Typically used in Development Finance but also available for Commercial Property, it refers to a class of loans that offer higher LTC and / or LTGDV than a normal standalone Senior Lender. It’s like a combination of Senior + Mezzanine, except you would still normally achieve a higher loan with Senior + Mezzanine. A Senior Lender will normally go to 60% or 65% LTDGV, whereas a Stretched Senior Loan may go to 70% LTGDV. On a Senior + Mezzanine loan, you can achieve 75% LTGDV. As you would expect, rates are higher for Stretched Senior than for Senior Only Loans. The term is also used in the Commercial Mortgage market, as Alternative Lenders continue trying to make inroads to the main lenders market share.
