Aspen uses desktop valuation to save developer from significant penalty charges
18 January 2021
Aspen’s desktop valuations approach has saved a developer from significant penalty charges, with the lender able to confirm their £1.45m offer on Christmas Eve having only received the application on December 22nd.
The applicant’s existing development finance facility was due to expire and delays caused by Covid-19 meant the term refinance would not complete in time, so 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 to ensure the offer was delivered before Christmas.
On return from the holiday the documents were signed on January 5th with funds released on January 8th, meaning the entire process was completed in just seven working days.
The £1.45m development exit bridge was finalised at 75% LTV at 0.89% flat rate over eight months.
The case was handled from start-to-finish by Senior Underwriter, Prabhat Talwar having been introduced by Kallem Brooks, Associate Director and Head of Commercial Mortgages Desk at Bond Finance. He 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. Their 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.”
Aspen Bridging’s rate card has a maximum LTV to 75%, which can be realised through both physical and desktop valuations, and a top loan amount of £5m net.
Through its Time-Based Service Excellence Targets the lender aims to take the majority of applications from enquiry to completion in just three to 10 days.
