Property Development Finance Senior Debt and Mezzanine

Funding Every Stage of Your Development, from Land to Exit

Securing the right capital structure is one of the most consequential decisions a property developer makes. Too little leverage constrains what is achievable. Too expensive a structure erodes the margin that justifies the project in the first place. At Amica Capital, we provide both senior debt and mezzanine development finance for residential, mixed-use and commercial development schemes across England and Wales — structured to maximise the efficiency of your capital and the viability of your project.

Whether you are a developer seeking property development finance in the UK for a ground-up residential scheme, or an experienced operator looking to stretch your equity further with junior development finance alongside an existing senior facility, Amica Capital offers the expertise and flexibility to structure a solution that genuinely works.

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Understanding the Development Finance Capital Stack

Development finance is rarely simple. Most projects require a layered approach to funding, and understanding how the different components of the capital stack interact is fundamental to structuring a successful scheme.

Senior Debt sits at the base of the capital structure and represents the largest element of the funding package. Senior debt property development loans are secured against the property and carry first charge security. They typically fund the majority of both land costs and construction expenditure, released in staged drawdowns aligned to build progress. Senior lenders carry the lowest risk in the structure and, accordingly, offer the most competitive rates.

Mezzanine Finance — also referred to as junior development finance — sits above senior debt in the capital stack and below the developer’s equity. Mezzanine development finance fills the gap between what a senior lender will fund and the total project cost, enabling developers to reduce the amount of equity they need to deploy or to stretch a fixed equity pot across more projects simultaneously. Junior lenders carry more risk than senior lenders and charge accordingly, but the ability to deploy less equity can substantially improve a developer’s return on equity when a project performs as expected.

At Amica Capital, we are experienced in providing both components, and in working alongside other lenders to complete capital structures that are coherent, efficient and deliverable.

Senior Development Finance

Our senior development loans are available for ground-up residential schemes, conversion projects, and mixed-use developments across England and Wales. We fund both land acquisition costs and construction expenditure, with funding released in stages against independently monitored build progress.

Available for new-build residential, conversion and mixed-use schemes
Day-one land LTVs of up to 75%
LTGDV (loan to gross development value) of up to 65%
Staged drawdown structures aligned to construction milestones
Independent monitoring surveyor appointed throughout the build
Experienced credit team with hands-on development backgrounds
Exits via sale or refinance to a term lender
Development exit finance available to extend the runway ahead of sales completion
Lending in England and Wales

We take a holistic view of each scheme — assessing the developer’s track record, the quality of the build programme and the credibility of the GDV appraisal — rather than applying formulaic criteria that fail to reflect the reality of the market.

Mezzanine Development Finance (Junior Debt)

For developers who have secured or are negotiating a senior development facility but require additional high-leverage development finance to complete the capital stack, Amica Capital can provide mezzanine or junior development finance to bridge the gap.

Mezzanine development finance is a powerful tool for experienced property developer finance clients who wish to maximise the return on their equity by reducing the amount tied up in any one project. It enables developers to move faster, take on more schemes in parallel and scale their activity without a proportional increase in equity requirement.

Positioned behind senior debt in the capital structure
Used to reduce developer equity contribution to the scheme
Assessed on LTGDV and overall project viability
Available alongside third-party senior lenders or in conjunction with Amica Capital's own senior facility
Suited to residential development funding in the UK and commercial development finance
Priced to reflect the elevated risk position within the capital stack
Exit linked to the overall senior facility repayment — typically on sale or refinance

Our team has direct experience structuring and executing mezzanine positions across a range of development types and deal sizes. We understand what makes a junior position workable and we assess each request with the same rigour we apply to our senior lending.

Development Exit Finance

Development exit finance provides a solution — refinancing the senior development loan into a more competitively priced exit facility that provides the breathing space to complete sales without the pressure of an expiring facility.

Amica Capital provides development exit finance uk borrowers can rely on — structured quickly, priced fairly and managed through to full repayment.

What Types of Development Do We Fund?

We lend across a range of residential and commercial development finance contexts, including:

Ground up development finance for new-build residential schemes of any scale
Permitted development conversions — office to residential, commercial to residential
Residential apartment developments, townhouse schemes and mixed tenure projects
Mixed-use developments combining residential and commercial elements
Light commercial and industrial development alongside residential schemes
Schemes requiring pre-application planning, subject to credible planning prospects

We assess each project on its individual merits. The asset class, location and scale of the scheme are all considered, but our starting point is always the developer’s experience, the credibility of the appraisal and the quality of the exit strategy.

Who We Lend To

We work with residential developers of all scales — from operators completing their first significant scheme to established businesses managing multiple concurrent projects with substantial GDVs. What our borrowers share is a structured approach to development, a realistic understanding of their scheme’s costs and revenues, and a credible plan to redeem the facility. We also welcome enquiries from brokers and introducers acting on behalf of property developer finance clients, and we maintain close and collaborative relationships with the intermediaries who support us.

Criterion	Senior Debt	Mezzanine / Junior
Day-one land LTV	Up to 75%	Considered behind the Senior
LTGDV	Up to 65%	Up to 75% combined
Minimum loan	£100,000	£100,000
Loan term	12–24 months	Aligned to senior
Geography	England & Wales	England & Wales

Frequently Asked Questions

Can you provide both senior and mezzanine as a single facility?

Yes. In appropriate circumstances, we can structure and fund both elements ourselves, providing a single, integrated development finance facility that covers the full funding requirement from land through to practical completion.

Do you lend on sites without planning permission?

We can consider pre-planning or pre-application positions where there is a credible and well-supported planning case. We assess the planning history of the site, the applicant’s planning track record and the level of professional advice in place.

What is required for a development finance application?

At the initial enquiry stage, a development appraisal, site address, planning status, construction programme outline and borrower background are sufficient for us to provide an initial view. We will specify precise documentation requirements at the formal application stage.

Talk to Our Team Today

If you are seeking property development finance in the UK — whether senior debt, mezzanine or a blended structure — contact Amica Capital for an initial consultation and indicative terms.