Aylesbury has seen a significant local property finance deal after a specialist lender supplied a £2,120,000 finish-and-exit bridging facility to an experienced developer working on a three-unit luxury residential scheme.
Refinance and completion funds to protect sale values
The package was structured so that £2,065,000 repaid the developer’s existing facility, while a further £55,000 was provided in arrears to complete outstanding on-site works. The development comprises three new-build four-bedroom houses. One unit is already sold subject to contract; the lender took security over the two remaining properties, which are being marketed through a local agent.
- Facility size: £2,120,000
- Repayment of existing finance: £2,065,000
- Available for works (in arrears): £55,000
- Deal structure: 80% loan-to-value (LTV)
- Term and pricing: 10 months at 0.85% per month
The two remaining houses carry a combined market value of about £3.125m and are substantial properties, with internal areas of approximately 4,630 sq ft and 2,570 sq ft respectively. They are described as having multiple reception rooms, games rooms and large gardens.
Security and exit plans
To improve terms, the lender also took an equitable charge over an additional property owned by the borrower. The bridging facility is designed to be repaid on exit, which in this case is intended to be the sale of the two remaining units.
| Item | Figure |
|---|---|
| Facility amount | £2,120,000 |
| Used to repay existing finance | £2,065,000 |
| Available for works (in arrears) | £55,000 |
| Combined market value (two units) | Circa £3.125m |
| Deal LTV | 80% |
| Term and rate | 10 months at 0.85% per month |
The lender finalised the case using its "No Valuation" product, which removes the requirement for a formal valuation at application, and the matter was handled from start to finish by a senior underwriter under a one-person-per-case service model.
“In a subdued market, it can pay for developers to take the time to complete works on site and hold out for higher sales values later, and a well-constructed bridge can provide exactly that kind of breathing space.”
The underwriter added that the no-valuation product is designed to provide developers flexibility to allow projects to achieve the best possible returns.
Local implications
For Aylesbury this transaction highlights two connected trends. First, there remains appetite among specialist lenders to support residential development in the town where projects can show near-term exit prospects. Second, it illustrates how developers are managing cashflow and timing in a housing market described here as subdued: rather than pushing properties to market at lower values, the borrower has taken finance that buys time to finish works and aim for stronger prices.
While this deal covers just three homes, the approach is likely to be watched by other small and medium-sized builders in Buckinghamshire as they weigh whether to sell now or wait for better conditions. For local residents and potential buyers, the completion of sizeable new homes with substantial gardens will contribute to the high-end segment of Aylesbury’s housing market, but is unlikely to affect more general affordability pressures across the town.
From a planning and council-tax perspective, three large new four-bedroom houses will bring additional council tax revenue and add to local housing stock aimed at higher-value buyers. The exact timetable for completion and sale will determine when those effects are realised.
This report is based on information supplied by the lender and materials provided at the time the facility was granted.
