Aspen Bridging secures £1.2m bridging facility for Sunderland residential development

Aspen Bridging has completed a £1.225m funding facility for an experienced developer on a near-complete residential scheme in Sunderland, using a combination of its No Valuation and Bridge-to-Let products to deliver multiple outcomes from a single structure.

The funding was secured against a development of eight four-bedroom, four-bathroom new-build townhouses, totalling around 9,000 sq ft, with a final GDV in excess of £1.7m.

With the scheme approaching practical completion, the borrower required £475,000 to redeem the existing lender, £250,000 in further drawdowns to complete outstanding works, and £500,000 to release capital for use on other projects.

Aspen structured the facility at 70% LTV, allowing the properties to be revalued shortly before completion as works progressed, which supported a higher day-one release of funds.

The bridge was completed in under a month and arranged on Aspen’s stepped rate, starting at 0.5% per month over a 12-month term.

An optional Buy-to-Let period has been included, priced at 6.49% per annum over two years, giving the borrower additional flexibility should the exit take longer than anticipated.

The intended exit is the sale of the completed development.

The case was managed end-to-end by underwriter Daniel Tame, in line with Aspen’s one-person-per-case service model.

Jack Coombs, Chief Operating Officer at S&U PLC, Aspen’s parent company, said:

“This transaction demonstrates how our product range can be combined to support developers at a critical stage of a scheme.

By using our No Valuation and Bridge-to-Let products together, we were able to help the borrower refinance, complete the build and release capital within a short timeframe, while also providing flexibility around the exit.”

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