Alternative Bridging Corporation has provided a £967,000 revolving credit facility to an experienced property investor, secured by a second charge against a residential property in Stanmore valued at £2.4 million, at 70% LTV.
The facility, structured as an Alternative Overdraft, gives the borrower access to capital on demand rather than requiring a fresh finance application each time an acquisition opportunity arises. Interest is charged only on the amount drawn, with funds repaid as capital is recycled from other projects.
The borrower is an existing Alternative Bridging client completing their fourth transaction with the lender. Their portfolio spans London and the Home Counties, supported by a substantial equity base and an active development pipeline. That track record was central to the lender’s assessment of the transaction.
Using a second charge allowed Alternative Bridging to provide the revolving facility without affecting the existing first charge arrangement on the Stanmore property. The Alternative Overdraft can be secured by a first charge against commercial or residential property, or a second charge against residential property, making it adaptable to a range of portfolio structures.
The deal was led by Taylor Osunsedo, business development manager at Alternative Bridging Corporation.
“Experienced property investors do not always know where their next opportunity will come from, but when the right deal appears, the ability to act quickly can make a real difference,” said Osunsedo (pictured).
“In this case, the client was not raising funds for one specific purchase. They wanted capital available in advance, so they were not starting a new finance application each time an opportunity came onto their radar. Using a second charge also meant we could provide that access to funds without disturbing the existing first charge.
“For brokers, there’s a wider point here about looking at how active property investors intend to use finance over the next 12 months, rather than focusing only on the deal in front of them. When a client has a strong track record and suitable equity, putting a reusable facility in place can give them far more freedom to act when the next opportunity arises.”
Please visit:
Our Sponsor
