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What is Mezzanine Development Finance?

A mezzanine loan (or mezz loan) is second charge debt provided to property developers in order to ‘top up’ the level of finance on a particular project.


The provision of a mezzanine loan can enable property developers to improve their cash flow and consider additional development projects.


A mezzanine finance gives a property development flexibility as there is the option to choose from a range of repayment schedules and structures to suit the business. A mezzanine loan can also allow a developer to make reduce the capital in a project end enable them to fund other projects.


Typically a mezzanine loan covers 90% of the project costs and up to 75% of the GDV. Loans can include part of the land purchase cost and take a second charge over the property.

There is a full range of development funding options available to assess the optimal finance package for a developer’s project and business including Stretch Senior Development Finance.


Please speak to us on 02071128123 or email hello@adelphacapital.com if you would like further information on development financing options or have a specific case to discuss.

Adelpha Capital Ltd trading as Adelpha Property Finance do not provide regulated bridge and development loans and are not regulated by the Financial Conduct Authority. Think carefully before securing debts against your property. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

 

Registered Address: Adelpha Capital Ltd, 27 Old Gloucester Street, London, WC1N 3AX, UK

Company Number: 10409699

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