The extension adds an extra 12 months to the initial terms, which were agreed upon in April last year. 

The size of the funding line started at £15m and has so far grown to £40m. 

Clearwell will use the additional capital to provide more stretch senior development loans, as it targets smaller facilities between £1m-3m.

The extended funding line follows the lender's strong performance in August, during which it completed £3.5m of loans.

Clearwell anticipates activity to remain high in the final quarter of the year due to heightened demand from developers for alternative capital to help with rising costs and project overruns.

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“A lot of schemes funded last year are coming to a close; at this point in the project, it can become obvious that the original loan will not stretch to completion due to increased costs,” said Ed Marley-Shaw, chief executive at Clearwell (pictured above).

“Rising inflation and onsite costs are forcing developers to seek alternative capital to plug the gap.

“With a commitment to support clients across the whole project journey, Clearwell seeks early involvement and engagement at the first sign of a problem so it can be mitigated and parties protected,” he added. 

Clearwell also highlighted its plans to lend £100m to SME residential developers in the next 18 months.