In the complex world of property development finance, managing multiple lenders can be a significant operational risk. A Whole Loan solution cuts through this complexity. It is a single, comprehensive loan facility provided by one lender that covers the entire debt requirement – often reaching leverage points that usually require a combination of senior and mezzanine debt.
Silver Oak Capital works with a select group of private debt funds and specialist lenders who offer whole loans. We provide you with a “one-stop-shop” funding solution that delivers high leverage, speed, and absolute certainty of execution.
Whole loans are the preferred vehicle for experienced developers who value speed and administrative simplicity over the rock-bottom interest rates of low-leverage senior debt.
If you are buying a site with a tight deadline (e.g., out of receivership or with an expiring option agreement), arranging two separate loans (Senior + Mezz) takes too long. A Whole loan can be executed rapidly, often in weeks rather than months.
On larger schemes (£10m+ GDV), the friction of managing multiple stakeholders can slow down construction. Whole loan providers are typically large debt funds with deep pockets, capable of writing cheques for £20m, £50m, or £100m+ without needing to syndicate the loan to others.
Whole Loans offer a simplified product, but the pricing reflects the higher risk the lender is taking by providing all the capital.
You don’t pay a cheap rate on one bit and an expensive rate on the other. You pay a single blended rate on the whole amount. This is typically between 9% and 13% per annum, depending on the leverage and asset class.
Whole loans typically cap out at 75% of Gross Development Value (LTGDV) or 90% of Cost (LTC).
Private debt funds offering whole loans are generally less regulated than high-street banks. They can often take a more commercial view on covenants, pre-sales requirements, and personal guarantees.
Whole Loans are rarely available from high-street banks. They are the domain of pension funds, hedge funds, and private equity. Silver Oak Capital maintains direct lines to these investment managers, ensuring your project is presented to the people with the authority to deploy capital.
The biggest cost saving in a whole loan is often legal fees. Instead of paying for the senior lender’s lawyer, the mezzanine lender’s lawyer, and your own lawyer, you only have two sets of fees. We manage this process to ensure the legal bill remains lean and the facility completes on time.
Whole Loan lenders often charge an exit fee calculated on the GDV (e.g., 1% of the final value). On a large scheme, this is a significant sum. We negotiate to base this fee on the Gross Loan Amount rather than the GDV, or to reduce it significantly for repeat borrowers.
It depends. On a headline interest rate basis, it can look slightly more expensive than a cheap bank loan. However, when you factor in the speed (getting on site faster), the reduced legal fees, and the lack of a mezzanine arrangement fee, the total cost of funds is often very comparable, with significantly less hassle.
Because you have a single relationship with one lender, agreeing to a “cost overrun” facility is easier. You don’t need two lenders to agree on who funds the extra bit. Whole loan providers are often partners in the project’s success and have the discretion to increase the facility if the project viability remains sound.
Yes. Whole Loan providers are often sector-agnostic. They are comfortable funding student accommodation (PBSA), hotels, Build-to-Rent (BTR), and industrial schemes, provided the exit yields and demand are proven.