The deal was concluded within three weeks
Specialist lender Aspen Bridging has completed a £2.25 million loan for an existing client after the developer’s last-minute change of plans on a Surrey project required a sales exit bridge.
Initially, the enquiry was a £6 million conversion loan on which Aspen issued a competitive full offer, but the developer then decided to sell the property and focus on its existing international projects.
The developer had previously acquired and obtained planning permission for a four-storey Edwardian manor house built in 1874 and sitting on 1.58 acres of matures gardens in Englefield Green, Surrey, with the intention to develop.
However, with other international projects ongoing, the client decided to sell the UK project to another developer. Previously used as offices, the property could be converted into an eight-unit scheme comprising of six flats and two adjoining houses with a gross development value £10.8 million, according to planning approval.
After the change, Aspen fully re-underwrote the deal and liaised with planners directly to allow the refinance deal to complete prior to the decision notice being published, following direct confirmation that committee had given approval.
The deal was concluded within three weeks at 65% loan-to-value (LTV), based on current market value with planning.
“The fact that we had a pre-existing relationship with the client, they spoke to us about their situation, and we, in turn, completely revised our loan from a redevelopment to a sales facility shows the pragmatic and cooperative approach we take when dealing with borrowers and brokers alike,” said Jack Coombs (pictured), director at Aspen Bridging.
“Our underwriting manager, Saif Khalique, took a common-sense overview of the deal which enabled the client to change their investment strategy, something highly valuable in what is a constantly changing macro-economic environment.”
Aspen’s rates and product card sees stepped rates from 0.49% and flat rates from 0.84%. It operates a maximum loan size of £10 million net, up to 75% LTV and with terms running from six to 24 months. The lender launched two products last year, development exit and refurbishment and bridge-to-let.
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