Mezzanine Development Finance2018-06-15T11:52:47+00:00

Understanding Mezzanine Development Finance

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What is Mezzanine Finance?

Mezzanine development finance is designed to act as a top-up loan, to bridge the gap between the developer’s available deposit and the loan available from the senior lender. Mezzanine funders will usually secure their position by taking a second charge over the development to ensure their capital is secure.

By supplementing their borrowing with mezzanine finance, property developers can secure the highest return on investment, with the lowest deposit contribution.

This financing option is generally used to reduce the deposit needed to undertake a property development project. Funding can be used to reduce deposits, to fund a gap in deposit, or to allow you to retain funds for future deals.

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Criteria

Below are the main criteria points to consider when taking out mezzanine finance.

1Borrow up to 90% loan to cost
2Terms from 6-24 months
3No maximum loan size
4Experienced developers preferred
5Planning permission in place or permitted development rights available
6Loans can include part of the land purchase costs

How Much Can I Borrow?

We can offer mezzanine funding from £250,000 with no maximum loan size. We can usually fund up to 90% of the total project costs using mezzanine finance.

How Much Will It Cost?

Mezzanine finance tends to be priced on a case by case basis, we work with lenders across the whole market to ensure we always secure the best terms for your project.

Pricing will usually depend on the following factors:

  • Amount of deposit input
  • Likely demand for the finished product
  • The scheme being lent against
  • The strength and experience of the borrower
  • The location of the project
  • The amount required

Secure The Lowest Mezzanine Finance Rates

Our advisers can offer market leading mezzanine funding – fast.

We work with lenders across the sector to provide fast and reliable mezzanine finance up to 90% of the project costs.

What Locations are Eligible for Funding?

We can offer funding for schemes across England, Wales and Scotland. We have funders who can offer special, low rate lending for projects in London and the South East.

Contact Us Today

At ABC Finance Ltd. we’re committed to helping you secure the best rates possible on mezzanine development finance.

Enquire online now or call us on 01922 620008 to get a rapid bespoke quote.

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