Property developers often find themselves in the position of having being already heavily committed when a great opportunity arises and they have not got enough available cash to fund the whole proposal. They need more cash to bridge the gap between the cost of the land and the build and the finance offered by their principal lender. This is where Mezzanine finance is used to bridge the gap.

Mezzanine Finance is generally secured by a second charge on the land and buildings.

Mezzanine funding is available for up to 100% of the development costs including the land and building costs and is generally available for all kinds of property development.

The high street bank generally make up the first lend at around 70% with the specialist non high street Mezzanine funder making up the balance.  

Whilst we help with Mezzanine Funding we also try and look at the whole picture and see if we can shape a deal and reduce the level of mezzanine funding required.