12 months required
0.5% per month
Three pristine London apartments were offered as collateral at 33% LTV,
seeking a 12-month bridge for a short term requirement. Timing was vital for the client.
- Three brand new apartments, total value of £9m
- First charge over all properties
- Award-winning development
- No income – interest roll-up
- Assets never tenanted
- £3m bridge finance
- 12 month term
- Properties held in separate SPVs
- Quick timing important
- £3m secured, one term sheet across all SPVs
- 0.5% margin, 12 months
Our client approached us initially to take out finance against one of the three properties we eventually secured lending against. It was quickly apparent that instead of circa 70% LTV against one asset, 33% LTV against three assets would secure better rates.
The assets were high quality and pristine, having never been let out. With no income in any of the SPVs, interest roll-up was required. The client had a strict deadline due to an upcoming life event and so we had to be confident that the lender would draw down in time.
The credit was drawn down over a month ahead of the client's deadline and at a low margin of 0.5% per month, with a reduced 0.1% arrangement fee.