Refinance DSCR (Stabilised) is the Debt Service Coverage Ratio calculated once a property development has reached stabilisation, meaning rental income is consistent and void levels are normalised. It assesses whether net operating income can comfortably cover debt obligations on a proposed refinance facility, usually expressed as a ratio of income to debt service. A ratio above 1.20x is often required by lenders in the UK property development finance market. This measure is vital for exit planning, as it signals whether the development can support long-term financing or attract investment refinancing options.
This sits beneath Refinance Viability, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Refinance LTV (Red Book Value), as both are closely related measures used to assess similar aspects of performance or risk.
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