UK dev exit finance · sales-period cost modelling
Development exit finance, costed.
Enter the facility size, monthly rate, expected sales-period months and fees. Returns all-in cost, monthly interest, and a break-even check against a term refinance. Calculates in your browser — no call-back required.
How the numbers work
A UK development exit facility is a short-term loan taken out when a scheme reaches practical completion and the developer is selling the units (or refinancing to term). It replaces the senior development loan, which typically has higher rates and tighter covenants because its risk profile assumes construction risk — once that's gone, the cost of capital should come down.
What the calculator does
- Interest is calculated monthly (serviced model — most lenders allow either serviced or rolled; rolled is more expensive due to compounding, approximately equal to
loan × ((1+rate)^months - 1)instead ofloan × rate × months). - Arrangement fee defaults to 1.5% of facility, charged at drawdown.
- Exit fee is 0% by default — increasingly rare on dev exit product; some lenders still charge 0.5–1%.
- The refi comparison uses
facility × annual rate × (months / 12) + fixed costs.
Break-even intuition
At 0.70% pm and 9 months, a £3m facility pays ~£189k in interest plus £45k arrangement = £234k all-in. A 7.5% p.a. term refinance over the same 9 months would cost ~£169k + £45k fixed = £214k. So on 9 months, refinance wins by £20k. At 5 months or less, exit finance almost always wins — at 12+ months, refi usually does. The calculator does this sum live.
Related across the network
- The how it works page walks through the inputs and outputs in more detail.
- Our Dev Exit Finance Playbook covers when to switch from senior debt, covenants and lender selection.
- Anonymised case studies show real-shape numbers on six completed schemes.
FAQ
How is development exit finance cost calculated?
Dev exit cost is monthly interest × months of facility + arrangement fee + exit fee + legals. Our calculator computes all of these and shows the all-in figure. The key variables are the monthly rate (typically 0.55–0.85% pm on regulated cases, 0.59–1.10% on non-regulated) and the sales-period length — long sales periods compound the cost.
When does development exit finance beat refinancing?
When the sales-period is short enough that the monthly rate × months < arrangement + legals on a term refinance. Typical break-even is around 6–8 months. Under that, exit finance usually wins; over 12 months, a term refi is often cheaper.
What does "serviced" vs "rolled" mean in this context?
Serviced = interest paid monthly from sales proceeds as units complete. Rolled = interest accrues and is paid at exit (facility repayment). Most dev exit lenders offer both. Serviced is cheaper overall (no compounding) but requires ongoing cash flow.
What LTV do UK dev exit lenders typically offer?
Up to 75% LTV on the completed scheme's GDV is the mainstream range. A few lenders stretch to 80% on prime stock. Below 60% LTV, pricing comes down materially — the lender views the facility as low-risk.