A 21-bedroom house in multiple occupation (HMO) scheme on Iffley Road in Oxford has secured £3.05 million in bridge-to-let financing from specialist lender Aspen.
The funding package, structured at 80% loan-to-value on day one, includes an initial advance of £2.05 million to refinance the existing purchase loan and continue construction works. A further £1 million is available in staged drawdowns to complete the project.
Development progress
The scheme has received planning permission to amalgamate the ground and first floors of the property. Plastering and dry-lining works have been completed, with the development now moving towards stabilising the rent roll ahead of a planned refinance onto a longer-term facility.
The borrower operates a portfolio of HMO properties in Oxford and has previously completed similar conversions in the local market. Aspen has provided funding for multiple schemes for the client.
Finance structure
The bridge facility was arranged at a monthly rate of 0.78% over 12 months, transitioning to a serviced buy-to-let period at 6.24% per annum over two years. Laura Randall, senior underwriter at Aspen, managed the transaction under the lender’s one-person-per-case service model.
The Oxford deal comes as private tenants spend 36% of income on rent, highlighting continued demand in the rental sector. However, the broader market faces challenges, with 44% of UK homes listed for sale failing to find buyers.
The transaction reflects ongoing investor interest in HMO conversions in university cities, where demand for multi-occupancy housing remains consistent.
