Octopus Property provides £5 million bridge-to-let facility for completed Harrow development
Specialist property lender Octopus Property, part of Octopus Group, has provided a £5 million bridge-to-let loan, allowing a client to restructure the ownership of a development asset following its completion.
The 12-month loan, secured at 64% LTV, has allowed the two developers, who wanted to split the 73-apartment scheme equally, to exit their development finance facility and tidy up the title, before their high street lender could provide them with a term loan.
Octopus Property was the first specialist lender to launch a bridge-to-let product in 2013, which allows borrowers to make a seamless exit from a development facility on to longer-term financing. The hybrid product, which sees customers benefit from a term interest rate but with the flexibility afforded by no exit fee or the worry of Early Repayment Charges, is increasingly popular as property professionals look to different ways of structuring development projects.
Brightstar Mortgages, with whom Octopus Property has a strong working relationship, acted as broker.
D’mitri Zaprzala, Head of Sales at Octopus Property, commented:
“This is a great example of an Octopus Property product providing a client with a competitive and much-needed facility that a traditional bank would be unlikely to provide. Our experienced team was able to unlock a seemingly complex structure and allow both developers to move on to a term facility and start realising value from the development.”
For journalists in their professional capacity only. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. Issued by Octopus Property. Octopus Property is the trading name of Bridgeco Ltd (Reg No 6629989), Fern Trading Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Octopus Property Lending Ltd (Reg No 7531926) and Octopus Co-Lend Ltd (Reg No 8913299), Registered Office: 33 Holborn, London EC1N 2HT, registered in England and Wales and Dragonfly Finance S.ar.l. (Reg No B189290) Registered Office: Parc d’Activité Syrdall, 6 Rue Gabriel Lippmann, L-5365, Munsbach, Luxembourg registered in Luxembourg. Octopus Property Lending Ltd and Octopus Co-Lend Ltd are authorised and regulated by the Financial Conduct Authority. Issued April 2018.