Stretched Senior Development Finance Rates 2026 — Updated October 2026
- Stretched senior rates
- c.10.5%–12%Stretched senior rates
- Around this leverage
- 75% LTGDVAround this leverage
- Of total costs
- Up to 90% LTCOf total costs
- Last updated
- October 2026Last updated
Stretched senior is a single loan pushed to around 75% LTGDV and up to 90% of costs. It costs more than standard senior debt but avoids a second lender, intercreditor deeds and mezzanine pricing, so it often completes faster.
What stretched senior development finance costs: worked example
- Senior £1.3m at 9.5% plus mezzanine £300,000 at 14% (blended 10.3%)
- £165,500 a year
- Stretched senior £1.6m at 11%
- £176,000 a year
- Difference
- about £10,500 more
£1.6m of borrowing on a £2m cost scheme.
Bought back through one lender, one legal process and a faster start.
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The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
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- Development Finance
- About
- Stretched Senior Development Finance Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Senior development finance currently prices from about 8.8% a year for low-leverage ground-up schemes, with most facilities at 9.5%–12%. Bank Rate is 3.75% after the 17 September hold; development lenders price off their own funding costs, so rates have stayed stable through the September swap-rate rise, and some lenders cut margins over the summer.
Lenders now expect tighter information on build costs, drawdowns and exit before committing.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Who offers stretched senior?
Specialist development lenders and debt funds; we compare them against a senior-plus-mezzanine structure on each case.
Is stretched senior faster?
Usually, because there is one lender, one valuation and no intercreditor agreement.
What leverage is possible?
Around 75% of GDV and up to 90% of costs.
How are funds released?
In stages as the build progresses, usually in arrears, after a monitoring surveyor confirms the work is done.
Do I need planning permission?
Senior development finance usually requires full planning; sites without it are funded with land bridging first.
How long does it take to arrange?
Usually 4–8 weeks, depending on valuation, the monitoring surveyor and legal work.
What is the difference between LTGDV and LTC?
LTGDV compares the loan with the finished value; LTC compares it with total costs. Lenders apply whichever is lower.
What if the build overruns?
Lenders expect a 5%–10% contingency. Overruns beyond it are usually funded by the developer, or by agreeing an extension.
Where this applies
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533