Speak To Us Today!
Design planning using mezzanine finance

Although the property market is in the ascent again, lending is still not back to its pre-recession levels and developers often find themselves with a shortfall between the total of their principle lending, their own equity and the gross development cost.

If that sounds familiar, mezzanine finance could be the answer – it is short-to-medium form of property finance that will bridge the gap in your funding and maximise your own return on your equity.

How mezzanine funding works

Typically, we can provide up to 20% of the gross development value in mezzanine funding to get your scheme off the ground, and limit your own equity invested to 10%.

While the structure of every development is different, typically with a mezzanine funded scheme, your principle lender will provide 70% of the gross development value, your equity will be a further 10%, and then mezzanine funding will make up the shortfall of 20%.

With that structure, you could get up to a 65% share on the profit of the development and the mezzanine funder would receive 35% of the profit.

Mezzanine funding will be secured against your development, so a second charge will be placed on it, alongside the first charge from your senior lender.

Who can use mezzanine funding?

Whether your scheme is a new-build residential development or a mixed-use project, if you are an experienced property developer, mezzanine funding is a good way of topping up the investment in your development and making sure you can capitalise on every opportunity that comes your way.

At Access Commercial Finance, we can reach an excellent range of mezzanine funders to find the deal that’s a good fit for your development.

As well as our financial acumen, we are experienced property investors ourselves, so we understand the challenges that you might face when you are looking for mezanine funding. We can use our insight into the property market, to assess the value of your development, spot its potential and then help you unlock it.

To successfully structure a mezzanine deal, funders need to liaise with principle lenders, and our know-how, experience and contacts will help us do this with ease, ensuring smooth delivery of the finance that underpins your development.

Call us today to find out if we can provide the mezzanine funding that could unlock the potential in your property plans.

Our Latest Blogs

  • Construction Finance: Funding Challenges & Solutions

    Securing mainstream construction finance was never a simple enterprise, but it’s actually getting harder. This is especially true in the UK, where scrutiny from lenders has intensified over recent years, making it trickier and more time-consuming than ever for construction firms - even those with a healthy order book and a history of sound financial conduct - to secure the finance they need to grow.

  • Engineering Finance: Which Funding Option Is Right For Your Business?

    The success of your engineering business often comes down to getting the right funding at the right time. Should you invest in sales or technology? Have you identified new products or new economic territories? What are your funding options and how should you be using them?

    UK engineering firms are continually praised for their engineering excellence and there is a strong tradition to maintain. Current engineering feats like Crossrail, Leeds’ new £45m flood alleviation scheme, the new Forth road bridge and the Olympic Stadium show that British engineering ability is still as innovative today as it was in the time of Brunel.

    But it isn’t without its difficulties and finding appropriate finance is often at the very heart of meaningful progression and innovation.

    There is a real need for flexible finance to react to the changing market conditions, which includes the current uncertainty of an EU trade deal as well as the opening up of other overseas markets.

  • 8 Ways Unsecured Loans Can Help Your Construction Business Thrive

    The importance of finance within the construction industry cannot be understated. Not least because it is the most competitive and payment-delayed industry in the UK. Understanding how the financial challenges affect your business is just the start.

  • What Is Commercial Property Finance and Should You Invest?

    There aren’t many cash buyers when it comes to commercial property development. Anyone involved in this sector usually requires large-scale finance for their projects. Are you looking to develop a commercial project and if so should you even be looking to invest in property development?

    If you’d like to understand whether you want to invest in commercial property, you need a clear distinction on what a commercial property is, how it will be developed and whether you can afford to purchase it. Then, you need to consider whether taking commercial development finance is right for you and if the economic forecast makes it a good time to invest.

Hot from Twitter

An £85,000 funding boost provided by Access Finance has helped Peters Department Store in Huddersfield, by revitalising their brand and refitting their new premises. Find out more at bit.ly/2zJPSlB pic.twitter.com/hc9C…

About 15 hours ago from Access Commercial's Twitter via HubSpot · reply · retweet · favorite

Contact Access Commercial Finance Today