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Mezzanine
Development
Finance

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

WHAT OUR CUSTOMERS SAY ABOUT US

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with Tracey Abbott, who always provides very clear information and advice and welcomed you and your teams friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with Tracey and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep Clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our Funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with Clients and all documents are very clear and all at BLG are always happy to help.”

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