Aspen Bridging has quickly facilitated a £700,000 development exit loan on a multi-unit project in Bedford, when the previous finance agreement and right of way issues threatened to derail the build.
Consisting of an initial payment of £530,000 and a further £170,000 in drawdowns, the lender took security over just one five-bedroom executive detached home with the development money being used to complete all four houses onsite.
Prior to completion a right of way problem was identified relating to site access, and the lender’s solicitor immediately acted to resolve the issue by taking a charge over the related access land to ensure the funds could be released on the correct day.
With a gross-development-value (GDV) of £1,200,000, the deal represents 66% of current loan-to-value (LTV) and 62% GDV LTV.
The deal was completed on Aspen’s Flat Rate at 0.87% over 12 months while exit will be achieved through sale of the property.
In line with Aspen’s one-person-per-case customer service philosophy the deal was taken from start-to-finish by underwriting manager, Richard Tweddell.
Tweddell said: “The security property was nearing completion so the case itself initially seemed pretty straightforward, but of course the right of way issue and allowing extra funds to work on additional units added extra layers of complexity which we were well-equipped to deal with.
“As always we listened to the borrower to truly understand their circumstances.
“The fact they have returned with an application for a separate deal tells you everything you need to know about how highly they rate our first-class service.”
