Securing the right finance is central to every successful property investment. For professional investors and developers operating in London’s competitive real estate market, senior debt remains the most cost-effective and secure form of leverage.
Fraser Bond works with investors to structure tailored senior debt solutions, balancing affordability with flexibility while ensuring full regulatory compliance.
Senior debt refers to the primary loan secured against a property or development, carrying the first charge over the asset. It is repaid before any other finance in the capital stack, giving lenders lower risk—and borrowers better rates.
For property investors, senior debt offers:
Up to 75% loan-to-value (LTV) or loan-to-cost (LTC)
Lower interest rates than mezzanine or bridging loans
Access to capital for acquisition, refurbishment, or refinance
Predictable repayment schedules and clearly defined terms
Whether you are purchasing a prime London apartment, funding a value-add development, or refinancing an income-producing asset, senior debt is often the most prudent financial tool.
Senior debt is priced more competitively than subordinated finance. Rates typically range from 5% to 9%, depending on asset class, location, and borrower profile. This makes it ideal for long-term investment strategies or phased development projects.
By covering a significant portion of the purchase or development cost, senior loans allow investors to reduce equity input, freeing capital for diversification or parallel projects. This enhances overall return on equity (ROE).
With clearly defined repayment terms and optional interest roll-up for developments, senior debt facilitates precise financial planning and budget forecasting—critical for institutional and private investors alike.
Fraser Bond delivers a comprehensive suite of debt advisory services, connecting investors with reliable UK lenders and structuring deals to match each project’s unique requirements.
Our service includes:
Sourcing senior loans for London and UK-wide property investments
Negotiating favourable terms with private banks and specialist lenders
Ensuring full compliance with UK property finance regulations
Managing due diligence, valuations, and legal structuring
Advising on blended finance, including mezzanine and equity layering
From first-time investors to seasoned developers, Fraser Bond ensures funding strategies are aligned with both short-term needs and long-term goals.
| Property Type | Use of Senior Debt | Estimated LTV |
|---|---|---|
| Buy-to-let flat in Central London | Purchase and tenant-fit out | Up to 75% |
| Refurbishment project in Zone 2 | Acquisition and build | Up to 70% LTC |
| Income-producing commercial unit | Refinance and equity release | Up to 65% |
| Mixed-use development | Land and construction | Up to 60–70% |
Fraser Bond tailors every finance package to the asset’s lifecycle and risk profile—ensuring cost-efficiency without compromising flexibility.
Senior debt remains the backbone of efficient property finance. With lower interest costs, first-ranking security, and wide lender availability, it supports both yield-focused landlords and growth-driven developers.
At Fraser Bond, we offer independent advice and structured finance support to ensure your real estate investments are fully optimised.
Visit FraserBond.com to speak with our finance advisors or request a senior lending proposal tailored to your next London property deal.
