Development exit finance and loans

Development exit finance and loans

CrowdProperty offers fast, expert, and certain development exit finance and loans for SME property developers nearing the end of a project that needs a little more time to wrap up.

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What is development exit finance and loans and how does it work?

Property development exit finance and loans are specialised financial solutions aimed at supporting property developers during the final phase of their projects.

These loans typically come into play when development is near completion, but the developer needs additional funding to finalise the project, or bridge the gap until sales are completed.

Exit finance helps developers manage cash flow, pay off construction debts, or invest in new projects while awaiting the sale or refinancing of their current development. It is a crucial tool for maintaining financial stability and ensuring the timely completion and transition of property development projects.

Types of properties that are eligible for developer exit loans and finance

Development exit loans and financing are available for various property types, including residential and mixed-use developments.

For example, a residential development might consist of multiple townhouses or apartments nearing completion. Mixed-use properties often combine residential and commercial elements, such as apartments above a cafe.

These loans help developers in refinancing existing debts, covering final construction costs, or funding new projects, leveraging the almost completed properties as collateral. This financing plays a pivotal role in property development investments, ensuring liquidity and project continuity.

Why trust crowdproperty for development exit finance and loans?

CrowdProperty's value proposition in development exit finance and loans lies in our expertise and tailored solutions. As property people ourselves, we offer a unique blend of simplicity and expert guidance, ensuring we thoroughly understand you, your project, and your team..

Our exit finance services are made for developers needing timely financial support at project completion stages, emphasising stability, investor confidence, and project success.

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Features and benefits of development exit finance and loans

  • Continuity and Liquidity
    Development Exit Finance and Loans offer builders and developers a strategic financial cushion at project completion.

    This financing solution allows for the repayment of existing development loans, providing more favourable terms and breathing space as sales progress.

    It can be an essential tool for managing cash flow efficiently, reducing interest costs, and securing the liquidity needed for future projects or to tackle unforeseen delays in sales.

  • Expert support and advice
    CrowdProperty offers dedicated expert support, providing guidance and advice throughout the financing process. This helps us ensure you are well-informed and supported at all times, making your projects more likely to succeed.

  • Fast and efficient processes
    With indicative answers provided within 72 hours of application, CrowdProperty emphasises speed and efficiency. This quick turnaround is essential for developers needing timely funding to seize opportunities.

  • Tailored financing solutions
    CrowdProperty prides itself on offering flexible financing options that are customised to meet the specific needs of each project. This adaptability allows for more targeted support and a better fit for various property development ventures.

  • Security and peace of mind
    All loans are secured by a first mortgage, providing a layer of financial safety and peace of mind. This security measure underscores CrowdProperty's commitment to mitigate risks.

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How it works and things to know

CrowdProperty streamlines the financing process for builders and project developers, offering a straightforward, efficient approach to securing funds for property development projects. Here's a concise overview of the CrowdProperty financing process:

Stage 1: Application and evaluation

Developers begin by submitting their project details online, where CrowdProperty's experts rigorously assess each project's feasibility and development potential. This assessment focuses on ensuring projects meet stringent standards and involves a comprehensive 57-step due diligence process, catering to a wide variety of development needs including development finance, bridging loans, and more.

Stage 2: Funding and investment

Once a project is approved, it's listed on the CrowdProperty platform for funding, allowing investors to pledge their support for projects that align with their financial goals. This phase emphasizes the opportunity for investors to engage with specialized, high-potential property development projects, offering attractive returns and the chance for portfolio diversification.

Stage 3: Project execution and completion

With funding in place, projects commence under the watchful eye of CrowdProperty, which provides continuous monitoring and updates. The focus here is on successful project execution and adherence to timelines, culminating in the return of capital plus interest to investors upon project completion. This streamlined process ensures a seamless journey from project inception to completion, with CrowdProperty providing support and oversight throughout.

How to apply

The application process with CrowdProperty is straightforward and user-friendly.

Developers submit their project details online, which are then evaluated by property experts for viability. The vetting includes thorough due diligence, ensuring the project meets stringent standards. Once approved, the project is listed on the CrowdProperty platform for funding.

The process emphasises simplicity, expert oversight, and a focus on quality investments.

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Frequently asked questions

  • How can I qualify for developer exit finance?

    To qualify for developer exit finance, you typically need to meet specific criteria, such as:

    • Owning a near-completion or recently completed property development project.
    • Demonstrating a clear exit strategy, like property sale or refinance plans.
    • Having a strong track record in property development, showing past project successes.
    • Presenting a financially viable project with sufficient equity and potential profitability.
    • Ensuring the project aligns with the lender’s loan-to-value and loan-to-cost ratios.
    • Passing rigorous due diligence checks by the lender, emphasising project feasibility and risk assessment.
  • What is the repayment period for developer exit finance with CrowdProperty?

    The repayment period for development exit finance with CrowdProperty typically ranges from 6 to 12 months. This varies according to the specific project.

    This flexibility allows developers to align the financing period with their project timelines and exit strategies, whether that involves selling the completed development or refinancing it onto long-term finance

  • Can I use a developer exit loan to refinance an existing loan?

    Yes, a developer exit loan can be used to refinance an existing loan as long as the project is near completion and there’s a clear exit plan. This financial solution helps developers manage cash flow and obligations at the completion stages of their property development projects.

  • What happens if I default on my developer exit finance loan?

    If you default on a developer exit finance loan, as a loan with first mortgage security we may take various steps, including taking ownership of the property or charging penalty interest. This action is a protective measure to recover the loan amount and interest. The lender may then implement an exit strategy, like selling the property, to recoup the funds.

    Defaulting can also impact your credit and future borrowing capabilities.

    However, CrowdProperty will work with you every step of the way to try and create solutions before taking these measures. We want your project to succeed and the development exit loan to be repaid successfully.

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