What is Mezzanine Development Finance?
A mezzanine loan (or mezz loan) is second charge debt provided to house builders in order to ‘top up’ the level of finance on a particular development project.
The provision of a mezzanine loan can enable house builders to improve their cash flow and consider additional development projects.
Not only is mezzanine finance property development flexible – giving you the option to choose from a range of repayment schedules and structures to suit the business – it can also allow you to unlock the funding required for a project.
BLG Mezzanine Financing:
- £250,000 to £3 million
- Typically 90% loan to cost / 70% loan to GDV
- 90% Loan to Cost excluding interest rolled up on the facility
- Loans can include part of the land purchase cost
- Second charge security.
Each application is assessed and negotiated on its individual merits but the following criteria apply:
|Loan term:||12 to 24 months|
|Developments:||Houses, flats, new build, conversions, office to residential and property with a commercial aspect considered|
|Site location:||England, Scotland and Wales in areas with established demand for new homes|
|Borrower:||Property developer / house builder with established track record|
|Costs:||Typically: Arrangement fee, interest rate, exit fee, valuation, legal, monitoring surveying fees and non-utilisation fee (for committed but non-utilised capital)|
|Planning:||Sites to have outline planning in place.|
How to Apply
Call our highly skilled and professional team on 0845 465 6500 or Send us a message to be put in touch with your nearest BLG Regional Director.
If you have any concerns about mezzanine financing, simply talk with BLG today. Our business is helping you build.
Looking for an alternative development funding?
BLG provides a full range of development funding options including Stretch Senior, Equity finance and Joint Venture (JV) finance. We have the experience and capability to offer the best funding solution to meet your requirements.