Aspen has announced that it has enabled an experienced developer to avoid unnecessary default interest on an existing loan and secured extra time to obtain Building Control and sales thanks to a £2.1m, 28-day No Valuation bridge.
The project involves the build of six high-spec one, two and three bedroom apartments in Pinner in the London borough of Harrow with a total value of £2.8m, equivalent to 74% LTV.
By moving quickly, the lender ensured the original development loan was redeemed prior to any charges being administered. The deal was completed on Aspen’s Flat Rate at 0.79% over 10 months.
Exit will be achieved through the sale of all six units, with the deal benefiting from two agreed sales at a joint price of £1.1m, which will proceed immediately once Building Control sign-off is received.
No Valuation is a unique product which enables genuinely urgent transactions at up to 75% LTV, which can be completed in under 10 working days if the application requires. Flat rates start at 0.79% per month, with Stepped Rates starting from an initial 0.45% per month.
Applications are welcome up to £3m net with the product open to UK and overseas developers and investors for projects and capital raising on properties in England and Wales.
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.
Richard said: “We spoke to the broker and developer and took a commercial view on the status of Building Control sign-off, which will be realised in the not-too-distant future.
“Once the situation was understood, we moved quickly to ensure the existing development loan was redeemed before any charges were realised and agreed a 10-month term to give ample time to complete the sales and achieve maximum profit from the project.”
