Senior debt remains the foundation of real estate finance in the UK, especially in high-value markets such as London. Whether funding residential developments, income-generating assets, or mixed-use regeneration schemes, senior debt plays a critical role in ensuring capital efficiency, legal compliance, and investment viability.
Fraser Bond provides bespoke senior debt advisory services, supporting investors and developers across the full lending lifecycle—from sourcing and structuring to drawdown and exit.
Senior debt refers to the first-ranking loan secured against a property or development asset. It sits at the top of the capital stack, meaning it has the highest repayment priority and is typically secured by a first legal charge. Because of its lower risk position, senior debt attracts lower interest rates than mezzanine or equity capital.
For most real estate transactions, senior debt will fund between 60% and 70% of the property’s value (LTV) or 65% to 80% of the total project cost (LTC), depending on the lender’s appetite, asset class, and borrower profile.
Fraser Bond helps structure senior loans to ensure suitability across acquisition, development, or refinance stages. Key features include:
Senior lenders take a first charge over the property, giving them enforceable rights if the borrower defaults. This makes senior debt the safest part of the capital stack.
LTV: Typically 60%–70% for investment property; up to 80% LTC for development
Term: 12–36 months for development loans; up to 5–10 years for income-producing assets
Interest: Ranging from 5.5% to 8% per annum for London-based transactions
Lenders may include covenants such as pre-sale requirements, cost overrun guarantees, or interest coverage ratios. Fraser Bond helps negotiate lender-friendly covenants to minimise project risk.
Senior real estate loans are ideal for:
Acquiring residential or commercial property in Central London
Funding large-scale regeneration projects in areas like Nine Elms, Canary Wharf, and Stratford
Refinancing investment assets to release equity for expansion
Structuring layered finance deals, where senior loans sit above mezzanine or equity components
In all cases, Fraser Bond ensures that the senior loan is aligned with exit strategy, compliance requirements, and return objectives.
As a London-based property consultancy, Fraser Bond offers specialist support for clients seeking senior loan facilities. Our services include:
Capital structuring for development, bridge, or investment scenarios
Lender engagement and debt sourcing from UK-based banks and private institutions
Compliance coordination including legal, valuation, and quantity surveying requirements
Drawdown support and cost monitoring for development finance
Exit strategy advisory, ensuring smooth refinance or asset disposal
Whether you're acquiring a luxury apartment block in St George Wharf or financing a mid-rise development in Vauxhall, Fraser Bond helps secure senior loans that reduce equity exposure while enhancing returns.
Senior debt remains the most reliable and scalable form of property finance in the UK. With robust legal protections, competitive pricing, and a wide lender base, it offers developers and investors the capital stability they need to execute high-value transactions.
Fraser Bond combines deep market expertise with lender relationships to deliver senior loan solutions that are aligned with London’s fast-paced real estate environment.
Visit FraserBond.com to explore tailored senior debt options or book a funding consultation with our investment advisory team.
