Alternative Bridging Corporation has provided a £967,000 second charge overdraft facility to an experienced property investor with holdings across London and the Home Counties.
The Alternative Overdraft facility is secured against a £2.4 million residential property in Stanmore at 70% loan-to-value.
The borrower, an existing client completing a fourth transaction with the lender, wanted access to revolving capital for future property acquisitions instead of arranging separate finance whenever an opportunity arose.
Alternative Bridging said the transaction was supported by the borrower’s track record, substantial property holdings and active development pipeline.
The deal was led by Taylor Osunsedo, business development manager at Alternative Bridging Corporation. It allows the borrower to draw funds when required and repay them as capital is recycled from other projects.
The Alternative Overdraft is a revolving facility for property professionals, with interest charged only on the amount drawn. It can be secured by a first charge against commercial or residential property, or a second charge against residential property.
Osunsedo says: “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.
“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.”
