A £1.9m bridging finance deal has completed on a two-bedroom apartment overlooking Berkeley Square in Mayfair, highlighting the legal and underwriting complexities involved in overseas corporate property ownership structures.
Specialist bridging lender Aspen provided the Bridge To Let facility for the third-floor apartment, which is owned through a Singapore corporate structure. The borrower required funds to redeem an existing £1.5m facility whilst releasing additional capital for business purposes.
Cross-border coordination
The transaction required coordination between solicitors in both the UK and Singapore to navigate the corporate structure and associated legal requirements, including document provision and signatory execution via international notaries.
Aspen conducted an in-house property valuation on a Saturday to expedite the process, using its No Valuation product to meet the client’s timescales. The bridge was finalised on a flat rate of 0.74% per month over eight months.
The facility includes an option to transition onto a serviced buy-to-let period at 6.99% per annum over two years, using the same facility documentation. This structure reflects broader trends in UK housing finance, where lenders are adapting products to meet diverse borrower requirements.
International investor activity
Richard Tweddell, underwriting manager at Aspen, said: “Trophy assets like this Berkeley Square apartment continue to attract international investors, but transactions involving overseas corporate structures often require careful coordination between lenders, solicitors and advisers across multiple jurisdictions.”
The lender’s Bridge To Let product offers loans of up to 24 months, followed by a buy-to-let period of up to three years. Flat rates start at 0.69% and stepped rates from 0.35%, with a serviced buy-to-let period at 6.89% per annum. The maximum loan size is £15m, with loan-to-value ratios of up to 80%.
The product supports residential, semi-commercial and commercial projects for UK and foreign nationals on properties across England and Wales. The transaction comes as the buy-to-let sector faces regulatory changes affecting landlords and investors.
Conclusion
The completion of this transaction demonstrates the ongoing demand from international investors for prime central London property, whilst illustrating the additional legal and administrative requirements involved in cross-border ownership structures. The use of corporate vehicles and international notaries adds time and complexity to financing arrangements compared to standard domestic transactions.
