Development Exit Bridging Loans, What Every London Property Developer Should Know About
If you’re a property developer in London, coming to the end of a build or refurbishment, you’re likely familiar with the pressure of repaying development finance quickly — even if you’re still waiting on property sales or long-term refinancing.
A development exit bridging loan could be the key to maximising profits and keeping your project on track.
At Sunrise Commercial Finance, we help developers across London and the UK access fast, flexible funding to support every stage of their property journey. Development exit finance is one of the most powerful, under-used tools in the property finance world – especially for developers facing time-sensitive sales or high-interest development loans.
What Exactly Is a Development Exit Bridging Loan?
A development exit loan is a short-term finance solution for developers who have completed or nearly completed a residential or commercial development. Unlike your initial development finance (which typically has higher rates and rigid terms), this product is designed to:
- Replace your existing, often expensive development finance.
- Give you extra time to market and sell units without slashing asking prices.
- Lower your monthly finance costs and improve your profit margins.
- Unlock capital from a completed project to use elsewhere.
It’s essentially a way to bridge the gap between the completion of your build and your final property sales or refinance.
Key Benefits for London Property Developers
London’s property market is dynamic, fast-moving – and highly competitive. A delay in sales or refinance can wipe out thousands in profit. Here’s how development exit bridging loans can help:
1. Lower Interest Rates – More Breathing Room
With rates from 0.70% per month, development exit loans are far more affordable than traditional development finance, where rates often exceed 1% per month.
2. Borrow Up to 75% LTGDV or LTV
Lenders work off the Open Market Value, not just costs, allowing you to leverage your development’s full value and release more equity.
3. Transparent Fees – No Nasty Surprises
No exit fees means you retain more of your profit. No last-minute costs, no penalty charges.
4. Large Loan Sizes Across England and Wales
We secure loans from £500,000 up to £10 million, with flexible terms up to 24 months – suitable for everything from boutique developments to large block conversions.
5. Net Sales Proceeds Funding
This option gives you access to funds based on the net proceeds from expected property sales, allowing you to fund the next project before completing sales on the current one.
Who Should Consider a Development Exit Loan?
Whether you’re an experienced developer or just completed your first refurbishment, exit finance can be a smart choice if:
- You need more time to sell without dropping prices.
- Your existing development loan is expiring.
- You want to reduce your cost of borrowing.
- You’re stuck in the refinancing process.
- You want to unlock capital from your completed development.
Real-World Scenarios Where Exit Finance Makes a Difference
Scenario 1 – Unsold Units Post-Completion
A developer in South West London completes a block of 12 flats but only sells 6. With their development finance about to expire and buyers taking time to commit, they secure a development exit loan to reduce monthly costs and buy another 6–9 months to sell at asking price. Result? £140,000 saved in finance costs and full asking price achieved.
Scenario 2 – Bridging the Gap to Refinance
A landlord in North London converts a commercial building into 4 high-end HMOs. They apply for a commercial BTL mortgage, but valuation and approval take longer than expected. Exit finance covers the gap, preventing default and credit damage while the refinance completes.
How Long Does It Take to Get a Development Exit Loan?
Typically, funds can be released within 5 to 21 days, depending on valuation and legal checks. At Sunrise Commercial Finance, we work with lenders who specialise in fast turnaround for time-sensitive projects.
Why London Developers Use Sunrise Commercial Finance
At Sunrise Commercial, we act as your finance partner – not just a broker. We know the London property market, understand developer timelines, and have built close relationships with specialist lenders across the UK.
With us, you get:
- Expert advice from a real person, not just a call centre.
- A tailored strategy to increase your profits, not just secure any loan.
- End-to-end support, including liaising with solicitors and valuers.
Common Questions About Development Exit Bridging Loans
Is it only for completed developments?
Not necessarily. You can apply when the build is nearly complete (i.e., sign-off pending or 95% complete), as long as a clear exit strategy is in place.
Can I use the loan to fund my next project?
Yes. Many developers use equity released via an exit loan to fund deposits or professional fees on the next project.
Do I need perfect credit?
Not always. Lenders focus more on the project, security, and exit strategy than credit score alone.
What kind of properties are eligible?
Residential units and mixed-use schemes.
Ready to Explore Your Exit Finance Options?
Don’t let tight lender deadlines or a slow sales process cost you your profit. Whether you’re wrapping up your first conversion or finalising a major London development, we can help you plan the smartest financial exit.
✅ Call Sunrise Commercial Finance today or visit
👉 www.sunrisecommercial.co.uk
for free advice or a no-obligation quote.
For more information contact us for a fees free chat.
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📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
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