A £1.9 million bridging finance deal in Mayfair has exposed the intricate complexities involved in overseas corporate property ownership structures, requiring extensive collaboration between legal professionals across borders. The two-bedroom apartment overlooking Berkeley Square was held through a Singaporean corporate entity, necessitating meticulous coordination to meet the client's demanding timescales.
The borrower sought funds to repay an existing £1.5 million facility and release capital for business purposes, prompting Aspen to navigate the complex corporate structure and associated legal requirements, including document provision and international notarisation of signatures. This level of complexity underscores the additional layers involved compared to domestic transactions.
Aspen expedited the process by conducting an in-house property valuation on a Saturday using its 'No Valuation' product. The bridging loan was finalised with a flat rate of 0.74% per month over eight months, including an option to transition to a serviced buy-to-let arrangement at 6.99% per annum over two years.
Richard Tweddell, underwriting manager at Aspen, noted the ongoing appeal of prime central London properties for international investors and highlighted the need for meticulous coordination in transactions involving overseas corporate structures. This deal serves as a clear illustration of the demand from international investors for 'trophy assets' in the capital, while also underscoring the increased legal demands that accompany cross-border ownership models.
The lender's 'Bridge To Let' product facilitated this transaction by offering loans for up to 24 months, followed by a buy-to-let period of up to three years. These products cater to both UK and foreign nationals for residential, semi-commercial, and commercial projects across England and Wales, against the backdrop of evolving regulatory changes impacting landlords and investors in the broader buy-to-let sector.