Aspen Bridging has successfully completed a complex £2.2m refurbishment loan for a developer who used two luxury London apartments as security to acquire and develop a high-end property in Cambridge.
The gross loan of £1.6m, equivalent to 75% LTV, fully funded the purchase of the five-bedroom detached house and provided additional funds for immediate work commencement, including the addition of 1,000 square feet of new living space.
A further £0.6m will be made available as the project progresses, with the end GDV estimated at £3.1m.
The security properties included luxury London apartments in Union Square and Dollar Bay developments, the second being used to allow the lender to increase the LTV it could initially offer.
The latter was used to enable the lender to increase the LTV initially offered. Saif Khalique, Aspen’s underwriting Manager, handled the deal from start to finish, concluding it on the lender’s Stepped Rate, which will begin at 0.59% per month with a 12-month loan agreement.
The exit strategy involves selling the properties upon completion. The broker said: “The purchase of the high-value property in Cambridge was made possible by Aspen through their clear expertise in this sector.
“Having dealt with Aspen a few years ago, I knew I would receive a DIP quickly and they would achieve a short turnaround for a high-net-worth client.”
The broker also commended Khalique’s hands-on approach, adding: “The case was also complex due to some of the assets held and several changes were needed last minute to keep the deal on track, but Saif provided an excellent hands-on approach which proved vital to taking the deal through to completion. I would recommend Aspen without a question.”
Aspen’s rates and product card feature Stepped Rates starting from 0.49% and Flat Rates from 0.84%.
The lender offers a maximum loan size of £10m net, up to 75% LTV, and terms ranging from six to 24 months.
