Aspen Bridging has rescued a developer’s project from collapse after the previous lender refused to extend available finance to cover cost overruns brought on by the increasing price of building materials.
The six-bedroom detached house in Gerrards Cross, Berkshire required further funding to complete the refurbishment, which would ultimately have a market value of around £2.5m.
Having visited the property and met with the developer, Aspen offered a Light Development bridge of £1.030m on day one, with a further drawdown of £300k later in the project, therefore ensuring the GDV and LTV would not exceed 70% at any time. Exit will be achieved through sale.
The 12-month bridge was completed on the lender’s Flat Rate at 0.79% per month, and in-line with the lender’s one-person-per-case commitment was taken from start-to-finish by Saif Khalique, senior underwriter.
Ian Miller-Hawes, head of sales at Aspen Bridging, said: “In the current cost of living crisis it is imperative that lenders support developers and in this case it was a very straightforward proposition. We do not understand why the existing lender refused extra funds to cover costs outside the client’s control.
“Ultimately the client was very happy with our services and they have already sent their next project to us to provide funding.”