Aspen has provided a £4.1 million bridge-to-let loan for a residential development in Leatherhead, Surrey, with the completed property expected to reach a gross development value exceeding £10 million.
The development is located within the Crown Estate in Leatherhead, where the developer had previously acquired the plot and funded initial construction stages. The main structure had reached near wind and watertight stage before external financing was secured.
Loan structure and drawdown
The lender structured the facility with a £1.2 million day-one advance, enabling the borrower to refinance a £900,000 outlay, with remaining funds allocated to ongoing construction. An additional £2.9 million will be released through staged drawdowns to complete the build.
According to Richard Tweddell, underwriting manager at Aspen, the lender worked with the borrower during the application process to formalise an agreement with the main contractor. This step was designed to clarify cost expectations and timelines.
Aspen priced the bridge element at 0.83% per month over an 18-month term, transitioning into a serviced buy-to-let period at 7.49% per annum for two years, with the loan-to-value starting at 55%.
Property specifications
The completed development will comprise seven bedrooms with en-suite bathrooms, a gym and cinema room with bar, multiple garages, and a swimming pool with sauna and steam room facilities.
Product range updates
The deal follows changes to Aspen’s bridge-to-let loan range introduced earlier this year. The lender reduced rates and extended the combined term to up to five years. Borrowers can now access a bridge or development facility for up to 24 months, followed by a buy-to-let term of up to three years.
Across the updated range, bridging rates start from 0.35% per month, with serviced buy-to-let rates beginning at 6.89% per annum. Maximum loan size reaches £15 million, with loan-to-value ratios extending up to 80%.
The product covers residential, semi-commercial and commercial properties across England and Wales. The structure aims to provide continuity between development and longer-term financing as projects transition from construction to income-generating assets.
The development finance sector has seen increased activity as developers navigate construction costs and changing market conditions across the UK residential sector.
