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Residential and Commercial Mezzanine Loans

Mezzanine development finance is used to bridge the gap between a senior development loan and the amount of cash/equity that the developer has to put towards the project.  The mezzanine lender will usually take a second charge on the development, sitting behind the first charge of the ‘senior debt’ loan provider.

OUR BENEFITS

  • Fast response time: we aim to respond to your inquiry within the hour.
  • Expert knowledge and outstanding customer service.
  • Clear & concise deal analysis: we quickly advise on the best funding solution.
  • Long-term relationship focus: we always strive for what’s best for our clients.
  • Developer Funds

  • Mezzanine Finance
    (top up funding)

  • Senior Finance

Financing

What Do Property Development Finance Lenders Look For?

Project

  • Scheme expected to be viable with current planning
  • Residential & commercial developments
  • Profitable scheme – minimum profit on cost of 20% after finance costs
  • Profit on GDV >20%
  • Loan to GDV up to 75%
  • Hybrid mezz/equity available for higher LTV’s

Developer

  • Proven track record as a developer
  • Experience in comparable sized scheme
  • Credible net worth
  • PG required with some lenders

Loans

  • Loan size £100,000 – £25,000,000
  • Loan term 6-36 months

Mezzanine Process

The mezzanine finance loan application process is divided into four stages:

1

Phase 1: Initial project appraisal

The development appraisal and supporting documents are studied. If there is lender appetite, indicative terms are issued.
2

Phase 2: Due Diligence and offer letter

If the client accepts the indicative terms, a valuation is instructed, and the underwriters will start analysing the deal in detail.
3

Phase 3: Drawdown

Once the underwriters and legal teams are satisfied everything is in order, the loan will be called for drawdown. Usual timescale is 6 weeks.
4

Phase 4: Monitoring and Repayment

Throughout the course of the loan facility, and prior to each tranche drawdown, a monitoring surveyor will check on the progress of works.
Why Tiger Financial?

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