Senior Debt to Total Capital measures the percentage of senior secured loans relative to the entire capital structure in UK property development finance. This includes equity and any subordinated debt. The ratio indicates how much of a development’s funding relies on senior debt, which has the highest repayment priority and typically carries lower risk for lenders. By showing the proportion of secured debt in the total funding mix, this metric helps SME developers and lenders assess financial leverage and risk exposure, providing insight into the project’s funding stability and repayment hierarchy.
This sits beneath Leverage Ratios, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Debt to Capital, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Senior Debt to Total Capital is most commonly encountered in connection with 1st Charge + Top-Up in Same Loan within the property development capital stack.
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