Quick answer: Development facilities have contractual maturity dates. If construction or settlements run late, the borrower may need a formal extension, pay extension/default fees or refinance. Start extension discussions well before maturity and update the QS budget, valuation, programme and remaining interest reserve.
Questions borrowers, investors and developers commonly ask
- The builder is six months late and my facility expires next month — what do I do?
- Will the lender automatically extend because the project is nearly complete?
Extension is a new credit decision
The lender can reassess cost-to-complete, builder, presales, valuation, sponsor liquidity and exit before granting more time.
Delay burns both time and money
Extra interest, QS reports, builder preliminaries, rent/holding costs and buyer sunset risk can consume contingency quickly.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
The builder is six months late and my facility expires next month — what do I do?
Development facilities have contractual maturity dates. If construction or settlements run late, the borrower may need a formal extension, pay extension/default fees or refinance. Start extension discussions well before maturity and update the QS budget, valuation, programme and remaining interest reserve.
Will the lender automatically extend because the project is nearly complete?
The lender can reassess cost-to-complete, builder, presales, valuation, sponsor liquidity and exit before granting more time.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
