“Developer exit loan can provide the time needed to market and sell the remaining units without under pressure, With no exit fees and interest accruing daily, you can repay the loan as quickly as you wish”
What makes Esteema Development-Exit Finance ‘DIFFERENT’?
‘Developments real estate financing is complex financing expertise, especially when it needs bespoke financing structuring and where the traditional method of financing does not work. Our expertise in real estate & corporate financing & legal structuring support any financing structure for the special need. We have helped numerous complex matters, where traditional finance cannot be competing with.’
Esteema Capital Partner provides most flexibility proposition to pay off the exiting development debt with ‘Maximum Leverage & Minimum Costing’ with two flexible option
(To sell remaining properties at an easy pace without any financial stress)
Hold the projects as buy to let
|Loan||Up to £100M||No Upper Limit|
|Loan to Value||Up to 70%||Up to 65%|
|Term||Up to 24 months||Up to 60 months|
|Interest Rate||from .55% PM||from 1.75% PA|
|Second Charge||Allow other equity loans to have the second charge||Allow other equity loans to have the second charge|
|Assets Types||Residential / Commercial / Mixed||Residential / Commercial / Mixed|
|Location||UK or International||UK & International borrower|
Key Factors Affecting the Development Exit Finance
✓ Personal & Business Profile
✓ Credit Profile
✓ Experience & Track Record
✓ SPV Structure & Location
✓ Residential / Commercial / Mixed
✓ Sales & Rental Demand
✓ Potential Covenant type/terms
✓ 100% Exit or Part Exit Finance
✓ Loan To Value & Term
✓ Potential Rental income, BTL as exit
✓ Potential sales income, sales as exit
Development-Exit Finance Guide
Development-Exit Finance Documents
- KYC: ID, Address proof, Personal & Professional History, and credit report for all the Borrower, Director, Partners & Major Shareholders
- SPV: Structure, Directors, Shareholders, UBO, and registered address
- Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
- Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
- Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
- Purpose: Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments
Development-Exit Finance FAQs
How Much Can I Borrow?
You can borrow from £100,000, with no maximum loan. We can usually arrange up to 75% loan to value on residential or mixed-use schemes and can even push to 80% for certain residential developments.
How Much Will It Cost?
Options for development exit finance come from our extensive panel of lenders, to support you the flexible finance options as per your plan.
Development exit finance is cheaper than development finance and as such, a new lender is generally happy to pass on the savings associated with a lower risk to you.
How Long Does it Take to Complete?
We can usually complete development exit finance applications in 7-14 days.
Do I Have to Make Monthly Payments?
We can offer funding with the interest serviced monthly, or rolled-up into the loan each month, leaving you no monthly payments to make.
What Happens When I Start Selling the Properties?
Unlike development finance, which sees all sale proceeds used to repay the loan amount, development exit lenders are happy to allow you to keep a proportion of the sales proceeds. This allows you to control your cash flow during the sales process and move forward with your next project.
Why Should I Look to Take Development Exit Finance?
There are four main reasons:
- Capital Release: You can generally release capital which will allow you to move forward with your next project. This allows you to keep your cash flow moving as fluidly as possible.
- Reducing the borrowing cost: You will generally be reducing your borrowing costs when taking out exit finance. Where sales could be slow, this can represent significant cost savings, protecting your all-important margin.
- Reducing the stress of forced sales meanes higher profit: Exit finance allows you to choose a much longer sales period than is generally offered by development finance lenders. This takes the pressure off you to look for quick sales and allows you to retain much more control in securing the best possible price for your stock.
- Flexible Cash Flow: As mentioned above, most lenders will allow you to keep a proportion of the sales proceeds from the first sale, meaning your cash flow is much easier to manage during the sales process.
When Should I Start Looking for Development Exit Finance?
You should start looking for Development Exit Finance at least a month before your requirement.
Does My Property Have to Be Signed Off by Building Control?
Not always, we can offer funding before practical completion sign off. Once the property is wind and watertight, you will be able to access the lowest rates in the market and start saving on interest costs. The lender can release the funds based on the value uplift on practical completion signoff.
Development-Exit Finance Costs
The following costs should be considered at the time of availing Development-Exit Finance:
- Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan
- Exit Fee: The fee is payable to the lender when repaying the loan
- Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion
- Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project
- Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee
We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :
- Initial Finance Terms: We usually provide Initial Finance Terms within 24-48 hours.
- Emergency Finance: We can complete the finance within 48 hours in case of any emergency or distressing situation.
- Standard Finance: We usually complete Standard Finance within 4-6 weeks.
Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting, valuation and legal.
Please refer to the Knowledge Bank section for more information
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