Senior debt is a first charge development finance loan. The lender may fund up to 65% of the Gross Development Value or up to 80% of the total development project costs. It is generally the cheapest form of development finance and sits as the first layer of debt within the capital stack. The senior debt lender will normally take their money first when the project is finished.
There is a very wide range of lending available so expertise is highly valuable for any developer considering taking on senior debt to fund their project.
Senior Debt Key Features: