Shawbrook Bank has completed a £2.98 million development exit loan for a nine-unit residential scheme in Wimbledon, with the transaction finalised in two and a half weeks from initial application.
The development consisted of nine units comprising three flats and two mews houses. Four units had already sold prior to the refinancing arrangement, with the lender agreeing to a 75% loan-to-gross-development-value (LTGDV) ratio based on the scheme’s sales progress.
Equity release for future projects
The refinancing structure allowed the developer to access lower-cost finance whilst releasing equity for deployment on subsequent projects. The arrangement also provided flexibility on the timing of the remaining unit sales.
GDV Finance, a broker specialising in development finance, introduced the transaction. Harry Eddery, managing partner and co-founder at GDV Finance, said: “Shawbrook and their professional partners worked closely with us throughout, enabling a smooth completion within just a couple of weeks.”
Alex Mills, relationship director at Shawbrook, commented: “This is a good example of how we can move quickly on straightforward deals. By maintaining close communication with GDV Finance throughout, we were able to keep the process moving and deliver a smooth exit for the client.”
Development finance market context
The transaction comes as UK inflation continues to moderate, potentially creating more favourable conditions for property developers seeking refinancing options. Exit loans typically provide developers with bridge financing between project completion and final unit sales, allowing them to recycle capital more efficiently.
The speed of completion on this transaction reflects lender appetite for partially de-risked development schemes where sales momentum has already been established. The 75% LTGDV ratio sits within typical market parameters for schemes with proven sales traction.
