Stretch Senior Loans

Our Stretch senior development finance loans offer a diverse range of funding solutions designed to support and expand your development efforts. We provide financial backing covering up to 85% of your project costs, and this can increase to 90% when including rolled-up interest. Additionally, we offer financing up to 65% of the gross development value, with the potential to extend to 70% when accounting for rolled-up interest.

We offer senior loans ranging from £1,000,000 to £15,000,000, providing the flexibility needed to match your project’s scale and requirements. Our financing solutions cater to projects with timelines of 12 to 24 months, accommodating both large-scale developments and smaller ventures. Whether you’re embarking on a major development or a more modest project, our stretch senior loans are designed to provide the robust financial support necessary to advance your goals and bring your vision to life.

12-24 months

Build duration between 12 and 24 months


​Up to 90% funding


Loans from £1,000,000 to £15,000,000

What Exactly Is Stretch Senior Debt?

At first glance, the concept of a stretch finance loan, sometimes referred to as an over advance loan, might seem intricate, but its essence is quite straightforward. These specialised financing options are crafted by experts in the realm of property development finance, such as BLG, to provide property developers with access to a higher level of financial support.

Stretch senior debt distinguishes itself by typically offering a more substantial loan-to-cost or loan-to-value ratio than what is conventionally available from mainstream lenders and banks. For instance, while traditional banks might extend loans covering up to 60% of project costs, our stretch senior loans are accessible for up to 85% of project costs, with the potential to reach 90% when considering rolled-up interest. Another perspective on stretch senior development finance is that it can encompass up to 65% of the Gross Development Value, potentially increasing to 70% when rolled-up interest is factored in.

In practical terms, this means that while conventional banks and high street lenders may expect property developers to inject cash equivalent to 40% of project costs into the venture, we offer the flexibility for developers to contribute as little as 13% of their project expenses when incorporating rolled-up interest. This approach empowers developers to leverage their resources more efficiently and optimize their capital allocation for their development projects.

​What Are The Key Features Of Stretched Senior Debt?

One of the primary features of Stretched Senior Debt is the higher loan-to-value (LTV) ratio it offers. While traditional senior debt loans typically have an LTV ratio of around 60% to 65%, Stretched Senior Debt can provide financing up to 70% LTV or even higher. This increased leverage allows developers to secure more funds for their projects and reduces the amount of equity they need to contribute.

What Is Senior Development Finance Used For?

Our stretch senior debt can be used for a wide range of residential developments, including houses, apartments, new builds, and conversions. Our development finance solutions extend to mixed-use schemes, accommodating projects in both urban and rural locations across the UK. We aim to support developments in areas with strong demand, enabling you to capitalise on market opportunities. Whether you’re planning a small-scale project or a large-scale endeavour. There are no restrictions on the number of units you can develop. Our stretch senior finance is tailored to meet the diverse needs of residential developers, providing the necessary funding to bring your projects to fruition.

What Are The Stretched Senior Debt Lending Criteria?

Development Demand: One crucial criterion is the location of the development project. Lenders look for projects in areas with clear sales demand, ensuring that there is a market for the developed properties. Factors such as population growth, economic indicators, market trends, and demand for real estate in the area are assessed to determine the viability of the project.

Loan-to-Cost Ratio: Lenders consider the loan-to-cost (LTC) ratio when evaluating Stretched Senior Debt applications. The LTC ratio represents the loan amount as a percentage of the total project cost, including land acquisition, construction costs, and other related expenses. Lenders typically have their own predetermined limits for the LTC ratio, and the proposed loan amount must fall within this range to be eligible for Stretched Senior Debt financing.

Why Is Stretch Senior Development Finance Helpful For Property Developers?

Property developers and house builders 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, for many it allows the opportunity to build more than one development project at a time.

What Information Would I Need To Provide?

  • Applicant company name and details
  • Directors & significant shareholders details
  • Full site/property address details
  • Copy of the planning consent
  • Financial appraisal and cash-flow
  • Detailed build costs
  • Details of the professional team such as architect and structural engineer
  • Procurement method such as construction management
  • Any comparable sales information to support the proposed GDV

A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender.

A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender. We also offer build to let and mezzanine development finance all for residential projects. Contact us today to be put in touch with your local BLG Regional Director who will be happy to discuss your property development funding requirements.

Contact Us Today

    Projects Funded With Stretch Senior Loans From BLG​


    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

    “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

    “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

    "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

    “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

    “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

    “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

    “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

    “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

    “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

    “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

    “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

    “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

    “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

    “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

      Quick Enquiry?

      We’re here to help.