Bridging loans save development project after collapsed sale
Aspen Bridging has completed two bridging loans on one day for a client, in just 20 and seven days from application, after a collapsed sale threatened a developer’s next largescale project.
Having originally applied for a £430k loan against a £675k three-bedroom end terrace, another £310k was required against a £465k two-bedroom flat on the same development after its sale fell through when the purchaser could not raise the funds in time.
Both unencumbered security properties form part of a large development in Chingford which has seen the full restoration of a Grade II Listed manor house into apartments plus the addition of further buildings.
The new development will similarly involve the renovation of abandoned buildings plus new properties.
Following discussions with Ian Miller-Hawes, Head of Sales and Prabhat Talwar, Senior Underwriter at Aspen, who took the applications from start-to-finish, both loans were completed on the lender’s no valuation product at 70% LTV and 75% LTV respectively.
Loan one was taken on a fixed rate at 0.79% over 12-months, and loan two was taken on the stepped rate at 0.49% over six months. Both will be cleared by sale of assets.
Ian Miller-Hawes, Head of Sales, Aspen Bridging said:
“What was already a fast-moving application took on a new dimension when the developer asked to add a second property to ensure there were no cashflow issues with the purchase of the new land.
We discussed their requirements at length, and it was decided to keep the completions separate so that loan one could operate as originally required, and loan two could be repaid as soon as the developer felt comfortable.
It is this flexibility and transparent advice that makes Aspen a truly dependable bridging lender, and our commitment to speed saves people’s projects.”