Octane refinances development facility with £790,500 sales bridging loan

Octane Capital has completed a £790,500 sales bridge to refinance an existing development facility secured against a newly completed home in Broxbourne, Hertfordshire.

The deal, introduced by Advocate Finance, saw Octane refinance the existing development debt with Magnet Capital, providing the borrowers with a 12-month facility and additional time to achieve the right sale for the completed property.

The security is a newly built five-bedroom bungalow on the outskirts of Broxbourne, currently being marketed by Savills with an asking price of £1.385m.

Octane provided a net day-one advance of £790,500 to refinance the existing development facility.

The property was independently valued at £1.2m, with Octane’s asset management team and the valuer both comfortable with its liquidity and the level of demand for comparable homes in the local market.

The transaction provided the borrowers with a flexible exit from their development finance, allowing them the time to market the completed property appropriately.

Henry Barley, senior property finance adviser at Advocate Finance, commented: “It was a great experience working with Octane on this transaction.

“Lee Warne, our BDM (pictured above), and Andrew Becker, the underwriter, were particularly instrumental in making the entire transaction seamless.

“Not only was the service excellent, but the product was also very competitively priced and gives the client the additional time they need to sell the property, helping to ensure a successful outcome for the development.

“We look forward to working with Octane again in the future.”

Lee added: “This is exactly where a well-structured sales bridge can make a real difference.

“The borrowers had completed a fantastic development and needed the time and flexibility to achieve the right sale, rather than being constrained by the maturity of their existing development facility.

“Working closely with Henry and the team at Advocate Finance, we were able to quickly understand what was needed and structure a competitive solution that gave the clients the breathing space to market the property properly.”