A term used to describe the different elements of Debt and Equity, that can make up the totality of a property value. For example; if you take a property that is worth £ 1m. Let’s assume there is a First Charge Loan of 50% LTV (£ 500k) and a Second Charge or Mezzanine Loan of 15% LTV (£ 150k). The total debt is therefore £ 650k or 65% of the property value. In this case, the remaining 35% is the owners original Deposit, and is the Equity value in the property. All 3 elements combined equal 100%, and that is the capital stack.
