Aspen utilises desktop valuation to save developer from penalty charges

Aspen has provided a £1.45m development exit bridging loan to a client who needed finance urgently to avoid penalty charges.

The borrower’s existing development finance facility was due to expire, and delays caused by Covid-19 meant that the term refinance would not complete in time — therefore, a quick turnaround was essential, despite businesses being closed over the festive break.

Due to the timing, there was a lack of available surveyors to visit the property, so a desktop valuation was utilised on the three-flat conversion in Hackney, London.

Thanks to this, the lender was able to confirm its offer on Christmas Eve, two days after the application was received.

On return from the holidays, the documents were signed on 5th January, with funds released on 8th January, meaning the entire process was completed in just seven working days.

The £1.45m development exit bridging loan was finalised at 75% LTV at a 0.89% flat rate over eight months.

The case was introduced by Kallem Brooks, associate director and head of the commercial mortgages desk at Bond Finance, and was handled from start to finish by Prabhat Talwar, senior underwriter at Aspen.

Kallem said: “When we presented the deal to Aspen in late December, we didn’t know how fast the lender could complete, considering lockdown and the holiday period. 

“Its desktop approach provided the perfect solution to our client’s urgent need to avoid costly penalty charges on their existing facility.

“Aspen communicated effectively, and we put a strategy and timeline in place to complete within seven working days.

“With no delays in the process, we have a very happy client.”

“We wouldn’t have been able to complete in this timeframe with any other lender.”

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