Aspen has completed a £2.1 million finish and exit facility to refinance and complete a mixed-use development in Doncaster.
The bridge-to-let loan was completed in under two weeks, with an initial advance of £1.85 million and a further £250,000 available in arrears to fund outstanding works.
The facility is secured against a former public house being converted into three ground-floor commercial units with two flats above, together with four newly completed detached four-bedroom houses on the same site.
One of the commercial units has been let to a major UK supermarket chain, providing rental income for the scheme.
Aspen recommended its no valuation product to meet the completion timetable, despite the mixed-use nature of the development and a loan-to-value ratio of 72%.
The 12-month bridge was agreed at a flat rate of 0.79% a month. The borrower can then use the same facility documentation to move to a serviced buy-to-let period at 6.94% a year for a further 12 months.
The proposed exit involves selling the four completed houses, while the developer seeks tenants for the apartments and the remaining commercial units.
Laura Randall, senior underwriter at Aspen, managed the application from start to finish under the lender’s one-person-per-case customer service model.
Randall says: “The transaction demonstrates how we can quickly structure unique funding solutions, even on complex mixed-use developments which require flexible underwriting, phased exits and an understanding of multiple asset classes.
“By combining funding with retained works and a Bridge-to-Let strategy, the facility allows the client to complete the project without the pressure of an immediate disposal while maximising value across the development.”
Aspen’s bridge-to-let product combines bridging or development finance of up to 24 months with a buy-to-let term of up to three years. It is available for residential, semi-commercial and commercial projects in England and Wales, including applications from UK and foreign nationals.
Flat rates start at 0.69% a month and stepped rates at 0.35% a month, followed by a serviced buy-to-let period starting at 6.89% a year. The maximum loan is £15 million, with loan-to-value ratios of up to 80%.
