Funding Your Development Finance Shortfall
Mezzanine development finance is designed to act as a top-up loan to assist funding projects that have haven’t been fully funded by the developer and senior lender.
It is a top up facility that sits behind the ‘Senior Debt’ that is secured by a 2nd charge over the development.
By using mezzanine finance, property developers can secure and complete a development with a lower deposit contribution. This doesn’t mean that the developer can fund the project without any investment, a minimum contribution from the developer of 10% of project costs will still be required and this type of finance isn’t available to everyone.
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