Development Exit Loan

Development Exit Loan

The Issue

A developer based in Essex approached Alternative Bridging for a swift solution to exit their existing development facility, which was approaching its expiry. The facility had funded the construction of six barn-style residential properties, all completed to a high standard. With two sales already in progress, time was of the essence to avoid falling into default with their current lender.

There were a couple of obstacles that added pressure to the transaction:

• The need for updated Ordnance Survey mapping to be processed by the Land Registry
• Complex legal structuring that required strong collaboration between both parties’ solicitors
• The need to readdress a valuation report originally prepared for another lender who was unable to grant the funding.

The Remedy

Alternative Bridging provided a £2,950,000 Development Exit loan, allowing the client to refinance out of their expiring facility. Our team worked closely with all stakeholders to ensure the legal hurdles were navigated efficiently and the valuation was updated and accepted. By stepping in quickly, it gave the client vital breathing space to focus on completing the sale of the units without additional financial stress.

This collaborative approach between legal teams, valuers, and the team at Alternative ensured that issues were addressed in real time, and the borrower was fully supported throughout.

The Outcome

The deal was completed within just 8 weeks despite the obstacles involved. With the refinance complete, the borrower avoided default on their existing loan, preserved their reputation, and gained valuable time to finalise the sale of their completed properties.

This case is a strong example of how a flexible and responsive development exit loan can offer a critical lifeline at the end of a project, especially where timing is crucial and traditional lenders can’t meet the demands of the situation.