It provides additional funding after previous lender refuses extra finance
Aspen Bridging has saved a developer’s project after the previous lender refused to extend available finance to cover cost overruns brought on by the increasing price of building materials.
The six-bedroom detached house (pictured) in Gerrards Cross, Berkshire, required further funding to complete the refurbishment, which would ultimately have a market value of around £2.5 million.
Having visited the property and met with the developer, Aspen offered a light development bridge of £1.03 million on the first day, with a further drawdown of £300,000 later in the project, ensuring the GDV and LTV would not exceed 70% at any time. Exit will be achieved through sale.
The 12-month bridge was completed on the lender’s flat rate at 0.79% per month, and, in line with the lender’s one-person-per-case, commitment was taken from start-to-finish by senior underwriter Saif Khalique.
Ian Miller-Hawes, head of sales at Aspen Bridging, remarked that in the current cost-of-living crisis, it is imperative that lenders support developers.
“In this case, it was a very straightforward proposition. We do not understand why the existing lender refused extra funds to cover costs outside the client’s control,” Miller-Hawes said.
“Ultimately, the client was very happy with our services, and they have already sent their next project to us to provide funding.”
Read more: Aspen posts record Q1 advances.
Aspen’s 2022 rates and product card sees stepped rates from 0.39% and flat rates from 0.64%. The lender operates a maximum loan size of £10 million net, up to 80% LTV and terms running from six to 24 months.
