A Mezzanine loan enables house builders to improve their cash flow, acting as a type of top up funding to help fill a gap between a developer’s equity and the amount that the main lender will provide.
Utilising mezzanine funding allows the developer to obtain maximum return with minimum cash contribution. Often with many developers, having a reliable cash flow and good contribution levels can be the key to a project’s success and giving the developer the ability to potentially invest in other opportunities.
Mezzanine Finance applications are assessed individually although certain criteria must be met by any project. These include:
• A loan term of 12 to 14 months.
• Sites that have outline planning already in place.
• The borrower is a property developer or house builder with an established track record, the project is located in England, Wales or Scotland in an area with an established demand for new homes and that the development is for houses, flats, new builds, conversions or property with a commercial aspect considered.
Specialist renovation finance for your needs
Solutions to purchase or refinance land
For complete or near complete developments
Your Commercial Finance is a trading style of Your Mortgage Broker Cardiff Ltd which is directly authorised and regulated by the Financial Conduct Authority (FCA).
Our FCA registration number is 765678. You can find us on the FCA register at https://register.fca.org.uk/.
The FCA does not regulate some forms of buy-to-let, overseas and commercial finance and taxation advice.