Town Foot Rise - £2.2m Development Exit Loan

Momenta Finance is delighted to have completed a development exit facility for five properties in Alnwick, Northumberland. The borrower had previously rented the properties following construction but, following a change in strategy, wished to enter an orderly sales process to sell all the units.

The Property

Our security comprised five executive homes in Alnwick, Northumberland. Alnwick is on the mainline rail route between London and Edinburgh, 34 miles from Newcastle, 32 miles from the Scottish Borders, and less than five miles from the local coast and beaches.

The Borrower

The borrowing entity is a special purpose vehicle (“SPV”) established for this development. The principal of the SPV is an experienced developer with a strong track record in and around Northumberland and a previous career in banking.

The business plan and exit strategy were well considered and supported by achievable assumptions, with the borrower having already sold two units on the development.

The borrower was seeking to refinance quickly, and Momenta was able to underwrite the transaction with support from local valuer Bradley Hall and Glovers Solicitors, acting for Momenta.

The Solution

Momenta Finance provided a £2.272m facility over an eight-month term, reflecting the small number of units remaining to be sold. The day-one facility was below 70% LTV, comfortably within Momenta’s maximum of 75% LTV.

By refinancing, the borrower gained the time needed to exit the development in a timely and orderly manner, while retaining control of the sales process through a competitively structured product.

This transaction demonstrates Momenta’s ability to deliver structured finance solutions that help experienced developers maximise sales value without undue time pressure, supporting a well-managed exit.