Developer Exit Finance for a Large New-Build Home

Positive Commercial Finance specialises in arranging Developer Exit Finance for developers who need additional time to complete or sell a project after their original development loan is due to expire. This case study shows how we secured a flexible funding solution for a large new-build home in the Midlands, overcoming several unexpected issues to ensure the project stayed on track.

The Situation

Our client was an experienced property developer nearing completion of a large new-build house.

The development finance facility was approaching its expiry date, and the existing lender required full repayment because of its own funding constraints.

The project was almost complete. However, the final completion certificates were unlikely to be available before the loan expired.

Without additional funding, the client faced unnecessary pressure to repay the existing lender before the property was fully signed off.

More Than One Challenge

As we progressed the application, two further issues emerged.

First, a number of County Court Judgments (CCJs) appeared against an address where the client had previously stayed temporarily. The client was unaware of the judgments and did not believe they related to them.

Secondly, the legal review identified an ambiguous covenant affecting the property’s title. Many lenders would have declined the application at this stage because of the additional legal complexity.

These issues meant the client needed a lender willing to assess the full circumstances rather than apply standard lending criteria.

Our Approach

Positive Commercial Finance sourced a specialist Developer Exit Finance lender with experience of complex development cases.

The lender recognised that the property was substantially complete and agreed to retain a small proportion of the loan until the final completion certificates had been issued.

Rather than rejecting the application because of the apparent CCJs or the title issue, the lender investigated both matters in detail.

By taking a practical and commercial approach, they were satisfied that the risks could be managed and approved the facility.

As a result, the loan completed on time and the existing development finance was repaid before the original deadline.

Deal Structure

• Loan to Value (LTV): 70%
• Interest Rate: 0.7% per month
• Arrangement Fee: 2%
• Exit Fee: None
• Term: 12 months

The Result

The client successfully refinanced onto a Developer Exit Finance facility without delaying the project or rushing to complete the remaining works.

The new funding provided valuable breathing space to obtain the outstanding completion certificates while resolving legal and credit-related queries in a controlled manner.

This case study demonstrates how Developer Exit Finance can provide a practical solution for experienced developers facing expiring development loans, particularly where projects are close to completion but unexpected issues arise.