Finish and exit finance
Finish and exit finance is a single facility that pays for the works needed to complete a nearly finished scheme and then provides the sales runway to repay it. It steps in when the original development lender has stopped funding, usually over the final 10 to 20 percent of the build, and rolls the remaining construction cost and the exit period into one loan. It is the answer for a scheme that is close to the finish line but has run out of facility, run over budget, or lost its contractor. We arrange and place finish and exit finance with specialist development and bridging lenders who fund part-built schemes.
What is finish and exit finance?
Finish and exit finance is a two-stage loan that funds the remaining build works on a part-complete scheme and then repays itself over a defined sales period. The first stage is a works tranche that covers the cost of finishing the outstanding construction, drawn against a quantity surveyor's report on what is left to do. The second stage is the exit, an interest period that runs while the completed units are marketed and sold or refinanced. Both stages sit inside one facility with one lender, so the developer does not have to line up a separate construction loan and a separate exit bridge at the very point where the scheme is most exposed.
The product exists because a standard development exit bridge assumes the build is finished, and standard development finance assumes the build has barely started. A scheme stranded at 85 percent complete falls between the two. The original development finance has often reached the end of its term, exhausted its cost-to-complete headroom, or been pulled after a cost overrun, and a clean exit lender will not touch a site that is not yet wind and watertight. Finish and exit finance is built for exactly that gap: it accepts residual construction risk on the last stretch, prices for it, and underwrites the works and the sale together rather than treating them as two unrelated events.
A residential developer with a terrace, a small apartment block or a conversion that is weeks of work away from practical completion is the typical borrower. So is a developer whose main contractor has failed and left the site part-built, or whose costs have crept past the point where the incumbent development lender will release more money. In each case the value is largely built, the gross development value is real, and the only missing pieces are the last tranche of works cash and the time to sell. We package the scheme, take it to a funder whose appetite suits a part-complete build, and line up the exit before the facility draws.
- Funds the remaining build works plus the sales period in one facility
- Built for schemes stranded in the last 10 to 20 percent of construction
- Works tranche released against a quantity surveyor's cost-to-complete report
- Priced above a clean exit bridge because works risk remains on site
- Indicative loan to GDV (LTGDV) up to 70 percent of the finished value
- Repaid by unit sales or a refinance once the scheme is complete
Indicative terms
- Facility typeTwo-stage: a works tranche to finish, then a sales-period exit
- Loan to GDV (LTGDV)Indicatively up to 70% of gross development value, works costs included
- Works fundingRemaining build cost released in stages against a QS report and a fixed-price contract
- Term9 to 18 months, covering the finishing works and the sales window
- Interest rateIndicative 0.75 to 1.05 percent per month, illustrative and not an offer
- InterestUsually rolled up across both stages, sometimes part-serviced
- SecurityFirst legal charge over the part-complete development
- Exit strategySale of the finished units or a refinance onto a term loan
Illustrative bands. Each lender, scheme and borrower lands differently, and none of this is an offer of finance.
Built for
- Developers whose scheme is stranded in the final stretch of construction
- Borrowers whose development finance has run out of term or cost-to-complete headroom
- Developers whose main contractor has failed and left the site part-built
- Schemes that are not yet wind and watertight and cannot get a clean exit bridge
- Developers who need the works cash and the sales runway funded together
Discuss finish and exit finance
Indicative terms back with you by the next working day.
How a two-stage finish and exit facility is drawn
Survey what is left to build
A quantity surveyor inspects the site and reports the cost to complete, the works programme, and the value of what is already built, which sets the size of the works tranche and the finished gross development value.
Redeem and fund the finishing works
The facility repays the original development lender, then releases the works tranche in stages against monitored drawdowns and a fixed-price contract, so the last of the build is funded through to practical completion.
Reach completion and start the exit
As soon as the warranties and building control sign-off are through, the facility rolls into its exit stage, an interest period that runs while the finished units are marketed and either sold or prepared for refinance.
Repay on sales or refinance
Repayment comes as the finished units sell down, or from a remortgage onto investment or buy-to-let term debt, with that exit route agreed and documented before the facility drew.
What a finish and exit lender underwrites on the remaining works
A finish and exit lender underwrites the works and the exit as one question: can this scheme be finished on a fixed budget and sold for enough to repay the loan. The central document is the quantity surveyor's report, which states the cost to complete, confirms the works are genuinely a last stretch rather than a half-built shell, and values the finished scheme. Lenders want a fixed-price or firmly costed contract with a capable contractor, a contingency built into the works tranche to absorb overruns, and evidence that the site is at or close to wind and watertight, the point at which construction risk drops sharply. They will look harder at a scheme where the original contractor has walked off, because a replacement builder and a fresh programme carry their own risk. A credible exit counts for as much as the build: sensible sales pricing and an absorption rate the units can hit, or a clear route to refinance onto term debt. With works risk still live, the underwrite sits closer to development finance than to a bridge, so we bundle the QS report, the build contract and the sales plan and take the case to a funder whose appetite suits a part-complete scheme.
How much you can raise with works still to do
Borrowing on a finish and exit facility is sized on the finished gross development value, capped illustratively near 70 percent of GDV, with the remaining build cost funded inside that limit rather than on top of it. The lender first works out the finished value from the quantity surveyor's report, applies the LTGDV cap, then carves out the works tranche needed to complete the scheme, and what is left is available to redeem the original development finance and cover interest and fees. The leverage sits slightly below a clean exit bridge, which can reach 75 percent, because the lender is holding an unfinished asset until the works are done and carries the risk that the last stretch costs more than forecast. Where the scheme is closer to practical completion and genuinely wind and watertight, a lender may stretch nearer the top of the range. Before approaching lenders we model the finished value, the works tranche, the redemption figure and the all-in cost over the term. Each band here is indicative, shifts with the lender and the scheme, rests on principal sign-off, and is not an offer of finance.
Why finish and exit pricing sits above a clean exit bridge
Finish and exit pricing sits above a clean exit bridge because works risk is still on the site. A development exit bridge is secured against a finished asset with no construction left, so it is the cheapest short-term development money; a finish and exit facility is holding an unfinished scheme and funding the last of the build, so it carries a margin for that residual risk. Expect an indicative monthly interest rate of 0.75 to 1.05 percent, illustrative and not an offer, above a clean exit bridge's indicative 0.65 to 0.95 percent per month but well below construction-priced development finance. On top of the rate sit a lender arrangement fee, usually around 1 to 2 percent, a quantity surveyor's monitoring fee for the staged works drawdowns, a valuation, both sides' legal costs, and on some deals an exit fee. Interest accrues monthly, so a tight works programme and a realistic sales window do far more to hold down the total cost than the headline rate does. Our broker fee is disclosed in writing, we price the full cost stack over the expected term, and we never claim an exclusive tie to a single lender. These bands are indicative and not an offer of finance.
How finish and exit finance compares with a standard exit bridge
Finish and exit finance and standard development exit finance solve the same underlying problem at two different moments. Standard development exit finance, arranged as a bridge, assumes the scheme has reached practical completion: the build risk has gone, the asset is finished, and the loan simply repays the development lender and buys a sales period at the lowest short-term rate. Finish and exit finance is for the stage before that, when the units are still weeks of work away and no clean exit lender will lend against a site that is not yet finished. It funds the outstanding works, then rolls into the same sales-period runway, so the developer avoids arranging a separate completion loan and a separate exit bridge back to back. The moment a scheme is genuinely wind and watertight and finished, a straight development exit bridge is cheaper, which is why we assess exactly where a scheme sits and only arrange finish and exit finance where real works remain. Once the build is done, the natural next step is often a refinance onto longer sales-period funding or an investment term loan.
Finish and exit finance: common questions
Why does my development lender stop funding a scheme near the end?
Development finance is sized and termed for the original build programme, so a scheme that runs over budget or behind schedule can exhaust its cost-to-complete headroom or reach its term date before the last works are done. A cost overrun on the final stretch, or a contractor failure, can push the numbers past what the incumbent lender will release. At that point the development lender wants to be repaid rather than advance more, which is the gap finish and exit finance fills. It redeems the original facility and funds the remaining works in one loan.
How is finish and exit finance different from standard development exit finance?
Standard development exit finance is a bridge against a finished scheme, so it assumes the build is complete and simply funds the sales period at the lowest short-term rate. Finish and exit finance is for the stage before completion, when construction works still remain and no clean exit lender will lend. It adds a works tranche to fund the finishing build, then rolls into the same sales runway. Because it carries residual works risk, it is priced above a clean exit bridge.
Does my scheme need to be wind and watertight to qualify?
Wind and watertight is the threshold most finish and exit lenders underwrite around, because construction risk drops sharply once the structure and roof keep the weather out. A scheme at or beyond that point, with mainly internal fit-out and finishing works left, is the most fundable. Lenders will still consider a site short of wind and watertight, but they will lend more cautiously and price for the extra risk. A quantity surveyor's report confirms where the scheme genuinely sits.
How does a lender fund the remaining build costs?
The lender sizes a works tranche from the quantity surveyor's cost-to-complete report and releases it in stages, not as a single lump. Each drawdown is monitored against the works actually done and a fixed-price or firmly costed build contract, with a contingency built in to absorb overruns. This staged, monitored approach is closer to development finance than to a simple bridge, which is one reason the pricing sits above a standard exit facility.
What if my main contractor has failed and left the site part-built?
A contractor failure is one of the most common reasons a scheme stalls in its final stretch, and finish and exit lenders are used to it. The lender will want a capable replacement builder, a fresh fixed-price contract for the remaining works, and a quantity surveyor's assessment of what has been built and what is left. A part-built site under a new contractor carries more risk than a scheme running to its original programme, so expect the underwriting and pricing to reflect that. We help package the replacement build team alongside the case.
What interest rate should I expect on finish and exit finance?
Pricing is indicatively 0.75 to 1.05 percent per month, which is illustrative and not an offer of finance. That sits above a clean development exit bridge, indicatively 0.65 to 0.95 percent per month, because the lender is funding unfinished works and carrying construction risk on the last stretch. It still sits below construction-priced development finance. The exact rate turns on how close the scheme is to completion, the strength of the exit, and the lender, so we price the full cost stack across the term rather than the monthly margin alone.
How much of the finished value can I borrow while works remain?
Finish and exit finance is sized on the finished gross development value, capped illustratively near 70 percent of GDV, with the remaining build cost funded inside that limit. The leverage sits slightly below a clean exit bridge, which can reach 75 percent, because the lender holds an unfinished asset until the works complete. A scheme that is genuinely wind and watertight and close to practical completion can stretch nearer the top of the range. Those bands are illustrative, hinge on principal sign-off, and are not an offer of finance.
Discuss finish and exit finance
Outline the scheme and its redemption date. By the end of the next working day you will know whether it funds and at what indicative terms.