Our work
The team here at MSB advise both lenders and borrowers on all elements of mezzanine finance and second charges. Our clients range from well established mezzanine lenders providing additional funds to developers who are seeking funds to complete a development, to smaller business’ and individuals looking to release funds from an asset in order to embark on their latest project.
“MSB has assisted us with fundraising and also helping us provide food parcels for some of our students. Nothing is ever too much for them to support us with, or sign post us to others who can.”
Understanding the issue
Mezzanine funding is often taken as a second charge over a property or asset. Borrowers may require a mezzanine loan where they have exhausted the amount that their primary funder will lend them over an asset but they still require additional funding to complete a project or development.
Mezzanine lenders will regularly invest in a development project usually on agreement with the developer that they will receive their loan back plus a small amount of interest, to supplement that they will also be paid an agreed percentage of the development’s profit. Alternatively they may just charge a higher rate of interest or have an agreed fee.
The mezzanine lender will often charge a higher rate of interest that a standard bridging loan due to the higher level of risk that they are taking, should a developer have insolvency issues part way through construction of a development then they will often rank behind the primary lender in their priority as creditors, this will reduce the likelihood of the lender recovering the full amount of their investment and unpaid interest.
Arrange a consultation:
Our award-winning team provides sector-leading services and advice, guiding our clients through the very best solutions for them. We build long-lasting relationships based on mutual trust, respect and results. Get in touch with our team of experts to arrange a consultation.
Why MSB?
Whilst the lenders underwriting team will ultimately be responsible for ensuring the suitability of a development or investment for a mezzanine loan, our team are able to advise on deeds of priority and ensure that consent of the primary lender is obtained where necessary. It is vital that the lender is able to register any legal charge at the Land Registry to protect the funds advanced under the loan.
Our team provides sector-leading services and advice, guiding our clients through the best solutions for them. We develop life-long relationships built on mutual trust, respect and results.
We pride ourselves on our partner-led approach, which ensures a quality, proactive and cost-effective service to our wide-ranging base of commercial and business clients.
Given our well-established, experienced and growing team, you can be confident that we offer all the resource and expert know-how required to reach the right resolution for you and your business.
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