£7M Development Exit at 75% LTV, Buckinghamshire
Our team recently completed a £7 million development exit bridge loan in Buckinghamshire, structured at 75% Loan-to-Value (LTV). This deal underscores our ability to fund high-quality developments with a clear exit strategy and strong market liquidity.
The Challenge
The developer required a short-term financing solution to transition from development completion to unit sales. The challenge was securing funding at an optimal LTV while ensuring a cost-effective and seamless exit. Many lenders hesitate to offer 75% LTV on development exits, particularly without proven market demand.
Our Solution
We assessed the deal against key criteria that justify a higher LTV, ensuring that both the borrower and our funding partners had a well-structured, risk-managed facility. Our decision was based on:
✅ Definitive Exit Strategy: The developer planned to exit through direct unit sales rather than refinancing, reducing risk.
✅ New Build Development: The scheme was a high-quality new-build residential development, an attractive asset in a strong market.
✅ Demonstrated Market Liquidity: Several units had already sold at agreed market values, proving demand and supporting the loan’s valuation.
✅ Higher Day 1 Drawdown: Structured to allow the borrower to clear outstanding credit obligations, improving financial stability and ensuring smooth execution of the exit strategy.
This structure provided the borrower with the breathing room needed to resolve financial concerns while maintaining strong lender confidence in the exit strategy.
The Outcome
🔹£7M facility secured at a competitive rate.
🔹 75% LTV achieved, ensuring optimal leverage for the borrower.
🔹 Smooth transition from development to sales, enabling the developer to focus on completing transactions.
🔹 Demonstrated ability to structure high-LTV exits where the fundamentals justify it.
Why This Matters
This deal highlights our ability to fund well-structured development exits at market-leading LTV levels, provided the fundamentals align. It also emphasises the importance of a clear exit strategy, strong market liquidity, and high-quality assets.
If you’re a developer seeking tailored short-term finance solutions, get in touch with our team today.