We fund up to 70% of the true purchase price and provide further borrowing in advance payments to enable the borrower to renovate properties currently deemed un-mortgageable by traditional lenders.

Interest is charged only on funds out at any one time with internal refinance offered once the property is near to completion and the loan to value is 65% ensuring the higher rate lending is only borrowed for as short a time as possible. 

Exit can be by refinancing or sale.

Interest is deducted or serviced or we can work with a combination of the two.

One of the funding gaps we’ve identified and are often asked for is for “top up finance” to stretch the senior debt to a level which allows either a purchaser to conclude their purchase where funds are initially short or where a developer / renovator is short of funds and therefore can’t complete the project but the senior lender is unable to advance further funds.

Mezzanine funding has been around for many years however we’ve seen there’s little appetite and therefore little provision for mezzanine funding under £250,000. Our “Mini Mezz” product allows borrowing on a second charge basis for loans from as little as £5,000 to a max of £100,000 (larger by exception and prior agreement) allowing fast cash flow funding to be injected into the project at often critical moments. 

Once the loan to value has reduced as the project has progressed we find our loans are either repaid by a further advance from the initial senior lender or by a refinance to a new lender at such time the project has reached a “habitable / lettable” state.