Development exit bridging loan on property in Wales

Aspen completes development exit bridging loan using desktop valuation

Aspen Bridging has completed a £150,000 development exit bridging loan on a remote property in Wales using its desktop valuations system.

The finance was required to complete the current project in Llangollen, which has £50,000 of works outstanding, with the remainder being used to improve cashflow to secure the next development project nearby.

However, the current site was not signed off by building control and required rectifying works.

In addition, the warranty was not finalised, and therefore a quick turnaround was needed to ensure the subsequent purchase did not fall through.

The case was introduced by Zara Brindley, director at Top 10 Finance, and was handled from start to finish by underwriter, Saif Khalique.

Aspen issued a fully costed illustration within 15 minutes and a submitted a post-search DIP in one hour. 

Legals and desktop valuations were instructed the next day following authorisation from the client and the broker and undertaking was received the same day.

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

“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,” said Jack Coombs, director at Aspen Bridging.

“Covid 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.

“Given all the circumstances surrounding the deal, this is a pretty unique completion.”

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