£5.9m Senior & Mezzanine Debt secured at 75% LTGDV for 12 Family Homes

Loan Size: £5.9m

LTGDV: 75%

Location: Essex

Loan Type: Development (structured with senior debt and mezzanine finance)

Security Type: 12 large family Homes

Term: 2 years

About the Deal

The client had bought a site and obtained planning. The site had been finance with a bridging loan which needed to be repaid while also providing the construction finance to developer the 5 houses

The Challenge

To enable to current finance to be repaid, and provide a development facility, the gearing required was greater than a senior debt funder could provide and due to the developer being in 2 other schemes didn’t have the necessary funds to enable to shortfall to be covered. This meant there was a requirement not only for the senior debt but also for a mezzanine lender to site behind them to provide the shortfall in capital

The Results

After securing the senior debt at 65% LTGDV, an investment pack was created and presented to a panel of mezzanine funders detailing the required capital needed for the shortfall. We had to work in partnership with the senior debt lender to make sure the deed of priority was agreed and in place prior to completion. There were various complications that arose throughout but worked with all parties to get these in and agreeable position to complete.