Senior Debt development finance is the most conventional type of property development loan. The lender takes a first charge over the site / property being developed and can fund up to 65% of the Gross Development Value or 80% of project costs, including an interest provision (so interest does not have to be paid monthly). Senior Debt is the cheapest form of development finance, particularly where the borrower can inject a good amount of cash on day one, towards the land/ property purchase (or refinance).

Whilst a good level of direct development experience can give access to a wider range of lenders, there are lenders who can consider first-time developers.

Residential developments are preferred by most lenders, but there are options for mixed-use, commercial, student accommodation, leisure, care home and industrial developments, countrywide. Currently, there is a massive range of first charge development finance facilities, with options to suit a vast range of circumstances.

What are the Key Features of Senior Debt?

• Typically up to 65% of GDV or 80% of project costs.

• Arrangement fees from 1%.

• Interest rates from 4% per annum.

• Options with no Exit Fees.

• Up to 24 months, or longer by agreement.

• Minimum loan £50k, with no maximum loan size.

• Options with no Personal Guarantees.

• Countrywide coverage.

• Valuation and Monitoring Surveyor (MS) fees case by case.