Mezzanine Finance
for Hessle Developers

Mezzanine providers range from specialist debt funds and family offices to institutional lenders with dedicated stretched-senior products. Each has different risk appetite, pricing structures, and minimum deal sizes. Matching your scheme to the right mezzanine provider is as important as finding the right senior lender.

First-charge mezzanine — where a single lender provides both senior and stretched-senior tranches up to 85-90% LTC — has grown in popularity as it eliminates intercreditor complexity. However, the pricing is typically higher than a properly structured two-lender capital stack, so the right approach depends on scheme economics and your appetite for structural complexity.

Timing is critical with mezzanine: most providers need to complete their due diligence in parallel with the senior lender to avoid delays. We recommend engaging the mezzanine conversation early — ideally at the same time as senior lender selection — rather than trying to layer it in after senior terms are agreed.

Yorkshire and the North East offer some of the UK's most attractive development economics: low land costs, competitive build prices, and surprisingly strong rental yields in cities like Leeds, Sheffield, and Newcastle. The region's university cities generate consistent demand for student accommodation and young professional rental housing.