Key Product Features
- Loans from £100,000 to £3 million
- Terms between 12 and 24 months
- Up to 90% loan to cost
- Second charge, 100% secured on property
BLG does not provide standalone mezzanine finance but we can introduce you to independent funders who may offer additional top-up mezzanine facilities for your property developments.
We work with a small focused group of mezz funders and whilst loans are negotiated independently with the mezz funding providers, the following terms and loan conditions are ‘typical’.
Mezzanine funding overview:
- Loans from £100,000 to £3 million
- Up to 90% loan to cost
(70% loan to Gross Development Value) - Terms 12 to 24 months
- Loans can include part of the land purchase cost
- Second charge, 100% secured on property
Please note that given the impact of Coronavirus, these ratios are subject to changes. Please contact us for the most up-to-date information.
Mezzanine funding criteria:
- Residential: houses, flats, new build, conversions and mixed-use
- Property with a commercial aspect considered
- Property in England, Scotland and Wales in areas with strong demand
- Sites to have outline planning in place.
What is mezzanine development finance? And why is it useful?
A mezzanine loan (or mezz loan) is second charge debt provided to property developers to ‘top up’ the level of finance on a development project.
It’s typically used by property developers to improve their cash flow and consider additional development projects.
If mezzanine financing doesn’t quite reach the levels you need for your project, why not consider our Super Stretch Development Finance, which combines mezzanine and stretch senior finance into one flexible loan package.
How to arrange mezzanine finance with BLG
The first step is to speak with our expert lending team