Stretch Senior Development Finance

Key Product Features

Loans from £1 million to £15 million
Build duration between 12 and 24 months
Up to 90% funding

Please note that given the impact of Coronavirus, this finance option is temporarily restricted. Please contact us to discuss alternative options available to you.

The development finance you need:

Up to 85% of costs
(90% including rolled-up interest)
Up to 55% of Gross Development Value
(60% including rolled-up interest)
Loans from £1,000,000 to £15,000,000
Build duration typically 12m to 24m.

For your residential developments:

Houses and apartments
New builds and conversions
Mixed-use schemes
Urban and rural locations
Projects located in England, Scotland, Wales and Northern Ireland
In areas with strong demand
No restriction on the number of units.

What is a stretch senior development finance?

It may sound perplexing, but a stretch senior development finance loan (sometimes referred to as an overadvance loan) is actually very simple. These types of loans are designed by specialist development finance lenders, such as BLG, to give property developers access to a greater level of funding – a higher loan to costs/value – than is typically offered by high street lenders and banks.

For example, where banks typically lend up to 60% of costs, BLG’s stretch senior loans are available up to 80% of costs (87% including rolled-up interest). Another way of calculating stretch senior development finance is that it provides up to 65% of the Gross Development Value (70% including rolled-up interest).

So, whereas banks and high street lenders expect you, the property developer, to put cash equal to 40% of costs into the deal, with BLG you can put in as little as 13% of your project costs when rolling up the interest.

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.

A senior stretch loan is quick, efficient and convenient, giving you access to more finance while only dealing with one lender. We also offer Super Stretch Development Finance to provide extra flexibility.

Stretch senior residential development finance for your next build

We have years of experience providing finance for property development and we’d like to help you.

Contact us today on 01483 94 94 94 to be put in touch with your local BLG Regional Director who will be happy to discuss your property development funding requirements.

WHAT OUR CUSTOMERS SAY ABOUT US

“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 Tracey Abbott, who always provides very clear information and advice and welcomed you and your teams 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 Tracey 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.”

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