Lenders fund housing, land, and leisure projects in latest £29 million round
Alternative lenders continue to expand their reach across diverse property sectors, with recent transactions demonstrating appetite for social housing, strategic land portfolios, and leisure assets. Three significant deals totalling over £29 million highlight the sector’s growing sophistication and inclination to support specialist borrowers.
LHV Bank enters social housing market
LHV Bank has completed its first direct social housing loan, providing a five-year fixed-rate buy-to-let facility to refinance two residential properties in Merseyside. The properties, located in Wallasey and Birkenhead, were acquired and refurbished by Vital Homes, a property development group established in 2022 by co-founders James Levy and Elena Pashevkina.
The borrower focuses on housing vulnerable tenant groups including prison leavers, domestic abuse survivors and people with disabilities. Within its first year, Vital Homes built a portfolio worth £6.5 million, with properties refurbished to high standards and leased to local authorities or charity partners.
The LHV Bank facility refinanced bridging loans used to acquire and convert two houses in multiple occupation, both now under long-term leases to a registered charity. The transaction moved from credit approval to drawdown in just 31 calendar days, helping the client avoid additional bridging interest.
“We were impressed by the impact Vital Homes is making through its partnerships with local authorities and charities. These are exactly the sorts of deals we want to support,” said Edwin Yamoah, lending director at LHV Bank.
HTB Backs £20 million+ strategic land portfolio
Hampshire Trust Bank has completed a £20 million+ development finance facility to refinance a substantial strategic land portfolio for a UK-based investor. The committed term facility is secured against development land parcels across the South East and Midlands, with planning consents in place for future home delivery.
The borrower will use the funding to support phased sales of consented sites to UK housebuilders and its own housebuilding arm. HTB accommodated a multi-entity ownership structure and geographically diverse portfolio, completing the facility within weeks of initial discussions.
“This was a highly structured facility that needed to reflect both the composite nature of the portfolio and the needs of an experienced land investor,” said Tim Mycock, lending director with HTB’s development finance team.
Hilco completes £4.5 million holiday park loan
Hilco Real Estate Finance has completed a £4.5 million, 24-month bridging loan secured on a 130-acre Suffolk holiday park. Stonham Barns (pictured), near Ipswich, features more than 400 lodge, static caravan and touring caravan pitches, plus facilities including a retail village, golf course, theatre and fishing lakes.
The loan enabled the borrower to repay multiple existing debt facilities and optimise the business’s capital structure. Valuations were undertaken by Christie & Co, with legal due diligence provided by Lawrence Stephens.
“At a time when both traditional and alternative lenders are retreating from this niche market, HREF was able to leverage the deep expertise of our team to quickly extend a credit facility,” said Brad Altberger, HREF CEO.
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