Key Product Features
- Loans from £1 million to £15 million
- Build duration between 12 and 24 months
- Up to 90% funding
The development finance you need:
- Up to 85% of costs
(90% including rolled-up interest)
- Up to 65% of Gross Development Value
(70% 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 0845 465 6500 to be put in touch with your local BLG Regional Director who will be happy to discuss your property development funding requirements.