0203 827 7697
enquire now
0203 827 7697
enquire now
Home > Post > Clearwell Capital provides a mezzanine loan to finish West Sussex development.

Clearwell Capital provides a mezzanine loan to finish West Sussex development.

Clearwell Capital recently completed a £615K mezzanine loan to fund the remaining construction costs for a residential development of 15 houses in West Sussex.

Starting in early 2020, the development experienced delays caused by the Covid-19 pandemic and the consequential effects on national and international supply chains. In addition to these delays, building and labour costs increased significantly between 2020 and 2022, rising inflation has also led to an increase in borrowing costs with the Bank of England Base Rate rising from 0.10% p.a to 2.25% p.a in the same period.

These factors created a perfect storm leaving the borrower with a significant shortfall in the budget partway through the construction process, a situation that is becoming all too common given the current inflationary environment.

Clearwell Capital was able to deliver a second charge loan providing the funds required to complete the development and delivering certainty to both the borrower and senior lender. Whilst lending to developments with a history of cost overruns is not always straightforward, Clearwell was able to efficiently ascertain that the borrower was an experienced, professional developer and that the delays and cost increases were largely caused by circumstances outside of their control.

Since the loan completion in October, a number of houses on the development have sold with construction on the remaining units due to complete by January 2023.

Get in touch with one of our experts to find out how we can help you to secure development finance for your next project. We are industry experts specialised in the development finance sector and are happy to help however we can.

Need to finance your next development?

Clearwell have a dedicated team of industry professionals on hand to discuss your funding requirements.

Contact us today to see how Clearwell can fund your next development.


We will reply to you as soon as we possibly can, normally within the same working day. If you have any other questions what so ever, please don't hesitate to call us using the number below.

Further information about how we use your personal information can be found in our Privacy Policy.


© 2024 Clearwell Capital Group Ltd.
66 Newman Street
Company Number 07334412
All rights reserved
Stay up to date
This website is for use by property professionals and introducers only. Clearwell Capital Group Ltd and its subsidiaries are not regulated by the Financial Conduct Authority. Your property may be at risk if you do not keep up repayments on any loan secured against it.