Aspen has completed a £1.225m facility on a near-complete residential scheme in Sunderland, combining its no valuation and bridge-to-let products to deliver multiple outcomes for an experienced developer.
The funding supported a development of eight four-bedroom, four-bathroom new-build townhouses, with the borrower seeking to refinance an existing lender, complete final works and release capital for other projects.
The facility comprised £475,000 to redeem the incumbent lender, £250,000 in drawdowns to finish outstanding works and £500,000 of capital release. The transaction completed in under one month.
The deal was agreed at 70% LTV, with the properties revalued shortly before completion as construction progressed. This enabled a higher day-one release of funds against the assets.
The North East scheme extends to around 9,000 square feet and has a final GDV of more than £1.7m.
The borrower intends to exit through the sale of the entire development, with the optional buy-to-let period included to provide additional flexibility should disposals take longer than anticipated.
The bridge element was structured on Aspen’s stepped rate, starting at 0.5% per month over a 12-month term. This is followed by a buy-to-let period priced at 6.49% per annum over two years.
The case was managed end-to-end by underwriter Daniel Tame under Aspen’s one-person-per-case service model.
Jack Coombs, chief operating officer at S&U PLC, Aspen’s parent company, said: “This transaction highlights the strength of our product design and flexible funding approach, allowing the borrower to redeem their existing lender, complete the development and release capital within a matter of weeks.
“By combining our no valuation and bridge-to-let products we were able to deliver multiple outcomes from a single facility while supporting the developer’s wider pipeline and future sales strategy.”
Earlier this year, Aspen expanded the scope of its bridge-to-let proposition, reducing rates and introducing a combined term of up to five years.
Borrowers can now opt for a bridge or development loan of up to 24 months, followed seamlessly by a buy-to-let facility running for up to three years.
