Stretched Senior Debt refers to a first charge development facility which provides a higher Loan to Cost or Loan to Value percentage than Senior debt can allow. Property developers find this higher leverage lending helpful as it means they do not need to provide such a large percentage of funding themselves. This not only helps with cash flow, but also allows the opportunity to build more than one development project at a time.
A senior stretch loan is quick, efficient and convenient, giving you access to more finance.
Up to 75% of the Gross Development Value, or
Up to 90% of Total Project Costs
Interest Rates from 6% per annum.
Up to 36 months.
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Getting the best of property financing has never been simpler.
Stretched facilities are predominantly used for residential developments, however there are a number of lenders who will also consider mixed-use schemes, commercial schemes, student accommodation, nursing homes, hotels, industrial schemes, etc.
What is the Stretched Senior lending criteria?
Stretched senior is typically only available to experienced, professional developers, due to developers cash contribution being small. Developer equity contribution of a minimum of 10% of the total property development cost or able to provide alternative security. Part of the entirety of the 10% may be provided via third party equity. Please get in touch to discuss the details of how this can work for you.
The Merryoaks Property Finance team have a long and successful background in finding and providing creative financial solutions for property investors and developers throughout the UK. Our aim is to help you fund your next investment or development project and be part of your on-going growth to bigger and better deals.