Term: 6 months
House type: Four flats
Product type: Development Exit
Short-term specialist property lender, Oblix Capital has completed on a bridging loan of £900,000. The funds were used to clear the client’s existing development loan commitment, allowing them more time to sell the newly refurbished properties.
Secured against four newly built flats in South London, the client obtained the Development Exit loan at 75% LTV of the Open Market Value.
Timings were critical to this case with the client facing penalty fees due to insufficient time to clear their existing development loan facility. Oblix Capital were able to offer the client a 6-month term, allowing valuable extra time to sell the refurbished flats.
James O’Boyle, Oblix Capital Business Development Manager said:
“We are really pleased that we were able to assist this client when they were coming to the end of their development finance, delays in this project meant they were faced with hefty penalties and potentially having to sell the properties at a lower value. This is a perfect example of how useful our Development Exit product can be when unexpected events happen during a project.
Development Exit products have become increasingly popular recently and we at Oblix Capital have a strong appetite for assisting clients with these types of deals. Unlike some lenders, we lend against OMV and this has proven to be extremely valuable to our clients.”