Telephone: (UK) 0845 260 4410

100% Residential Funding & Mezzanine Finance

The Development Finance Bank work with lenders that allow you, through mezzanine and equity finance arrangements, borrow up to 100% of the total project cost, either for stand-alone projects or ongoing joint venture relationships.

This means that experienced property developers can avoid the frustration of a valuable opportunity slipping through their hands. We offer you financial independence to undertake a greater number of projects, secure in the knowledge that adequate funding is available for each transaction.

The Development Finance Bank has close relationships with mezzanine lenders throughout the UK who provide the shortfall after the senior debt (bank loan), some mezzanine providers will lend the entire shortfall thus facilitating 100% funding, some will require the developer to put 10% into the deal, others will take additional security in lieu of the 10% (Security is normally by second charge) and finally others will find 100% without the need for a senior debt lender.

Equity/Joint Venture Partners provide the difference between what the senior debt lenders have offered and what is needed to complete the project, for this they take a share of the development profits, typically 50/50%. Most will require the developer to provide a cost overrun guarantee to protect the Equity/Joint Venture partners return. The investor will either take shares in the new SPV or enter into a profit sharing agreement, a second charge will also be placed behind the senior debt lenders 1st charge.

The Development Finance Bank ensure that the arrangements are straightforward and free from hidden fees. With the right information the Development Finance Bank can provide in principle decisions within a few hours.

100% Funding is available to experienced developers or developers who have NHBC/Zurich registered builders working on the project in a variety of structures. Whole Debt lenders will provide finance to complete land purchase and all costs.

Key Points to remember:

  • This is only available to experienced developers and contractors.
  • First time buyer properties are preferred over large single properties valued over 500k in the south of England.
  • Profit on the project including senior debt finance should be a minimum of 20%.