A specialist lender has provided £822,000 in developer exit finance for a residential scheme in Sydenham, South East London, allowing the borrower to release equity from unsold units whilst other projects remain underway.
Inspired Lending arranged the 12-month loan for an SPV borrower at 70% loan-to-value, with monthly interest charged at 0.89%. The facility is secured against the final two flats in a newly constructed eight-unit development, with the remaining six units already sold.
The financing structure enabled the developer to refinance existing borrowing and access capital tied up in the completed scheme rather than waiting for the final sales to complete. Both remaining units are currently listed for sale, providing a repayment route through their eventual disposal.
Capital deployment strategy
The transaction reflects a growing trend among developers seeking to manage cashflow across multiple projects. With substantial equity locked in near-complete schemes, developers face decisions about capital deployment timing versus project progression.
Gavin Diamond, chief executive of Inspired Lending, said: “Developers can reach the end of a successful scheme with most of the units sold and still have a sizeable amount of capital sitting in the final properties. At that point, the question is not necessarily whether those remaining units will sell, but whether it makes commercial sense to leave that money tied up while they do.”
He added that final sales can be time-consuming, and developers must consider subsequent projects during this period. The ability to release equity from completed schemes provides greater control over capital deployment rather than making progression dependent on individual property sale timing.
Market context
The financing arrangement comes as property developers navigate tighter lending conditions and manage project pipelines. Due diligence requirements have intensified across the sector, whilst credit assessment standards continue to evolve in response to economic conditions.
Developer exit finance serves as a bridge between completed schemes and subsequent capital redeployment, with the development having achieved its primary objective and the majority of units sold. The structure allows developers to maintain momentum across portfolios without waiting for final unit disposals to fund ongoing commitments.
