and the windows and external doors are fitted and lockable. Weather can't get in and the building is secure.
Inside, first fix is often done or under way, but kitchens, bathrooms, flooring and decoration can still be outstanding. Once a building reaches this point, many lenders who won't touch an unfinished scheme will refinance it, even with significant internal works left. If scaffolding is still up or the roof isn't finished, you're usually still in development finance territory.
How are development exit loans valued?
It depends on the loan size, the property, the leverage and how finished the scheme is. Larger or more complex schemes usually need a full RICS valuation. Smaller, cleaner cases can use a desktop valuation, and stronger borrowers on larger loans may not need one at all.
| Route | What it means | Best suited to |
|---|---|---|
| Full valuation | A RICS surveyor inspects and reports on current value, saleability and GDV | Larger loans, multi-unit sites and complex schemes. Opens up the most lenders |
| GDV-informed | Values the scheme on its completed value, even if it isn't quite finished | Near-complete schemes. Allows higher borrowing against the finished value |
| Desktop | No site visit. Uses existing data and market evidence | Cleaner, lower-risk properties in well-evidenced areas |
| No valuation | No external valuation is instructed | Usually loans of £1m+ for stronger borrowers. From 0.73% pm |
How do partial redemptions work as units sell?
You can sell units during the term, and each sale pays off part of the loan. A set share of each unit's net sale proceeds, usually 90% to 95% after agent and legal fees, goes to the lender. You keep the rest. The loan shrinks as the scheme sells, so there's no single lump sum to find at the end.
| Event | Sale price | Loan before | To lender (92%) | To you | Loan after |
|---|---|---|---|---|---|
| Day 1 | £2,800,000 | £2,800,000 | |||
| Unit 1 sells | £350,000 | £2,800,000 | £322,000 | £28,000 | £2,478,000 |
| Unit 2 sells | £350,000 | £2,478,000 | £322,000 | £28,000 | £2,156,000 |
| Unit 3 sells | £375,000 | £2,156,000 | £345,000 | £30,000 | £1,811,000 |
| Last 7 units sell | £2,450,000 | £1,811,000 | £1,811,000 | £639,000 | £0 |
Illustrative 10-unit scheme with a £3.5m GDV. The redemption percentage is agreed at the start and written into the facility agreement.
How are development exit bridging loans repaid?
By selling the units, refinancing the ones you keep onto a buy-to-let or term loan, or a mix of both. Whichever route you take, the lender needs to see that it's realistic and timed properly. Less build risk doesn't mean a weaker exit plan will do.
| Exit | What it looks like | What lenders want to see |
|---|---|---|
| Individual unit sales | Units sold over time, with a partial redemption on each sale | Comparables, agent strategy, reservations and a realistic sales timeline |
| Block sale | The whole scheme or a group of units sold in one go | Buyer interest, heads of terms or a clear case for the price |
| Buy-to-let or term refinance | Units you keep move onto long-term debt once let | The likely lender, your letting plan and the expected valuation |
| Mixed exit | Some units sold, some kept and refinanced. Common on larger schemes | Clear redemption terms and a credible timeline for both routes |
What do lenders look at on a development exit?
Mainly three things: how finished and low-risk the scheme is, whether the development lender can be repaid cleanly, and how believable your exit is. The stronger and better organised your pack, the faster it goes.
How finished the scheme is
Complete, practically complete or wind and watertight. Building control position, completion certificate and any outstanding items.
The debt being repaid
Who the development lender is, the balance, accrued interest, fees and the redemption statement. Sort out any complications early.
Sales evidence
Units reserved, exchanged or sold, agent feedback, comparables and a plan for the unsold stock.
Your track record
A good delivery history and an organised pack make lenders more comfortable and speed things up, especially on larger schemes.
Title and legal
Clean title, building warranties and new home guarantees. Legal issues cause more delays than anything else, so flag them early.
New SPVs and overseas borrowers
Both considered. A new SPV with no trading history can qualify where the scheme and exit are strong. Projected income can be taken into account.
How sales evidence and reservations affect your terms
The valuer decides what the units are worth. Your sales evidence decides how confident the lender is in that figure, and that shows up in the leverage and the rate.
- Exchanged units carry the most weight. The lender knows the price and roughly when the money arrives.
- Reservations help, particularly with a deposit paid and solicitors instructed. They show the asking prices are realistic.
- Agent feedback and comparables matter most on unsold stock. Recent sales of similar new-build units nearby support the valuation.
- Units marketed for months without interest work against you. Lenders may lend less on them or ask for a price review.
A scheme with half its units exchanged and strong comparables for the rest will get better terms than an identical scheme with nothing under offer.
How does a development exit work, from enquiry to completion?
We review the scheme, match it to the right lenders and confirm indicative terms. Then the valuation, credit and legal work run together until the development lender is repaid. The quickest cases are the ones where the unit schedule, values, redemption statement and exit plan are ready from day one.
Review and lender match
We look at the scheme, its value, any remaining works, the existing debt, you and your exit. Then we match it to the right exit or finish-and-exit lenders across our panel of 50+, including those offering GDV-led or no-valuation routes.
Indicative terms
Rate, LTV, valuation route, how works are handled, redemption terms and the legal process are agreed in principle before anything is instructed. Nothing is committed at this stage.
Valuation, credit and legals
The valuation is instructed, title is reviewed, the redemption figure is confirmed and partial release terms are agreed. One law firm acting for both sides can speed this up on the right cases.
Completion
The development lender is repaid and your exit bridge is live. You can now sell at market prices, finish any limited works, or move retained units onto long-term debt.
Development exit case studies
Two recent cases where the existing facility had to be repaid on a tight timetable.
Development exit bridging loan FAQs
What is a development exit bridging loan?
Short-term finance that repays your development lender once the scheme is complete, nearly complete or wind and watertight. It gives you time to sell units at market value, finish limited works, or refinance the units you keep onto long-term debt.
What is the difference between development exit and finish-and-exit?
A development exit loan is for schemes that are complete or practically complete. A finish-and-exit loan is for schemes that are wind and watertight with works still to do. It repays the development lender and funds up to 100% of the remaining works in arrears. They use different lenders and are priced differently.
How do partial redemptions work when units sell?
Each time a unit completes, a set share of its net sale proceeds goes to the exit lender and the loan reduces. That share is usually 90% to 95% after agent and legal fees, and you keep the rest. The lender releases its charge on that unit so the buyer can complete.
What sales evidence and reservations do lenders want to see?
A unit schedule showing what is exchanged, reserved and available, with prices. Reservation forms and deposits, agent feedback and recent comparable new-build sales nearby. Exchanged units carry the most weight. Units marketed for a long time without interest can reduce the loan or lead to a price review.
What are development exit bridging rates in 2026?
From 0.64% a month on the strongest cases at sensible leverage. Most developers pay between 0.75% and 0.90%. No-valuation routes start from 0.73%, and finish-and-exit from 0.75%. Our average across development exit cases over the last 12 months was 0.79% a month.
What LTV is realistic on completed or near-completed units?
Up to 80% of market value on a well-structured case, including any works still to fund on a finish-and-exit loan. Completed schemes with exchanged units and good comparables get closest to that. Schemes with slow sales, unusual units or a weak exit plan usually land lower. Commercial elements are typically funded at lower leverage.
How long does a development exit bridging loan last?
Between 3 and 24 months. Most cases run 6 to 18 months, which allows time to sell the units or complete a refinance. Interest can be retained, rolled up or paid monthly.
When should I start arranging a development exit?
6 to 12 weeks before your development facility expires. That gives you time to compare lenders and sort out the valuation and legal work. Start later and you'll have fewer options and pay more.
What happens if my development facility has already expired?
You can still refinance, but act quickly. Default interest of 1.5% to 2% a month above your rate is likely running, plus legal costs and fees, and all of it raises the redemption figure. Get an up-to-date redemption statement, tell us the position and we'll look for lenders who will refinance an expired facility. Many will, as long as enforcement hasn't started and the scheme is finished.
Can a development exit loan be based on GDV?
Yes, with some lenders. Where the scheme is low risk and the remaining works are limited, they can lend against the completed value or a GDV-informed valuation. That allows higher borrowing when today's value understates what the scheme will sell for.
Can I sell units during the loan?
Yes. Most development exit lenders allow partial redemptions. When each unit sells, usually 90% to 95% of the net proceeds goes to the lender and the rest comes to you. The loan reduces as you sell.
Do I need a monitoring surveyor?
Not always. On finish-and-exit loans with simple, limited works, some lenders release funds without a monitoring surveyor. It depends on the lender, the works and the strength of the case.
Can a non-UK resident get a development exit loan?
Yes. Lenders on our panel accept overseas borrowers. They focus on the scheme, the property and the exit rather than where you live. Expect to provide extra identity and source of funds documents.
Can a new SPV with no trading history get development exit finance?
Yes, where the scheme, the property and the exit are strong. Some lenders will also take projected income into account. The directors' experience and the scheme itself carry more weight than the company's age.
When is a development exit cheaper than extending the development facility?
Usually whenever you need more than two or three months beyond the facility end date. Development finance often costs more than 1% a month plus extension and monitoring fees. On a £2.8m balance, moving from 1.10% to an exit bridge at 0.79% saves about £8,700 a month in interest, which covers a 1% arrangement fee in a little over three months. A short extension is only likely to be cheaper if all units have exchanged and the extension fee is small.
Are development exit bridging loans regulated?
Almost always not, because the property is a development for sale or investment. If you or a close family member plan to live in a unit, that part may be regulated. We arrange unregulated loans and refer regulated cases to an FCA-authorised firm.
Can I get a development exit loan with bad credit?
Often, yes. Lenders focus on the finished value, the sales or refinance plan and the remaining loan term. Past CCJs, defaults or a missed payment can be accepted if explained, though the rate may be higher. Tell us early and we will match you with lenders who take that view.
What is the minimum development exit loan?
Our panel lends from around £26,000 on a single unit up to £25m and more across larger schemes. Smaller loans are usually cheaper to arrange per pound borrowed when the arrangement fee is a percentage, which starts from 1%.
Can I get a development exit loan if the scheme isn't fully finished?
Yes. If the scheme is wind and watertight with limited work left, a finish-and-exit loan repays the development lender and funds the remaining works in one facility. Total borrowing, including the works, goes up to 80% LTV.
What do lenders want to see for a development exit?
A redemption statement from your development lender, a unit schedule with expected values, evidence of build progress or completion such as sign-off or a warranty, and a realistic sales or refinance plan. Recent comparable sales help the valuation.
How quickly can a development exit loan complete?
Straightforward cases can complete within a few days to two weeks. Larger or more complex schemes usually take two to four weeks. The biggest factors are the valuation route and how quickly the legal work and redemption statement come through.
Can I release equity from a completed development?
Often, yes. If the finished value supports it, the loan can repay the development lender and release some of your equity, up to 80% LTV overall. Developers use this to fund a deposit on the next site or cover snagging and marketing costs.
Do I have to make monthly payments on a development exit loan?
Not usually. Interest is normally rolled up or retained, so nothing is due until units sell or the loan is refinanced. Monthly payments are available if you would rather keep the balance down.
Can I get development exit finance on commercial or mixed-use schemes?
Yes. Residential schemes get the highest leverage. Mixed-use and commercial schemes are funded too, though lenders usually want lower leverage on the commercial element, often around 65% of its value.
What happens if the units take longer to sell than planned?
Most loans run for 3 to 24 months, so build in a margin when you choose the term. If sales are slow, the options include extending, refinancing unsold units onto a buy-to-let mortgage or adjusting prices. Talk to us early rather than near the end date.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges development exit and finish-and-exit loans for developers across the UK, from single-unit conversions to multi-unit schemes.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTVs and terms reflect cases we've placed and are reviewed monthly. The 0.79% average covers our development exit cases over the last 12 months. Worked examples are illustrations and round to the nearest pound.
Related bridging products
Each product page has its own criteria and rates.
Repay your development lender on your timetable
Tell us the scheme, how far through the build it is, what you owe and your exit plan. We'll tell you whether it works, which lenders fit and the indicative terms, before you commit to any costs.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Development exit finance is short-term borrowing and needs a clear, credible exit strategy. All figures on this page are indicative, based on our lender panel in October 2026, and subject to lender underwriting, valuation and legal due diligence. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not arrange regulated loans or give financial advice. Regulated cases are referred to an authorised firm.