Senior Development Loan
The development finance you need
Senior development finance is the biggest aspect of any financial stack. It is usually lent by banks through development finance brokers. It can be approximately 70% – 90% of costs or 60% of GDV depending on circumstances. Often, developers may not have the full capital in hand required for their development projects. Even if a developer has enough equity, using debt can allow them to pursue more projects at the same time.
Contact Finspace, explore all aspects of property development loans, and choose the right thing for you and your project.
As the name suggests, stretched senior loans are senior loans that have had the leverage parameters stretched. These loans can also be used for residential and mixed use schemes but the loan gearing can be increased to 75% LTGDV or 95% LTC. Due to the increased leverage and risk these loan attract a higher interest rate than normal senior loans Read more.
Mezzanine Finance is an expensive type of finance that is used to top up normal Senior Debt loans where the client requires extra leverage. Although the pricing is more expensive, the mezzanine element of a loan is generally a lot smaller than the senior loan so the blended rate across both facilities evens out to a competitive level. Combined Senior & Mezzanine debt can increase leverage up to 75% LTGDV or 95% LTC, net Read more.
This is a partnership between lender and client and is only available to seasoned property developers. If a client does not want to contribute any funds to a scheme, JV funding can be agreed where the lender funds 100% of all project costs and the client is responsible for building the scheme out. There is generally a profit share between the two parties on a 50/50 basis Read more.