Your development has taken much longer than expected. Your lender has lost patience and is demanding their money back.
Some development lenders can make life difficult when they want out of a scheme, often asking for large fees to extend the facility for a few months, when both parties know it still won’t be long enough.
When you’re getting to end of a development, you’ve worked hard, you’re probably emotionally drained and the last thing you want is a lender eating into the equity you’ve created.
In the past, borrowers might have been forced to sell quickly and possibly at a loss, to satisfy the lender. However, now there are specialist products that allow you to repay your development lender, and access some of the equity you’ve created before you’ve sold a single unit.
Why choose PFG for your Developer Exit?
We know this market better than most, and even helped one of the first lenders in this space to create their developer exit product.
If you’ve achieved PC (Practical Completion) then the Developer Exit products come into play. We can start the process before PC is achieved; getting all of the paperwork, valuations and legal work completed, so you don’t have to pay your existing lender fees to extend the current loan.
These products also work well when developers don’t want to flood the market with sales. You can take a 2 or 3-year term, sell at any time, and borrow up to 75% of GDV, allowing you to take equity now and move onto your next site.
