16-unit scheme with mezzanine, Liverpool
Senior + mezz stack at construction. Dev exit refinanced both in one facility at 68% LTV of completed value. Mezz repaid in full, profit distribution followed final unit sale.
Facility
£5.4m
GDV
£8.0m
LTV
68%
Monthly rate
0.72%
Term (agreed)
15m
Actual hold
13m
Est. all-in cost
£586,440
Cost vs facility
10.9%
Outcome
Closed on plan.
Senior + mezz stack at construction. Dev exit refinanced both in one facility at 68% LTV of completed value. Mezz repaid in full, profit distribution followed final unit sale.
Lesson
Dev exit is the natural exit for a senior+mezz stack. Single-facility simplification saves legal costs and covenant headaches.
What the numbers show
Over an actual hold of 13 months at 0.72% per month, monthly interest on a £5.4m facility runs to about £38,880 each month. Add a 1.5% arrangement fee of £81,000, and the estimated all-in cost is roughly £586,440 — about 10.9% of facility. That excludes valuation, legals, and any extension or step-up costs where applicable.
Related case studies
- 12-unit residential new-build, Camden — Conventional mid-market scheme. Strong area, conservative pricing, fast sales velocity. Exit finance beat the extended senior tail by £78k over the 9-month actual hold.
- 9-unit heavy refurb conversion, Brighton — Slower sales market than modelled. Extended facility twice. Pricing stepped up from 0.82% pm to 0.92% pm for the final 3 months.
- 24-unit BTR scheme, Leeds — Sold the entire block to a single institutional buyer after 5 months. Repaid early with no ERC. Would have been cheaper to stay on senior + block sale direct, but certainty of execution was worth the premium.