Aspen completed a £3m bridge-to-let financing deal in under a month for the purchase and renovation of a block of 13 flats in Bath, Somerset.
The property investor requested £2.5m upfront on the £3.1m purchase price, resulting in an 80% loan-to-value (LTV) ratio on day one.
The additional finance would be used for light refurbishment and potentially redeveloping the basement for an extra unit, subject to planning consent.
Despite a last-minute name change of the lead company, the deal was completed within the required timeframe.
Richard Tweddell, senior underwriter at Aspen, took the case from start to finish and proposed the Bridge-To-Let product to offer flexibility in case of any project issues or a change in exit strategy.
The deal featured a 24-month term, with the initial 12-month bridge at a flat rate of 0.89% per month, followed by a 12-month BTL period at 6.99% per annum.
The exit strategy is currently planned through the sale of the flats.
Ian Miller-Hawes, sales director at Aspen Bridging, said: “Our Bridge to Let product is designed for flexibility, empowering borrowers seeking unrushed development exits, heavy to medium works cases or foreign national purchases with the full flexibility to either refinance onto the best BTL rates or sell and realise the profits.
“In this instance it was perfect for the applicant, and to be able to turn the deal around in a month despite the late change in company names highlights just how flexible we can be.”
Aspen’s Bridge-To-Let product is available up to 75% LTV, with bridge rates starting at 0.79% per month and BTL rates at 6.99% per annum.
The product is open to UK and foreign applicants, including first-time buyers, with a maximum loan size of £10m.
Terms run for either 18 months or two years, equally divided between the retained initial bridge period and the serviced BTL.
