Mezzanine Finance for Property Development
Now available up to 90% of costs
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Mezzanine finance is a vital tool for experienced property developers, as most lenders have reduced senior debt levels to around 60% of costs. By using mezzanine finance, the developer will only need to input 10% equity into the project - this may include any planning gain you have made.
All successful property developers "gear up" by borrowing a higher percentage against each development. Read our article on how gearing up can increase your profits and reduce the risk to your business.
We arrange mezzanine finance for property developers subject to experience and status, on developments of £1m - £50m GDV. Mezzanine rates are naturally higher, due to the increased risk to the lender. However, we keep this cost to a minimum by repaying the mezzanine finance early - upon completion of construction - and replacing it with cheaper senior debt.
There is no substitute for talking your project through with an expert in property development finance, who has the skill and experience to understand your business, your development project and your financial requirements. We then apply our detailed knowledge of all lenders and their terms in order to structure the optimum mezzanine finance for your property development.
Complete our online enquiry form now! 
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Mezzanine Finance for Property Investment
Available from £1m - £50m up to 90% LTV
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Mezzanine Finance is the ideal solution for experienced property investors and provides additional funding to grow the portfolio. It is used for property investments with high returns - over and above that required to service the senior debt - and reduces the required deposit to 10% instead of the usual 25-30%.
Mezzanine finance is also used for investment properties where cashflow is not stabilised. For example, the property requires significant improvements in order to attract new tenants and higher rents. A mezzanine lender can provide the top-up finance needed to complete the refurbishment. The borrower and their project manager must have previous experience and expertise in value-add investments.
Although mezzanine finance is more expensive than senior debt, it is a very useful short term tool which provides high gearing and frees up capital for aggressive portfolio growth. Property investment mezzanine finance usually has a 3-year term and is repaid by refinancing onto standard commercial mortgage rates when increases in property values allow, or with capital gains made from disposals.
Complete our online enquiry form now!
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Need Mezzanine Finance? You Need a Quote!
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If you need mezzanine finance, there are several lenders to choose from, whose terms vary greatly. The difference in cost can run into tens of thousands of pounds. Make sure you get the best terms - contact us now!
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(Customer Testimonials)
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