The government like many builders and property developers is keen to get Britain building again and has identified a number of large development sites that have stalled simply because of a lack of suitable speculative property development funding. The government is looking to provide some of this much needed funding although the details have not been fully released. The funding shortage will be either in the form of primary funding the usually standard type of development funding currently available on the majority of site at around 55-65% of the loan to value. The second and less secure type is mezzanine funding this is a secondary and more complex type of development funding. It sits on top of the primary development funding and tops up the short fall usually taking care of the percentage difference between the maximum loan to value and a shortfall on the primary development. It is sometimes used to take care of the cash gap between paying the main contractors JCT stage valuations and the sales of the properties. Mezzanine funding often makes the difference between a development taking place and simply not being built out. However this type of development funding is considered risky for the investor as well as being an expensive solution for the site developer. The typical charges are between 25-40% of the investment required and this is usually the first monies to be realised after the primary development funding has been repaid from the sales of the properties. The developer who borrows the mezzanine funding usually also picks up all the soft costs like legal contracts and the mezzanine funder may ask for a directorship or other control of a SPV or special purpose vehicle or limited company used to run the development. It can also be beneficial to the developer because often mezzanine funder will have extensive property development experience and be able to give advice on contractors and with build specifications and off plan sales.