Mezzanine Funding

Mezzanine funding is the critical funding of the shortfall between the finance available from your bank and the capital required for a property developement project - typically up to 20% of the total project costs.

This enables the developer to limit his equity to 10% of total costs.

Why use mezzanine funding?

By using mezzanine funding the developer has the opportunity to:

Double the return on your equity

Spread your risk

Increase your development capacity

Funding Contributions:

mezzanine-funding-finance-example-180811

What do we offer?

Up to 90% of the total funding required for individual projects with a gross development value (GDV) of £500k - £5M

Decision in one week - provide funding in 28 days

Selection of prime lenders providing first mortgages up to 70% of cost

Provide up to 20% mezzanine funding - see diagram above

Developer typically retains 65% of profit

What are our
lending criteria?

Developer equity contribution of a minimum of

10% of the total property development cost

New residential development only

From a single house to a property development

of up to 10 units

Maximum build period 18 months

Planning permission in place

Land survey and soil tests completed

NHBC/BLP cover

Warranted costs

	For more information on mezzanine funding, contact us on 020 8959 3626 or by email here.
	For more information on our Bridge Funding click here.