Acre Lane Capital launches development exit product

By Bridging Loan Directory 27th March 2025

Acre Lane Capital, a specialist lender in the UK development finance and bridging loan sector, has announced the launch of its development exit bridging loan, a newly tailored financial product designed to provide developers with greater flexibility, faster funding, and a smoother transition from construction to sales.

This latest financing solution is separate from Acre Lane Capital’s traditional bridging loan offerings and has been developed in response to rising demand from property developers and brokers who require short-term funding that better reflects the true market value of their assets.

Unlike many lenders who apply restrictive 180-day forced-sale valuations, Acre Lane Capital assesses projects based on Open Market Value (OMV), allowing developers to secure up to 75% LTV while benefiting from competitive interest rates starting at 8.5% per annum (0.7% per month).

The loan is structured without exit fees, ensuring developers retain a larger share of their profits rather than losing capital to unnecessary costs.

With funding available from £500,000 to £10 million, the product also includes the flexibility to lend against Net Sales Proceeds, giving developers greater control over cash flow while awaiting sales completion.

Indicative terms are issued within 24 hours, with completions possible in as little as two weeks, ensuring that developers and brokers can access capital efficiently when required.

The launch comes at a time when developers are increasingly seeking more flexible financing options to avoid forced sales or expensive extensions on their existing development finance.

Many developers are in the final stages of their projects but face delays in sales completion, requiring additional funding to maintain momentum.

This new product enables developers to refinance completed or nearly completed projects while awaiting sales, avoid the need for discounted transactions, and reinvest capital into future developments without being tied to the immediate sale of all units.

Acre Lane Capital’s development exit bridging loan has already demonstrated its effectiveness in real-world applications.

In a recent transaction, the lender successfully provided a £7 million loan in Buckinghamshire, structured at 75% LTV, to assist a developer in refinancing existing debt and consolidating financial obligations.

The borrower, who had multiple units still available for sale, required a solution that would prevent premature sales at discounted prices.

Acre Lane Capital structured the funding package to provide a higher initial drawdown, ensuring that the developer could address outstanding financial commitments while maintaining liquidity to progress sales.

By consolidating multiple funding arrangements into a single, structured loan, the borrower simplified their financial position, improved cash flow management, and retained the flexibility needed to maximise sale values.

In another case, Acre Lane Capital completed a £2.5 million development exit bridging loan for a residential scheme in South East London, ensuring a fast refinancing solution for the borrower.

The project consisted of four detached homes—three newly built properties and one extensively refurbished period house—within a highly sought-after location.

With two of the properties already tenanted and another under contract, the borrower required a short-term financing solution to market the remaining units effectively and achieve full market value.

Acre Lane Capital structured a 75% LTV loan, enabling the borrower to complete sales without financial pressure.

The entire transaction was executed in under three weeks from receiving the valuation, demonstrating the lender’s ability to complete deals quickly and provide tailored financial solutions that align with developers’ sales timelines.

Ian Wilson, CEO and Co-Founder at Acre Lane Capital, said:

“As developers navigate an evolving market, access to short-term capital without restrictive conditions is more critical than ever.

Our new product provides a solution that enables developers to complete projects without unnecessary disruption while allowing brokers to work with a lender that prioritises efficiency, speed, and a commercial approach to lending.

The development exit bridging loan ensures developers have the flexibility to unlock capital while maintaining control of their sales strategy, giving them the breathing space to achieve optimal returns.”