Aspen Bridging has completed a £2.1m bridge-to let loan within three weeks for a developer client nearing the end of their existing development finance deal.
The client sought the funds to complete the finishing touches and sell a newly-built detached six-bedroom house in Twickenham, London for maximum value.
After the case was introduced to the firm by Matthew Archer, director at Tapton Capital, Aspen’s senior underwriter and loans manager Saif Khalique proposed the bridge-to-let product to give the developer extra flexibility, should they encounter any further issues.
The original security was based on two properties in Twickenham — however, as the developer had a fixed low-interest term mortgage on one of the properties, Aspen recommended a revised first-charge loan using its no valuation service on another unencumbered property in Surbiton, South West London to enable a better deal to proceed.
The lender also agreed to use a comfort charge on the original BTL to enable the rental coverage to be sufficient in order to get the customer the funds required.
Despite additional problems caused by postal strikes, Aspen was able to provide the necessary funds in time to meet the client’s deadline.
The deal was completed at 70% LTV over a 24-month term, with the initial 12-month bridging facility agreed at a flat rate of 0.89% per month, followed by a 12-month BTL period at 6.49% per annum.
Matthew said: “Aspen understood the issues and swiftly restructured the loan, using its AVM service and organising rapid security visits to do so.
“It took a commercial approach throughout and both us at Tapton and our client could not be happier with the result.”
