£3.67m Development Exit Facility Supports Completion of Six Homes 

Momenta Finance has provided a £3.67 million development exit facility for a six-home residential scheme in south-west England.

The facility refinances existing borrowing and funds the remaining construction costs for Phase 2. By incorporating additional properties as security, Momenta Finance structured a solution that enabled the developer to progress towards completion and the planned sale of all six homes.

The Deal at a Glance 

Facility: £3.67 million 

Product: Development Exit Bridging Finance 

Term: 15 months 

LTV: 69.15% gross LTV, post-uplift against combined value 

Purpose: Refinance existing borrowing and fund remaining construction costs 

Exit Strategy: Sale of the six completed houses 

Introducer: Emeka Udechuku, Chief Futures Officer, Praevidus Commercial Finance (Synergy) 

Momenta Finance: Andrew Gagan, Sales Director – Real Estate 

The Borrower 

The borrower is a property development company delivering a six-home residential scheme in south-west England. 

The development is being delivered in two phases. Phase 1, comprising three houses, is complete, with two units already being marketed. Phase 2, comprising the remaining three houses, is under construction under the existing planning consent. 

The developer’s strategy is to complete the scheme and exit through the sale of all six homes. 

The Opportunity 

With an existing facility of approximately £2.6 million, the developer required funding to refinance the current bridging loan and cover the remaining construction costs for Phase 2. 

The transaction needed to address both requirements within a single funding structure, allowing the developer to progress the outstanding works while preparing the completed properties for sale. 

The exit strategy was based on the sale of all six houses. Given the relatively thin local sales market, the planned exit was supported by contractual sales milestones to help manage the sales process. 

The Funding Solution 

Momenta Finance provided a £3.67 million development exit facility over 15 months. 

The facility was structured to refinance the existing bridging loan and provide funding for the remaining construction costs associated with Phase 2. As the development could not be supported on a standalone basis, Momenta Finance incorporated additional properties as security, enabling a structure that addressed the wider funding requirement. This approach demonstrated the flexibility to consider security beyond the development itself, which not all lenders can accommodate. 

At 69.15% gross LTV against the combined value following the uplift, the facility brought the refinance and remaining construction funding together, providing a route for the developer to progress the scheme towards completion and sale. 

The Impact 

The facility enables the developer to refinance the existing borrowing while funding the remaining construction work on the three houses in Phase 2. 

With Phase 1 complete and two homes already being marketed, the funding supports the next stage of the development and the strategy to sell all six properties. 

The 15-month term provides a defined period in which to progress construction and execute the planned sales exit, supported by the agreed sales milestones. 

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Why Momenta Finance? 

This transaction required a funding structure that could address an existing loan refinance alongside the remaining construction costs of an active residential development. 

Momenta Finance took a combined approach to the requirement, providing a development exit facility to support both elements while recognising the developer’s phased construction and sales strategy. 

The deal was introduced by Emeka Udechuku of Praevidus Commercial Finance (Synergy) and supported by Andrew Gagan, Sales Director – Real Estate at Momenta Finance. 

Emeka Udechuku, Chief Futures Officer at Praevidus Commercial Finance said 

“Andy was extremely responsive and adapted to significant challenges brought about by a late dated valuation shortfall as well as issues with the title and access. He kept the client and credit on the same page sometimes late into the night. Difficult case with good fundamentals, Andy and Steve’s demonstrated their strong sector knowledge and operational insights as well as a good working relationship with key internal and external stakeholders to get the client’s needs met.” 

Get in Touch 

Have a client looking to refinance an existing development facility, fund remaining construction costs or plan their next property development exit? 

Our real estate team takes a commercial approach to property finance, considering the wider transaction, development progress and proposed exit strategy.