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The knowledge behind a clean exit

Guides written the way an underwriter thinks: what the ratios mean, what the valuer will do, which lenders fund what, and where deals actually go wrong between practical completion and redemption.

Everything here is about unregulated commercial lending on development schemes, written and reviewed by our editorial team and kept current as lender appetite moves. Definitions first, then the comparisons, processes and cost mechanics that decide whether an exit funds cleanly or expensively.

Definitions

Development exit finance explained: a working guide for developers

Development exit finance is the bridge that clears a development facility once a scheme is finished but still selling. This guide explains what it is by following a single illustrative sc...

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Definitions

GDV explained for developers: how gross development value is set

Every developer quotes a GDV, but the number that counts is the one a valuer signs. This guide walks through how gross development value is actually built, where developer estimates and v...

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Definitions

Net development value vs GDV: the difference and why lenders use NDV

Net development value and gross development value describe the same finished scheme, one before the costs of sale and one after. This guide sets the two figures side by side, shows what c...

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Definitions

Loan to GDV and LTV explained: the ratios that size your exit loan

Loan to GDV, loan to value, loan to cost and day-one LTV are four different ways of measuring the same loan, and mixing them up is how developers misread a quote. This guide sets all four...

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Comparisons

Wind and watertight vs practical completion: the difference for finance

Wind and watertight and practical completion are two different points in a build, and lenders treat them as two different risks. This guide draws the line between a sealed shell and a fin...

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Comparisons

Selling vs refinancing a completed development: running the numbers

At practical completion a developer holds finished units and a maturing development loan, and has to decide whether to sell the scheme or keep it and refinance. This guide runs that decis...

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Process

Practical completion checklist: what developers need signed off

Reaching practical completion is one thing; having the paperwork that proves it is another. This guide sets out the document checklist a developer works through at completion, names who s...

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Process

Development exit loan criteria: what lenders check before terms

An underwriter does not approve a development exit loan on a single number. The file is read in four passes: is the scheme finished, what is it worth, who is behind it, and how does the l...

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Process

Exit strategies for property developers: choosing before you build

The exit is the part of a scheme that pays you, yet most developers pick it last, once the units are built and the market decides for them. This guide treats the exit as an appraisal-stag...

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Process

Stalled development rescue finance: restarting a stuck scheme

A stalled development is rarely one problem. Money, contractor, planning and sales can each halt a build, and each failure points to a different fix. This guide works the way a rescue sho...

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Process

Funding your first development project: what lenders will and will not accept

Funding your first development project is less about finding a lender who says yes and more about building a case that answers the questions a track record would normally settle. This gui...

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Costs

Development exit finance interest rates: what drives your price

The interest rate on a development exit bridge is not one number, it is a band, and where your scheme lands inside it is decided by a short list of things you can influence. This guide ta...

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Lenders

Development exit finance lenders: who funds exits in the UK

Development exit finance is provided by a fairly small group of specialist banks, bridging lenders and development debt funds, each with its own view on scheme type, location, leverage an...

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Structures

Commercial development finance: funding non-residential schemes

Commercial development finance funds the construction of non-residential buildings, and it is underwritten on a different logic to housing. Pre-lets, tenant covenant and investment yield...

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Structures

Using an SPV for development finance: setup, lending and the exit

Most development schemes are borrowed in the name of a company set up for that scheme alone, not in a developer's own name. This guide follows a special purpose vehicle through the whole...

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Structures

No-deposit and 100 percent development finance: what is actually available

Almost every developer who searches for 100 percent development finance is really asking one question: can I build this scheme without putting my own cash in. The honest answer is sometim...

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Structures

Joint venture development funding: how JV deals are structured

A joint venture funder can put in the money a developer does not have, in return for a slice of the profit. This guide reads the deal from both sides of the table: what a JV funder provid...

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Structures

Mezzanine finance and the capital stack in property development

Most developers meet mezzanine finance as a single number, the loan that tops up the senior debt, but it is easier to use well once you can see the whole capital stack around it. This gui...

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