Enhanced senior debt facilities offering higher leverage than standard development finance, reducing equity requirements for experienced developers. Our Salford-based service connects you with specialist lenders who understand the Greater Manchester property market.
Stretched senior finance provides development funding at higher loan-to-cost and loan-to-GDV ratios than traditional senior development finance. This product is designed for experienced developers who want to maximize leverage and reduce the equity required for their projects.
By offering up to 90% of costs and 75% of GDV through a single facility, stretched senior eliminates the need for separate mezzanine funding in many cases. This simplifies the capital stack, reduces overall funding costs, and provides a single point of contact throughout the development process.
Our stretched senior solutions are available for residential and mixed-use developments from established developers with proven track records. Lenders assess projects on their merits, considering location, scheme design, developer experience, and market conditions.
Standard senior development finance typically offers 60-65% of costs and 60-65% of GDV. Stretched senior extends this to up to 90% of costs and 75% of GDV, significantly reducing the equity developers need to contribute. It essentially combines senior and mezzanine into one facility.
Stretched senior is typically available to developers who have completed at least 3-5 similar projects successfully. Lenders want to see a proven track record of delivering developments on time and budget. First-time developers would normally need to start with standard senior facilities.
Often the blended rate of stretched senior is comparable to or lower than combining separate senior and mezzanine facilities. You also save on duplicate arrangement fees, legal costs, and the complexity of managing two lender relationships. Total cost of capital is typically competitive.
Most stretched senior lenders require minimum profit margins of 20% on GDV to ensure sufficient buffer for the higher leverage. Projects with margins below this threshold may need to use standard senior finance with lower LTC/LTV ratios.