An experienced property developer has secured a £1.8 million bridge-to-let facility from Aspen to provide maximum flexibility across sales and long-term rental exits on a Surrey scheme.
The facility, agreed at 80% LTV, supported the refinancing of an existing development loan that was approaching term end.
The scheme comprises four newbuild, semi-detached, three-bedroom houses in Coulsdon, within the Surrey Downs, with works largely complete.
At the point of refinance, the development still required building control sign-off, light snagging and connection to the water supply to bring around 5,000 sqft of works to completion. These remaining items will be finalised during the bridging period.
The developer, a returning Aspen customer who has previously completed and redeemed a large development exit, expects to sell half of the completed units. Agents have already registered strong demand.
The remaining properties will be retained and transferred onto the buy-to-let period of the facility, adding to the developer’s existing rental portfolio.
The bridge was agreed at a flat rate of 0.83% per month over a nine-month term, followed by a two-year serviced buy-to-let period at 6.74% per annum.
The case was overseen from start to finish by underwriting manager Richard Tweddell, operating under Aspen’s one-person-per-case service model.
Tweddell said: “This is a quality developer, with whom we already have an excellent relationship, who wanted maximum flexibility.
“The structure enables a swift refinance and completion of works typical of a standard bridge, alongside additional time to allow for a considered sales strategy or tenanting to achieve a stabilised rent roll.
“Ultimately this is why our Bridge to Let product has won multiple awards, because it gives developers the flexibility they need to maximise each developments’ financial potential.”
Aspen’s Bridge to Let proposition provides a three-year hybrid structure, combining a nine- or 12-month bridge with a one- or two-year buy-to-let term. The facility is fully underwritten upfront using a single facility letter and valuation.
