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Aspen completes £150k development exit bridge during lockdown

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  • 11/08/2020
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Aspen completes £150k development exit bridge during lockdown
Aspen Bridging provided a £150,000 development exit bridging loan on a remote property in Wales using only its desktop valuations systems.

 

The money was required to complete the project in Llangollen, which has £50,000 of works outstanding.

Funds were also being used to improve cashflow and to secure the next development project nearby.

On top of national lockdown restrictions, the case was complicated as the current site was not signed off by building control and required rectifying works, plus the warranty was not finalised.

A quick turnaround was needed to ensure the subsequent purchase did not fall through.

The loan was completed on the lender’s stepped rate product, with the deal starting at 0.59 per cent per month for the first half of the 12 month term.

Legals and desktop valuations were instructed the day after the decision in principle following authorisation from the client and the broker.

Undertaking was then received same day.

The case was presented to Aspen by Zara Brindley of Top 10 Finance and, in-line with service level agreements, was handled by underwriter, Saif Khalique.

Jack Coombs, director at Aspen Bridging (pictured), said: “This case is testament to our expertise in development exit transactions, and would not have been possible without our desktop valuation system which was cost effective and time efficient in meeting the deadline for the client.

“Covid-19 is still causing disruption to normal practices, especially at that time of instructing the valuation as there had still been lockdown restrictions in Wales making it almost impossible to get a physical inspection.

“Our flexibility for development exit deals enabled the client to complete on their next site purchase even though the final warrantee hadn’t been obtained and there were further delays to the building control sign-off. Given all the circumstances surrounding the deal this is a pretty unique completion.”

 

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