95-home development exit, Somerset
A first charge exit facility that repaid expensive development debt and released equity while the final phase of units completed sales.
A first charge exit facility that repaid expensive development debt and released equity while the final phase of units completed sales.
£16m
Exit facility
65%
Loan-to-value
12 months
Term
95
Homes in the scheme
A housebuilder completed a 95-home scheme in Somerset with roughly a third of the units still to sell. Their development facility was expiring, its extension pricing was punitive, and the equity locked in the unsold stock was needed for a land acquisition that wouldn't wait.
Selling the remaining homes in bulk to an investor would have crystallised a heavy discount. The developer needed time to sell at full market value — without the clock of expensive development debt running against them.
We provided a £16m first charge exit facility at 65% loan-to-value across the unsold units, repaying the development lender in full and releasing a meaningful slice of equity on day one.
The facility was structured with unit-by-unit release pricing: as each home sold, an agreed portion of proceeds repaid the loan and the remainder flowed to the developer, keeping their next acquisition funded throughout.
Freed from a forced-sale timetable, the developer sold every remaining home at or above asking price within ten months, repaying the facility ahead of term.
The equity released at drawdown secured the next site — meaning the two schemes effectively ran back-to-back instead of a year apart.
The exit loan bought us the one thing a developer never has enough of at the end of a scheme: time. We sold at full value and had the next site secured before the last unit completed.
Case study shown for illustrative purposes.
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