Updated October 2026 · Fraser Bond
Development finance · Fraser Bond
Stretch Senior Loans
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Costs at a glance
Most bridging interest is rolled up or retained. Add valuation and legal fees.
The guide
Stretch senior loans are an advanced development finance solution that blends senior and mezzanine characteristics to provide increased leverage for property developers. In London’s highly competitive property landscape, securing flexible, high-LTV funding is essential for executing large-scale or capital-intensive projects. Fraser Bond offers expert advisory on structuring stretch senior loans that maximise borrowing capacity while maintaining risk control and compliance.
What Is a Stretch Senior Loan?
A stretch senior loan is a hybrid development finance product that extends beyond traditional senior loan limits, typically offering a loan-to-cost (LTC) of up to 85–90% or a loan-to-GDV of up to 75–80%. These loans consolidate the first and second-charge funding layers into a single, streamlined facility—reducing complexity and accelerating drawdown timelines.
Stretch senior facilities are secured with a first legal charge over the development site, but include higher-risk pricing typically associated with mezzanine lending. They are particularly well-suited for experienced developers seeking enhanced leverage without the administrative burden of sourcing multiple funding tranches.
Key Features of Stretch Senior Development Finance
Fraser Bond supports clients through every stage of the funding process, ensuring stretch senior facilities align with project and investor objectives.
1. Higher Leverage
Stretch senior loans provide more capital than standard senior debt—ideal for developers with strong track records but limited equity deployment capacity.
2. Integrated Structure
By combining senior and mezzanine into one agreement, developers avoid dual legal representation, intercreditor agreements, and drawdown delays.
3. Market-Based Pricing
Interest rates range between 8% and 12% per annum, reflecting the increased risk and convenience of blended capital.
4. Developer Flexibility
Funds are released in tranches against construction milestones, with interest typically rolled up and repaid on sale or refinance.
When to Use a Stretch Senior Loan in London Property Development
Stretch senior loans are ideal for:
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Urban infill or mixed-use projects in Zones 1–3
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Large GDV schemes where mezzanine debt is unavailable or inefficient
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Developers requiring up to 90% LTC with minimal equity input
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Projects with strong pre-sales or exit plans that justify enhanced leverage
Given London’s land values and construction costs, these loans empower developers to pursue high-margin opportunities that may otherwise be out of reach.
Fraser Bond’s Stretch Senior Lending Support
At Fraser Bond, we specialise in sourcing and structuring stretch senior finance packages through our network of trusted UK development lenders. Our services include:
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Capital structuring to balance cost, risk, and return
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Lender negotiations to secure favourable pricing and terms
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Due diligence support, including viability analysis and project feasibility
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Drawdown and cost-monitoring coordination with quantity surveyors and project managers
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Exit planning to prepare for sales or refinance on completion
By aligning your funding with your development strategy, Fraser Bond delivers scalable, lender-ready finance solutions that are built for London’s complex property landscape.
Conclusion – Unlock Greater Funding with Stretch Senior Finance
Stretch senior development loans are a powerful tool for ambitious London developers seeking greater leverage without excessive administrative or legal friction. Fraser Bond offers the experience, lender access, and compliance rigour required to structure stretch senior finance that works—supporting your growth, protecting your investment, and powering your next project.
Visit FraserBond.com to explore stretch senior lending options or schedule a funding consultation with our investment advisory team.
What to have ready
Important: your home or property may be repossessed if you do not keep up repayments on a loan secured on it. Bridging loans secured on a home you or your family live in are regulated and must be arranged by an FCA-authorised firm.
Frequently asked questions
How fast can finance complete?
Bridging can complete in days to weeks, depending on valuation and legal work.
What is an exit route?
How the loan will be repaid, usually by selling or refinancing.
Can Fraser Bond help?
Yes. Send us an enquiry and we'll talk you through the options.
Ready to talk finance?
Tell us what you need and our team will be in touch.
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