Stretched Senior Development Finance

The lucrative nature of a development project attracts both novice and professional investors because it allows them to diversify their income streams and make a clear profit.

SINCE 2004

Fund Your Development Project Without Multiple Lenders

The lucrative nature of a development project attracts both novice and professional investors because it allows them to diversify their income streams and make a clear profit. One of the main problems investors have is finding a lender to finance large scale projects, but there is a solution.

Stretched senior development finance is essentially a headache-free way to fund your development project because it enables you to borrow off one lender and stretch your equity.

At Loan X, we specialise in brokering senior development finance deals for our clients and work hard to find the best solution that suits you.

As the development industry continues to evolve and offer lucrative opportunities for property developers, we make sure we’re right at the front of the action, which secures the best deals for our clients.

The Benefits of Securing Senior Stretch Finance

When you’re taking on a large development project, there are many things to consider. But at the top of every developer’s list of worries is securing the right finance to cover the project costs and make a profit.

Stretched senior finance enables you to borrow more money while being able to extend your cash further. By borrowing at a higher LTV (loan to value) rate, you can use your money for refurbishments or on another project.

For example, if you want to take on a development project but need a high LTV financing solution, you won’t have any luck with high street banks or lenders because they have strict application rules in place.

But, you can source a senior development loan, which can give you as much as 97% LTV. Many of our clients find higher leverage lending helpful, but securing a deal can be difficult.

Not only do you need to prove to lenders that you’re a viable candidate, but you need to reduce any anxiety associated with awarding higher loan amounts.

It’s why so many of our clients come to us. We always go out of our way to support you through the application and funding process and work with professional developers to secure stretch senior development finance agreements that meet their needs.

Why People Choose Us For Stretch Senior Development Finance Solutions

There are many things to consider when it comes to senior debt, and we often find that our clients’ top priority is securing the right amount of financing for their projects. Our professionals know that securing a loan is only one piece of the puzzle because the provider you choose is central to your success.

Compared to other loans and financing solutions, stretched senior finance is a relatively new industry, which means you should know who you’re dealing with, the loan agreements, and be aware of your obligations relating to senior debt.

Our team can help you to secure the right senior stretch loan and have access to a range of private lenders who are willing to offer bespoke agreements.

Our Professional Team Will Find You The Right Funding Package

As the stretched senior loan is one of the newer financing solutions, it’s essential that you find a lender you can trust. While some lenders might offer low-interest rates, they might not be around in a few months or a couple of years.

We do a lot of research and only ever work with the most reputable private banks. Property developers access the best financing opportunities and can secure a better loan to value rate when working with us.

We Provide More Finance Options

No matter what your project is, our financial advisors can support you with all areas of securing your loan. For example, few private banks will lend a lot of money to a property developer if they don’t have a clear plan in place.

As property professionals ourselves, we understand the importance of detailing your cash contribution to the development and will help you to explain why you need a higher loan to cost amount to lenders.

Detailed Planning and Proposals

Lending someone money requires a lot of trust, and high street lenders tend to have strict criteria so they can avoid potential losses. Private lenders are more likely to judge your application on a case by case basis, which is highly beneficial for property developers.

However, you need to be ready to show a lender the benefits of financing your commercial and residential developments.

We’ll work with you to put together an attractive proposal, which details the planning permission in place, total project costs, the gross development costs, gross development value and an exit strategy.

We Work With a Range of Private Banks

We offer a full-service solution to all of our clients and access a range of high street banks, private banks and lenders. Securing senior debt finance doesn’t have to be a headache, and our team will work tirelessly to ensure the best deal.

Specialist lenders sometimes operate on an invite-only basis, but we’ll put you in front of the right people so that you can begin your project.

Specialists in Non-Conventional Financing

Senior stretch development finance isn’t a conventional solution, so securing it requires excellent negotiation skills. While banks typically lend money based on an applicant meeting a set of criteria, private lenders can create bespoke financing agreements on a per case basis.

Most of our clients need a higher LTV amount, usually between 80-95% of the purchase price. Securing such a large percentage can be challenging, but we’ll work with you to ensure you come across as an attractive applicant.

Frequently Asked Questions About Our Stretched Senior Debt Solutions

Why should I use a broker?

Most of our clients come to us because they know they’ll struggle to secure a loan independently. High street banks have strict application criteria, so it can be hard to get development finance without a professional broker helping you.

We have access to a range of private lenders, and our extensive experience in brokering financial agreements means you have the best chance of success.

How can you help me secure stretch senior development finance?

Once you have an initial consultation, we’ll tell you how we think we can help. If a standard senior debt loan isn’t suitable, we’ll work on brokering a stretched senior loan. In most cases, our clients prefer us to handle the entire process, but we can be as involved as you’d like us to be.

Once we have vital information, such as planning consent and a detailed breakdown of the likely project costs, we’ll approach private lenders and find you the best deal.

You’ll be able to look over the potential agreements and decide which suits your needs. Once you agree, we’ll help you with the documentation and paperwork.

Do you charge professional fees?

As a brokerage firm, we charge a small amount of your agreed-upon loan, but our fees are very reasonable. Don’t hesitate to get in touch with us for a proper breakdown of our charges.

Contact Us Today For a Free Consultation

If you’d like to discuss your finance and loan options with our friendly team, please don’t hesitate to contact us and book a free consultation. We’ll go through all of your options and discuss how we can support you to secure cash for your development.

Whether it’s the more conventional senior debt finance, stretch senior development finance or a bridging loan, we’re confident we’ll be able to find the best deal to move your project forward.

We look forward to hearing from you.