Case Study: Developer Exit Finance for a 20-Unit Residential Scheme

At Positive Commercial Finance, we specialise in delivering fast, flexible bridging and development finance solutions that help property developers maximise returns and move on to their next project with confidence. We recently facilitated a standout Developer Exit Finance facility for an experienced residential developer in the North West of England.

Client Background

Our client is a well-established developer with a proven track record of delivering high-quality family homes across the North West. They had successfully completed a 20-unit scheme of detached and semi-detached three- and four-bedroom houses. The development was originally funded through a standard development finance facility that had performed well during the build phase. However, with the project now fully complete and signed off, the client was ready to exit the original lender and focus on new opportunities.

The Challenge

Sixteen of the twenty homes had sold quickly, providing strong cash flow. However, the final four properties remained unsold in a competitive market where buyers were taking longer to commit. The existing development lender required full repayment on completion, and extending the facility would have come at a significantly higher cost. The developer needed a short-term exit solution that would:

• Release the remaining equity without pressure to discount the four homes
• Provide a lower-cost facility than the original development finance
• Allow sufficient time to achieve full market-value sales
• Complete quickly to avoid any penalties or cash-flow disruption

Our Solution

We immediately recognised this as a classic Developer Exit Finance opportunity. Working from our extensive panel of over 200 specialist lenders, we sourced a private funder who specialises in sales-period bridging for completed residential schemes. Our team handled the entire process end-to-end — from initial fact-find and valuation coordination through to legal and drawdown — ensuring a seamless transition.Deal Structure

• Loan amount: £1,000,000 
• LTV: 80% (based on open-market valuation of the four completed units) 
• Interest rate: 0.89% per calendar month (interest rolled or serviced as preferred) 
• Arrangement fee: 2% (no upfront broker fees charged to the client) 
• Term: 12 months with extension options 
• Exit fees: None 
• Drawdown: Completed within 18 working days of instruction

The high 80% LTV and attractive rate were only possible because of the strength of the completed scheme, our long-standing relationships with the funder, and the detailed supporting information we prepared upfront.

Results and Benefits

The facility allowed the client to fully redeem the original development lender on time, avoiding any extension fees or relationship strain. With the lower interest rate and breathing space provided by the exit finance, all four remaining homes were subsequently sold at full asking prices within nine months — preserving the developer’s margins and delivering an excellent overall profit on the scheme.The client commented: 

Why This Matters

Developer Exit Finance continues to be one of the most effective tools for residential developers who have built out successfully but need time to realise full value on the final units. At Positive Commercial Finance we have now arranged multiple eight-figure exit facilities this year alone, consistently achieving LTVs of 75–85% and rates starting from as low as 0.75% pcm.If you have a completed (or near-completed) development and are looking for an efficient exit from your current facility, we would be delighted to review your scheme and provide a no-obligation indicative offer within hours.Contact the Positive Commercial Finance team today via our website: www.positivecommercialfinance.co.uk or call us on 01204 238 000. Positive Commercial Finance – Award-winning commercial finance brokerage. Over £1 billion funded.