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Home > Services > Stretch Senior Development Finance

Stretch Senior Finance

Speak to our trusted experts on stretch senior finance today. Perfect for developers looking for extra additional leverage.
What Clearwell Capital can offer
Clearwell's stretch senior product provides development finance at a higher leverage than traditional high street or challenger banks.

For example, where banks typically lend up to 70-80% of costs, our senior stretch loans can cover up to 90% of total project costs. This higher leverage lending is perfect for property developers as it means you won't need to provide such a large percentage of funding yourself. This not only helps with cash flow but also provides the opportunity to build more than one development project at a time.
What Is Stretch Senior Debt?
Stretch Senior Debt refers to a first charge development loan that provides a higher Loan to Cost percentage than a typical Senior Debt facility can allow.

With a stretched senior loan, you only have to deal with a single lender and this streamlines the process. This creates speed and convenience throughout the process, saving time and cost of legal fees.

Using stretch senior debt is an alternative to using "structured" funding packages like Senior Debt and Mezzanine Finance and work for developers with multiple properties within a portfolio.
Stretch Senior Finance capital stack diagram
Speak To Our Experts

"Securing the right funding is half the battle for complicated projects. It is essential to find a funder who understands our goals and sees themselves as part of our team. We have found this in Clearwell Capital"
- Newlands Development

Working With Us

We have had the pleasure of working with an incredible range of clients over the years. These are just a handful of reasons why our working relationships with our clients are second to none.
EXPERT ADVICE
We provide expert advice on financing your project
GUIDANCE
You can receive ongoing guidance for resolving any complications
CONCEPT TO COMPLETION
From laying your first brick to financial completion, our professional team will be with you every step of the way
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Senior Stretch Lending Criteria

PROJECT
• Viable - The scheme should be viable with current planning permission
• Residential Lead - We will consider sites with a commercial element of less than 20% of GDV
• Profitable - Minimum profit on the cost of 20% after finance costs
LOAN
• Loan sizes from £250k to £2.5M
• Loan term from 6-36 months
• Loan to GDV up to 75%
• Loan to cost up to 90%
DEVELOPER
• Proven track record of developments
• Satisfactory asset and liability position
• Willing to provide a personal guarantee
Clearwell Capital by numbers.
Clearwell Capital has been supporting SME housebuilders since 2014. Supporting the development of over £340M worth of property across the UK.
Gross Development Value Funded To Date

£370M

Developers Supported

74

Opportunities Assessed In The Last 12 Months

400+

Projects Financed

100

Residential Units Financed

1185

Value Of Opportunities Assessed In The Past 12 Months

£2.6B

Why Choose Us For Stretch Senior Development Finance?

Here at Clearwell Capital, we also pride ourselves on our premium standard of customer service, and pride ourselves on responding to 86% of applications within 24 hours of receiving them.

We have also reduced our processing time to an average of 4 - 8 weeks, which is one of the fastest you’ll find in the industry. Once a site visit has been undertaken, it typically takes our expert teams less than a week to secure credit committee approval for your stretch senior loan.

This means that we can confidently guide you through the process while being mindful of the time-sensitive nature of your project.

Talk to us today to see how much you could borrow and take the first step towards a supportive, end-to-end finance partnership.

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Frequently Asked Questions

What is your maximum loan-to-value on Senior Development Loans?
Clearwell offers a stretch senior loan that provides loans up to 90% of Total Costs and 70% of the Gross Development Value.

How quickly can Clearwell complete a Senior Development Loan?
Clearwell will always aim to complete as quickly as possible however timings do need to be realistic. Typically, a senior development loan takes between 6-8 weeks to complete, however, our record stands at having completed a Senior Loan transaction in 9 working days.

Does Clearwell Capital use the 90-day or 180-day valuation amount when assessing a Senior Development Loan?
No, Clearwell uses the full valuation amount based on an unrestricted open market sale.

What is the interest rate on Development Finance?
Clearwell offers interest rates from 6.5% over the Bank of England Base Rate.

What is Development Exit Finance?
Development Exit Finance provides developers with a longer sales period than they typically have left on their existing Development loan, which was utilised for the construction work. The Development Exit loan would repay the existing lender on a project that is substantially or wholly complete and provide a new loan term to allow for sales or refinance.

GET IN TOUCH

Please get in touch with Callum, our expert on Stretch Senior Finance.

Enquire Now
or call Callum Ferguson

Need to finance your next development?

Clearwell have a dedicated team of industry professionals on hand to discuss your funding requirements.

Contact us today to see how Clearwell can fund your next development.

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Disclaimer
This website is for use by property professionals and introducers only. Clearwell Capital Group Ltd and its subsidiaries are not regulated by the Financial Conduct Authority. Your property may be at risk if you do not keep up repayments on any loan secured against it.