Senior development finance plays a pivotal role in enabling property developers to acquire land, commence construction, and complete residential and commercial schemes across Greater London. As a first-ranking, secured lending option, it forms the foundation of the property development capital stack. At Fraser Bond, we offer bespoke advisory services to ensure senior development loans are strategically structured, legally compliant, and tailored to the complexities of the London property market.
Senior development finance is a type of secured loan used to fund large-scale property development schemes. Unlike standard mortgages or bridging loans, senior development finance is designed to support the entire development lifecycle—from land acquisition through to practical completion.
These loans are issued by banks, development lenders, and institutional finance providers, and are secured with a first legal charge on the development site. The lender has priority over other creditors in the event of default, which makes it a lower-risk product from the lender’s perspective and typically more affordable for borrowers.
Senior development loans are tailored to the scale and stage of each development. Fraser Bond works closely with lenders and clients to negotiate favourable terms. Typical components include:
Up to 70–85% LTC
Up to 60–75% GDV, depending on the asset class, location, and borrower profile
Funds are released in staged drawdowns, linked to construction milestones and certified by surveyors. This reduces interest costs and provides close control over project progress.
Rates typically range from 6% to 10% p.a., depending on the lender and project risk
Arrangement fees, exit fees, and monitoring fees are common, and should be assessed as part of the total borrowing cost
Most senior development finance is repaid in full at completion or exit, via sale, refinance, or long-term hold strategy
In London’s high-value, low-yield environment, access to senior development finance allows developers to:
Reduce upfront capital requirements
Commence construction earlier
Secure high-return schemes without overexposure
Retain equity for future phases or investments
Fraser Bond’s clients benefit from tailored capital solutions that align with planning permissions, construction timelines, and sales strategies—whether developing in Vauxhall, Southbank, Canary Wharf, or emerging regeneration zones.
Fraser Bond provides end-to-end development finance services for senior debt solutions, including:
Lender sourcing through our trusted panel of UK development finance providers
Capital stack design, combining senior, mezzanine, and equity where appropriate
Financial modelling, assessing viability, cost control, and exit planning
Legal and compliance coordination, working alongside solicitors and QS teams
Post-funding support, including drawdown management and cost reporting
Our team understands the planning frameworks, construction risks, and legal challenges that shape development finance in London. With Fraser Bond, your finance strategy is as robust as your project pipeline.
Whether you’re building luxury apartments in Zone 1 or regenerating outer London housing stock, senior development finance is an essential funding vehicle. Fraser Bond ensures that every funding package is optimally structured, risk-managed, and executed with precision—enabling you to deliver on time, on budget, and on strategy.
Visit FraserBond.com to speak with our investment finance specialists or arrange a senior development funding consultation today.
