The product gives accomplished residential and commercial property developers access to additional leverage alongside a Hodge development finance facility, meaning that they only have to deal with one lender and can retain more equity.
It offers loans to individuals, sole traders, partnerships, LLPs, limited companies and PLCs, of up to £5m, over a 24-month term.
It provides up to 88% LTC (80% on traditional senior debt) and 75% LTGDV (65% on traditional senior debt).
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“At Hodge, we’re dedicated to delivering solutions that meet the needs of our customers and make their lives easier,” said Gareth Davies, head of development finance at Hodge (pictured above).
“Stretch senior provides a fast, seamless, and cost-effective option for customers who require access to additional funding where a Hodge senior development facility is also taken out.
“There is just one debt provider to deal with, one suite of diligence, no additional documentation is required, and all Hodge lending can be arranged via one facility agreement.
“The stretch senior option offers competitive pricing with no additional diligence costs, while customers will continue to deal with their existing, dedicated and experienced team at Hodge.”
In March, the specialist lender expanded its residential development product criteria to include alternative residential asset classes, including student accommodation and retirement living.