The situation
A developer has completed a nine-home scheme and sold three homes, with six still to complete or sell. The development facility is approaching its repayment date. The developer asks whether exit finance could create more time for an orderly sales process.
What makes this more involved?
Practical completion, warranties, title readiness and saleability are distinct checks. Headline gross development value does not equal cash available to repay debt. A replacement facility also has costs and may require specific amounts to be repaid as each unit sells.
How I would approach it
Verify what is complete
Review building sign-off, warranty position, outstanding works and utilities with the relevant professionals. Establish whether the remaining homes are mortgageable and legally ready for sale.
Rebuild the sales and debt schedule
Distinguish completed sales, exchanged contracts, reservations and unsold units. Reconcile current debt, costs and the proposed unit release terms.
Test a slower sales programme
Model the net proceeds and repayment timing if sales are delayed or prices reduce. Explore whether retained units could support a separately assessed rental exit.
What could change the plan?
Can all nine homes’ advertised values support the new loan?
The lender’s valuation and security assessment determine its position. Homes already sold and money already applied to debt must be treated correctly.
Is renting unsold units an automatic alternative?
No. Letting, planning, lender consent and long-term finance requirements must be considered separately.
What this would establish
Assess whether replacing the facility provides a realistic route to repayment after costs, rather than simply moving an unresolved exit into a later period.
Does completing the building guarantee exit finance?
No. The property, borrower, debt, legal position and repayment plan still require assessment.
Link to this answerEducational content reviewed 9 October 2026. Individual advice requires an assessment. Lender and policy criteria can change.
Further reading: MoneyHelper: buying a home. These references provide background information; they do not indicate acceptance of this example.