A Lender will often assess the credibility or viability of a proposed Borrower Exit Strategy. When making a Bridging Loan or Development Loan, one of the Lender’s primary concerns is how they will be repaid at the end of the Loan Term. If the proposed exit is Re-Finance, let’s say on a BTL basis, then the lender will make an assessment of the availability of BTL funding for that particular asset. Similarly, if the exit is Sale, then the lender assesses the demand for the end product. The lenders Valuer may be asked to help with this assessment in each instance.
