Exit Finance for £1.6m Coastal Development

Developer exit facility arranged to release capital from a completed coastal holiday property

The situation

A property developer approached Expert Finance after completing a high-value residential property in a sought-after coastal location.

The newly built holiday property had been completed and was being marketed for sale at around £1.675 million. While the development had reached completion, around £750,000 of development borrowing remained secured against the property.

At the same time, the developer had a second property nearby which was already mid-renovation. The remaining works on that project required additional capital in order to complete the refurbishment and bring the property to market.

The challenge was therefore to refinance the existing development borrowing of approximately £750,000, while also releasing additional capital that could be used to finish the second project.

The approach

Expert Finance reviewed the completed development alongside the wider project position.

Although the finished coastal property represented a strong asset, the funding structure needed to achieve two things simultaneously: repay the existing development borrowing and release additional capital.

A developer exit facility was structured around the completed property, with additional security introduced through a cross charge over the developer’s main residence.

Importantly, this structure allowed the facility to be completed without requiring consent from the existing residential mortgage lender, enabling the funding to be delivered efficiently.

The facility included a stepped drawdown structure, allowing capital to be released in stages as the adjoining project progressed.

The application was supported by:

• the completed coastal property marketed at around £1.675m
• existing development borrowing of approximately £750k
• the requirement for around £350k to complete the second renovation
• the developer’s experience in delivering residential property projects

The outcome

The developer exit facility repaid the original development borrowing while releasing capital that allowed the adjoining property renovation to be completed.

This enabled the developer to continue progressing the second project while the completed coastal property remained on the market.

Developer exit funding can provide a practical solution in situations where completed developments hold significant capital but the next opportunity is already underway.

Considering developer exit finance?

When capital is tied up in completed developments, developer exit finance can provide a way to refinance existing borrowing while releasing funds for the next project.

If you are completing developments and looking to unlock capital to progress your next project, Expert Finance can help structure the right funding solution.

Start the conversation today.