A developer has chosen Aspen Bridging’s new bridge-to-let product for a heavy refurbishment project.
The client owns a six-bedroom guest house in Bath which they want to convert into three two-bedroom residential apartments.
Following advice from the introducer they chose the product for heavy refurbishment bridging with a one-year bridge-to-let period to avoid the need for a development exit bridge, while having the flexibility to transfer immediately onto the cheaper bridge-to-let term after finishing works so they can test the market to either refinance or sell.
The £557,500 light development bridge-to-let loan was completed at 80% LTV day 1 plus commitment to fund 100% of works costs, over a 24-month term, with the initial 12-month bridge on a flat rate of 0.75% pm followed by a 12-month bridge-to-let period at 4.49% pa.
Zoe Morgan of South West Business Finance (SWBF) said: “I found dealing with Aspen and the underwriting team for this proposition a pleasure.
“They worked with us to shape the resulting proposal to meet with the client’s requirements, both in providing the level of funds needed for the project and also comfort with the options to exit.
“This satisfied initial concerns raised and we were able to meet client’s expectations. Nothing was too much trouble for Aspen to deal with and I will certainly be working with them again.”