Additional units or planning permission

We recognise that property development rarely goes exactly to plan, and that’s often a good thing. If you’ve secured additional planning permission mid-project or gained approval to build extra units, you may now require more capital than initially anticipated. When your senior lender isn’t willing to increase their loan, mezzanine funding can offer a smart solution. Rather than refinancing the entire loan, mezzanine development finance allows you to raise additional funding through a second charge facility, complementing your existing loan structure.

One of the key benefits of mezzanine funding in property development is its ability to boost overall leverage. For qualifying developments, we can access mezzanine facilities offering up to 65-80% Loan to Gross Development Value (LTGDV). This means you can borrow a greater proportion of the final completed value, ideal when the development scope has grown due to new planning approvals or uplifted GDV. It provides extra capital without the need to dismantle your existing finance agreement.

We also work with lenders that provide up to 95% Loan to Cost (LTC), helping you fund nearly all of your revised construction costs. Whether you’re adding floors, increasing unit density, or changing use class post-approval, this structure allows you to proceed without injecting significant additional equity. It’s a popular option for developers who’ve added value to the site through planning gains and want to maximise returns without delay.

As experienced mezzanine finance brokers, Mortgage Lane has access to a wide network of mezzanine funding providers in the UK who understand these scenarios. We source finance from lenders who are comfortable sitting behind senior debt and who specialise in stepped or restructured developments. This ensures that your project can adapt and grow without facing funding restrictions.