Aspen has completed a £3.05 million bridge-to-let facility to support the refinance and development of a 21-bedroom HMO scheme on Iffley Road in Oxford.
The funding package represents 80% LTV on day one and includes an initial advance of £2.05 million to redeem the existing purchase loan and continue works.
A further £1 million is available in staged drawdowns to complete the project.
The development has full planning permission to amalgamate the ground and first floors, with construction already under way. Aspen said plastering and dry-lining works had already been completed.
The borrower is an established HMO investor with a substantial local portfolio and experience delivering similar projects. Aspen has previously funded multiple schemes for the client.
The bridge was agreed at 0.78% per month over 12 months, before moving onto a serviced buy-to-let period at 6.24% a year over two years.
Once the works are completed and the rent roll has stabilised, the borrower plans to refinance the asset onto a longer-term facility.
The case was handled from start to finish by Laura Randall, senior underwriter at Aspen, in line with the lender’s one-person per-case customer service commitment.
Randall says: “This transaction demonstrates our ability to deliver flexible, structured funding solutions for experienced operators executing proven strategies.
“The borrower has a strong track-record of delivering successful HMO conversions in the Oxford market, and this scheme is a continuation of that strategy.”
