Property Development Mezzanine Finance
Mezzanine Finance for Property DevelopmentMezzanine finance can help increase the amount of funds available for your development project. When the bank or lender will not lend you enough funds for your property development project, Oak Laurel can help you borrow at higher loan to value ratios by obtaining mezzanine finance. Oak Laurel’s specialists have access to a range of mezzanine finance options that can get your project funding over the line. We can assist property developers to obtain mezzanine funding across a broad range of property sectors. Ask what we can do for you.
Mezzanine funding can increase the amount that you can borrow for a property development project resulting in higher overall loan to value ratio and less equity input required by the developer.This can be especially important when there is a shortfall between bank funding and the developer's equity contribution.Get competitive interest rates and conditions on mezzanine finance for your next property development project.
Mezzanine finance subordinated debt as a second mortgage against property. A second mortgage is behind a first mortgage claim against property assets.
Mezzanine finance is available at a higher cost than first mortgage debt. This is because it is high risk than senior debt as any claim on property is after senior debt. However, as mezzanine finance is only a small part of the overall development project funding the extra cost due to the use of mezzanine funding is relatively low compared to the overall funding costs.
Mezzanine finance can be a property developer's best friend when there is a shortfall between bank finance, the developer's equity and the development costs.