Aspen Bridging has used its finish and exit product to help a client unable to finish a three-house property development due to limited cashflow and no warranty.
It has lent £228,00 at 0.69% for the course of 10 months. With two properties wind and watertight and the third at foundation level, the lender was onsite within three days of instruction and worked with building control to ensure all work-to-date was agreed.
Jack Coombs (pictured), director at Aspen Bridging said: “This case study clearly demonstrates how our new finish & exit product removes many typical market restrictions that would usually see such applications declined.
“Its flexibility and the professionalism of our team delivered exactly the right result for the client.”
Once the team had established a good understanding of the project and the developer’s plans, they worked with building control to establish all work-to-date was in good order and took the decision not to instruct a building surveyor to reduce upfront costs.
With a retrospective warranty required to ensure the client could refinance out once works were complete, Aspen established the first payment as part of setting up the warranty which will be cleared in full on completion of the loan.
A further complication involved a breach of planning with two windows in incorrect positions. Aspen applied a practical approach and the client submitted a retrospective planning application. It has been agreed that if the submission is declined the situation will be rectified during the term.
Aspen Bridging officially revealed its new Finish & Exit bridge product in early April following a soft-launch period.
Available up to 80% LTV from day one with rates starting at 0.49% per calendar month, the term can run from eight to 12 months up to the lender’s maximum loan sizes of £4m net for portfolios and £2m net on single properties.
The product is available on wind and watertight developments, allowing drawdowns on revisit or building control sign-off, and will progress with no building surveyor required where works are sufficiently advanced as its underwriters will be present at valuation stage.
The product is also available throughout England and Wales with no restrictions on scheme type or works percentages, and is offered to both corporate and individual borrowers.