Mezzanine Funding


Mezzanine Funding

We are experienced in providing mezzanine funding to a range of clients across central, and southern, England. This type of finance sits behind what is known as senior debt, usually on the basis of a second charge on the security.

Mezzanine funding can increase the property developer’s liquidity, when the main development loan is insufficient. Due to the recent issues with the mainstream banking system, we have been able to use mezzanine finance in more imaginative ways. There are many sets of circumstances where banks have an exposure to land but are unwilling to commit to fund a developer to build or complete his project. By bringing in a mezzanine funder to carry out the build, we can enable the property developer to conclude the project, for the senior debt to be repaid and the profit to be realised.

Where negative equity prevails, it is sometimes possible for us to help their clients to insert a second charge, with the bank taking a further third charge so that the build out can be realised and the situation achieved where the bank does not lose money and a small profit is realised.