Stretch Senior Development Finance

What is a Senior Stretch Loan?

It may sound terribly perplexing but a senior stretch loan is actually very simple as it is designed to give property developers all the finance they require for a specific project in one place.

A senior stretch loan is basically a senior loan with a mezzanine section included. Not only is it convenient and cost effective, it also means you don’t have to go through the trouble of entering complex inter-creditor agreements or double up on the paperwork. The senior loan is simply stretched to give you more financial muscle in order to do what you need to do.

Key features:

  • Funding up to 90% of costs plus roll up interest.
  • Loans are blended funding via 80% senior facility plus a 10% mezzanine facility.
  • Loans are typically available between £500k and £10 million, although larger loans can be considered.
  • Loan terms range on average between 12 and 30 months.

Lending Criteria:

Each application is assessed and negotiated on its individual merits. However, the following general criteria will apply:

The development:

  • Residential developments: houses, flats, new builds, conversions and mixed-use.
  • Projects located in England, Scotland and Wales in areas with strong demand.
  • Projects must have planning in place.
  • No restriction on the number of units.
  • Loans 100% secured on the development property.

The developer:

  • Experienced developers / house builders.
  • Must be a house builder with a demonstrable track record.

A senior stretch loan is quick, efficient and convenient because you are only dealing with one lender. They are also ideal for small businesses, particularly those that have substantial asset base but unpredictable cash flows or firms with a healthy cash flow but lower assets.

How to apply:

At BLG we seek to be competitive on pricing and consider every project on its individual merits. Contact us today on 0845 465 6500 to be put in touch with your local Regional Director who will be happy to discuss your property development funding requirements.

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