PROPERTY FINANCE
Mezzanine Finance
Junior, second-ranking debt that sits behind your senior facility to help complete a project's funding stack.
THE OPPORTUNITY
Mezzanine finance to complete the funding stack
Mezzanine finance is junior debt that ranks behind a senior lender. It helps bridge the gap between what senior finance will provide and what a project or investment actually needs.
Because it ranks second, mezzanine is assessed and priced case by case, with the overall funding stack, security position, costs and exit route all considered. Letfast Finance helps you explore whether a mezzanine layer fits your plans.
A clear starting point
- Focused on the full funding stack, not just the junior layer
- Support for development and investment scenarios
- A considered view of leverage, costs and exit
- No obligation initial discussion
YOUR PLANS
Where it can fit.
Every project is assessed individually. These are common scenarios to discuss.
Senior debt shortfall
Top-up funding where the senior facility alone does not cover the project's full requirement.
Development funding stack
A junior layer within structured development finance, sitting alongside senior debt and equity.
Refurbishment & conversion
Additional leverage for value-add works where senior debt reaches its limit.
Site acquisition top-up
Support to complete acquisition funding behind the senior facility, subject to overall leverage.
Portfolio growth
Extra capital against property assets where existing facilities are fully drawn.
Refinance & recapitalisation
Junior debt considered as part of a refinancing structure, subject to lender criteria.
THE NEXT STEPS
A clear path through.
Initial conversation
We discuss the project, the senior facility and the funding gap you are looking to close.
Funding stack review
We review overall leverage, senior terms, security position, costs and the exit route.
Route exploration
We explore suitable mezzanine routes, how they are priced and the conditions that would apply.
Progress to completion
If the application proceeds, valuations, legal work and intercreditor arrangements need to be satisfied before completion.
USEFUL TO KNOW
Your questions,
answered.
What is mezzanine finance?
Mezzanine finance is junior debt that sits behind a senior lender, used to complete a funding stack when senior debt and equity alone are not enough. Because it ranks second, it is assessed and priced case by case.
What security is taken?
Mezzanine finance is typically secured by a second-ranking charge behind the senior lender, with an intercreditor arrangement between lenders. Security is assessed on a case-by-case basis.
How is it assessed?
Lenders consider the overall loan-to-value and loan-to-cost position, the senior facility's terms, the project costs, the exit route and the borrower's experience. We help you present the case clearly.
Are there fees?
Any fees would be discussed and agreed upfront before you proceed. The initial conversation is no obligation.
LET’S TALK
Put your plans
in motion.
Share a few details about your project and the finance you’re looking for.