Hampshire Trust Bank’s bridging finance team has delivered a £3.2m development exit loan for a York residential scheme.
The loan supported the client’s conversion of a large property in York into 11 luxury apartments. The client initially sought £2.35m to repay development finance and raise capital for their next project.
The case was introduced by Mark Ellis, area business manager of Development Money. Following an up-valuation during the survey process, and the inclusion of a £600k unit that had sold but not yet completed, HTB restructured the facility to offer £3.2m. This allowed £2.95m to repay the development funding, with the remainder released as capital for the client’s next scheme.
HTB said that apartments priced up to £1.7m in a building of this kind posed a niche market risk that in this case might have deterred some lenders. However, HTB assessed local demand and recognised a cohort of downsizers seeking low-maintenance homes without compromising on space or grandeur. The valuer supported this view, noting strong interest and above-asking-price sales.
A delay in the sale completion of the £600k unit meant it had to be included in the loan just days before drawdown. The borrower also requested to annex a parcel of land from the 12-acre site for future development. HTB worked closely with the borrower, Development Money, and the valuer to accommodate both changes swiftly and ensure the revised facility remained aligned with the client’s objectives.
Ellis said: “This was a challenging yet rewarding deal, and HTB’s ability to adapt at every stage made all the difference. Their expertise in bridging finance and their willingness to handle last-minute changes ensured the client’s objectives were met. It was a pleasure working with a team so committed to achieving the best outcome.”
Barry Ireland (pictured), business development manager in HTB’s bridging finance team, added: “This was a complex deal with several moving parts, particularly in the final stages. The nature of the property and the price point meant it needed a lender who could take a view and structure the right solution.
“We worked closely with Mark and the client to respond quickly to changes and make sure the loan remained aligned with the wider objectives. It’s a great example of how we support brokers with speed, flexibility and a genuinely tailored approach to more specialist schemes.”
