Mezanine Finance
A 'second-tier' funding resource that sometimes can help a project get completed where the Senior Debt holder is unable or unwilling to meet the necessary costs beyond their standard 60%.
Some principal lenders will allow for financing to be provided by a mezanine funder simultaneously with their own funding. A joint agreement is reached with both parties with the mezanine funder having less security that the Senior Debt holder.
Because the mezanine finance provider has lesser security, it will usually charge a rather higher interest rate and may well require additional security such as a charge on another property.
Depending on your needs and circumstances, it may be appropriate to seek mezanine finance but it is best if this need is identified at the outset so that all funding channels are fully informed and a common approach agreed.
For advice on which methods are appropriate to your circumstances, contact LEA FS.