Aspen Bridging has overcome language barriers, international legalities, valuation issues and a tight timeframe to save a Chinese foreign national’s £115k deposit on a £1.15m new build flat in Nine Elms.
The applicant, based in Shanghai, had already paid the deposit and originally planned to acquire the property on buy to let term finance, but the developer served notice and the application could not be completed in time.
Required to pay in just 10 working days, the case was further complicated by the significant oversupply of flats in the Nine Elms regeneration zone and a list of snagging tasks, as well as a five hour time difference with a client who could not speak English.
Following a customer interview and pre-funds release call done by Aspen underwriters in Mandarin, the broker instructed the applicant to use a global law firm with offices in Shanghai and London such that loan documentation could be translated appropriately and conditions of the loan explained.
Aspen’s valuer and valuation audit team then undertook a comprehensive look at values within the regeneration area with a focus on new versus second-hand apartments, arriving at a number which worked for all parties and protecting the lender against any localised value related risks.
A £675k gross loan was agreed at an initial interest rate of 0.47% on a six-month term. Exit will be by way of a move onto buy to let term finance, with the lender providing underwritten terms with approval to enter legal work once the property reached practical completion.
Arthur Cole-Fontayn, senior underwriter at Aspen, said:
“It was our first deal with this broker so we were keen to set the service excellence benchmark.
The borrower was under pressure to complete so we worked quickly to get out formally underwritten terms within our three hour time-based service level agreement. I visited the property 48 hours later with the valuer and took receipt of the valuation of a further 24 hours after the visit.
Once on site I quickly became comfortable with the asset given it was one of the premier flats in the block, superior views and internal spec which compared well to others on the market and in the locality.
We moved fast to meet the deadline and got the case completed on time.“