Capital Stack
Mezzanine Finance for UK Property Development
structured to perform
30+ years · 110+ specialist lenders · £68.6m largest facility
Mezzanine finance sits between senior debt and your equity — filling the funding gap and reducing the cash you need to put into a project. This increases your return on capital employed and allows you to take on more projects simultaneously.
£500k — £20m+
Loan Size
6 — 24 months
Typical Term
Up to 90% LTGDV
Typical LTV
Key Features
What We Offer
Reduce Your Cash-In
Mezzanine sits behind senior debt, reducing the equity you need from 30-40% down to as little as 10% of costs.
Increase ROCE
Less of your own money in the deal means a higher return on capital employed. Scale faster.
Structured Alongside Senior
We arrange mezzanine and senior debt as one package — not as an afterthought. Cleaner, faster, more competitive.
Interest Rolled Up
Like senior debt, mezzanine interest is typically rolled up and repaid at exit. No monthly payments.
Flexible Providers
Access to 15 specialist mezzanine lenders, family offices and private capital sources.
Ideal For
Common Scenarios
Stretch Senior Debt
When senior debt covers 60-65% of costs, mezzanine fills the gap to 85-90% — leaving you with minimal equity requirement.
Scale Your Portfolio
Instead of putting 35% equity into one project, spread your capital across three or four with mezzanine support.
First-Time Developer Support
Mezzanine can help first-time developers access projects they couldn't otherwise fund from their own resources.
Cost Overrun Cover
If your project has gone over budget, mezzanine can provide additional capital to complete without selling equity.
Capital Stack
Where mezzanine sits
Mezzanine finance fills the gap between senior debt and your equity. It's a second-charge loan — junior to the senior lender but senior to your own capital.
With senior debt typically covering 55–70% of costs, mezzanine can take total borrowing up to 85–90%. The result: your equity requirement drops from 30–35% to as little as 10–15%.
We coordinate the entire structure — senior lender, mezzanine provider, and intercreditor agreement — as one package.
Equity
Equity
Mezzanine
Debt
We structure the optimal mix for your project
Mezzanine FAQ
Mezzanine finance — common questions
What is mezzanine finance in property development?
Mezzanine finance in property development is a second-charge loan that sits between senior development debt and the developer's equity in the capital stack. It increases total leverage (typically taking the developer's equity requirement from 30-40% down to 10-15% of cost) at higher pricing than senior debt — usually rolled-up interest in the 12-18% range. Mezzanine providers take a junior position to the senior lender, governed by an inter-creditor agreement, and are repaid alongside senior debt on exit. The structure suits developers who want to scale across multiple schemes rather than concentrate equity in one.
How does UK mezzanine finance work?
In the UK, mezzanine finance for property development is typically arranged alongside the senior development facility — same broker, same closing timetable, single underwriting package. The senior lender holds first charge over the site; the mezzanine provider takes second charge with cure rights and step-in provisions defined in an inter-creditor agreement. Drawdowns are synchronised so the mezzanine doesn't run ahead of the senior, and both facilities are repaid on exit from sales proceeds or refinance. Most UK mezzanine providers operate in the £500k-£20m+ bracket against schemes with strong GDV evidence and disciplined cost plans.
When does mezzanine finance make sense for a development scheme?
Mezzanine makes sense when the developer wants higher leverage than senior debt alone provides — typically when the equity requirement on a scheme would otherwise tie up capital better deployed across multiple sites. It also makes sense for first-time or growing developers who can fund a scheme's equity but only by concentrating their balance sheet in one project. The trade-off is cost: mezzanine pricing is materially higher than senior debt, so the additional leverage needs to be earning more than it costs. We model the blended cost of capital and the impact on developer profit-on-cost in every mezzanine appraisal.
Ready to Discuss Your Project?
Get a development appraisal or arrange a call with a specialist.