Development Exit Finance Secured Using Residential Equity

The Client 

Our client was an experienced developer who had completed a scheme of multiple flats and houses. The build was finished and the units were ready for sale, but the sales period was taking longer than expected due to buyer timelines and market conditions. 

The developer also owned a main residence valued at over £5 million, with substantial equity and a modest mortgage. 
 
The Challenge 

The development finance was nearing expiry, meaning the client risked default rates and penalty charges. While the units were expected to sell, rushing the process would likely mean accepting reduced prices. 
Traditional lenders could not assist because the properties remained unsold, income alone would not support a refinance, and a standard term mortgage was not suitable at this stage. 

The client needed time, not pressure. 
 
The Funding Strategy 

We arranged a £3.8 million development exit facility at 0.55% per month. 
To secure this competitive rate, we structured a second charge over the client’s main residence. The additional security reduced lender risk and materially improved pricing. 
This allowed the client to leverage existing equity rather than move onto expensive default or bridging terms. 
 
The Outcome 

The facility provided around 12 months to sell the units properly at market value, avoiding: 
• Default interest 
• Discounted offers 
• A distressed sale 

By structuring security across multiple assets, we turned a potential pressure point into a controlled exit strategy, preserving flexibility and protecting profit margins.