Aspen Bridging has completed a £1,225,000 facility for a Sunderland property development consisting of eight four-bedroom townhouses, combining its No Valuation and Bridge-to-Let products to complete the transaction within a month.
The borrower, described as an experienced developer, required £475,000 to repay an existing lender, £250,000 to complete outstanding works, and £500,000 to release capital for other projects. The facility was arranged at 70% loan-to-value, supported by a revaluation conducted shortly before completion.
Development details
The North East development spans 9,000 square feet and was nearing practical completion at the time of financing. The scheme has a projected gross development value exceeding £1.7 million.
The exit strategy involves the sale of the entire development, though the facility includes an optional Buy-to-Let period to allow additional time if sales extend beyond expectations.
Financing structure
The bridge term was structured on Aspen’s Stepped Rate, starting at 0.5% per month over a 12-month term. The subsequent BTL period is set at 6.49% per annum for two years.
Daniel Tame, an underwriter at Aspen, managed the case through the company’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.”
Product expansion
Earlier this year, Aspen expanded its Bridge-to-Let product by reducing rates and offering a combined term of up to five years. Borrowers can access a bridge or development loan of up to 24 months, followed by a BTL period of up to three years.
Rates for associated bridging start at 0.35% per month, followed by a serviced Buy-to-Let period at 6.89% per annum. The maximum facility is £15 million, with LTVs up to 80%. The product can fund residential, semi-commercial, and commercial properties across England and Wales.
The case demonstrates the application of bridging finance for developers requiring multiple funding outcomes from a single facility, particularly in the North East property market where development values are lower than in southern regions.
