Development Exit – 16-Unit Residential Scheme – Maidstone

Key Points

• Asset: 16-unit residential development (including several small bedsits)
• Facility Type: Development exit refinance
• Loan Amount: £1.2 million
• Completion Time: 4 weeks from start to finish

About The Deal

The client’s development loan had reached the end of its term. Their existing lender demanded a 3% extension fee plus two months’ interest upfront, making it financially unattractive to extend. The client sought a quick refinance to exit the facility and release capital.

The case presented two main challenges.

Firstly, due to the small unit sizes of the bedsits, not all lenders were comfortable providing finance against the scheme. Secondly, during legal due diligence, it was uncovered that some pre-commencement planning conditions had not been discharged, raising compliance concerns with the incoming lender.

Outcome

Through targeted lender selection, clear communication, and proactive legal management, we secured a £1.2m development exit facility and completed the refinance within 4 weeks, avoiding all extension penalties.

Highlights

• Secured lender comfort despite non-standard unit sizes
• Resolved outstanding planning discharge issues
• Avoided 3% extension fee and two months’ interest
• Delivered full refinance in 4 weeks