Stretch senior finance
Higher-leverage senior debt, structured as a single facility rather than senior plus a second-charge mezzanine tranche — for developers who need more leverage but want to keep the capital structure simple.
What is stretch senior finance?
Stretch senior finance is a single first-charge facility priced and structured to reach further into the capital stack than standard senior debt — typically up to around 75% LTGDV rather than 65% — without introducing a second-charge lender. It is priced between standard senior debt and combined senior-plus-mezzanine.
It suits developers who need higher leverage than a conventional senior facility but who want a single lender relationship and a single set of loan documents, rather than negotiating an inter-creditor agreement between two lenders.
Who it's for
Developers who need higher leverage than standard senior debt but want to avoid a second charge.
Schemes where a single lender relationship is preferred over negotiating an inter-creditor agreement.
Experienced developers with less equity to commit than a standard senior facility would require.
How it works
Eligibility
Fewer lenders on the panel offer stretch senior terms than standard senior debt, so track record and scheme quality are weighted more heavily.
Costs
Priced between standard senior debt and a combined senior-plus-mezzanine structure. Indicative figures — subject to status, valuation and lender criteria.
When to use stretch senior finance vs. the alternatives
Questions on stretch senior finance
How is stretch senior different from senior plus mezzanine?
Stretch senior is one facility from one lender at a blended rate; senior plus mezzanine is two facilities from two lenders, each priced separately and governed by an inter-creditor agreement.