Development Exit Finance
Completed and near-complete schemes
We arrange development exit and stretch exit facilities within our £2m to £100m+ transaction range. The aim is to replace development debt, support an orderly sales period or release capital once construction risk has reduced.
Typical use cases
- Maturing development loans Replacing a facility that expires before the sales programme has completed.
- Stretch exit requirements Completed schemes outside standard exit criteria that require a more flexible credit assessment.
- Equity release Releasing part of the capital invested in a completed scheme while retaining time to sell remaining units.
- Lender-led deadlines Refinancing where the incumbent lender requires repayment or cannot extend on workable terms.
How we structure the deal
- We review practical completion status, remaining works, sales evidence, current debt and the proposed disposal timetable.
- The facility is sized against completed value and net sales proceeds, with interest and selling costs included in the repayment analysis.
- For stretch cases, the lender presentation explains why standard criteria are not met and why the underlying repayment case remains sound.
- Release mechanics can be agreed for individual unit sales so the borrower retains appropriate proceeds while debt reduces.
What lenders look for
- Completion evidence Practical completion, warranties, building control, utilities and any material outstanding works.
- Sales evidence Reservations, exchanges, achieved prices, comparable evidence and the remaining sales strategy.
- Current facility A clear redemption statement, extension position and explanation of any arrears or lender pressure.
- Residual leverage Loan-to-value after costs and a realistic route to full repayment during the proposed term.
Frequently asked questions
When can a development exit facility be used?
It is generally available when a scheme is complete or sufficiently near completion for the lender to treat the remaining construction risk as limited.
What is a stretch exit facility?
A stretch exit uses a more flexible credit assessment where leverage, elapsed time or another factor sits outside standard development exit criteria.
Can an exit facility release equity?
Potentially. Any capital release depends on completed value, current debt, sales evidence and the lender's maximum leverage.
Can units be sold during the loan term?
Yes. The lender normally agrees unit release prices or a release formula so sale proceeds reduce the facility in an orderly way.
Can you refinance a lender that is pressing for repayment?
Yes, subject to sufficient time and a viable credit case. Early access to the current facility and legal information helps protect the timetable.
Offices
Registered and North of England office: Ayrshire Lodge, Brass Castle Lane, Nunthorpe, Middlesbrough, TS8 9EB.
London office: 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
Telephone +44 7746 212528. Email som@unicorn-commercial.co.uk
Unicorn Capital Advisory is a trading name of Unicorn Capital Advisory LLP (LLP No. OC459692). Finance is arranged for business purposes only and is not regulated by the Financial Conduct Authority.
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