Octane Capital completes complex £5.4m HMO refinance in 7 days
Posted on May 23, 2017 | in Press Releases
‘Productless’ third generation lender, Octane Capital, today announced it has completed a £5.4m bridging loan to an offshore borrower in just seven working days.
The loan, at 70% LTV, was for a complex HMO (house in multiple occupation) refinance in north London to help the client – borrowing through an offshore ownership structure – raise capital for a further purchase.
The borrower, introduced through property finance advisory business, Buchler Barnett Spencer, opted to service the loan and use part of the equity released to fund the difference between the net rental income and interest.
In early May, Octane Capital launched with a ‘third generation’ lending model: it now prices according to risk rather than LTV and structures loans on a highly bespoke basis.
It has also moved away from transactional lending to a partnership-based approach.
Westley Richards, Director, Buchler Barnett Spencer, commented:
“Our decision to finance this project with Octane was validated by the smooth and efficient credit and drawdown process that enabled our client to complete this refinance within a tight timeframe and on very competitive terms.”
Jonathan Samuels, CEO, Octane Capital, added:
“This is the exact type of loan that we had in mind when we launched Octane Capital. We love to be challenged and to find a solution for even the most complex borrowing structures and circumstances, and this one, introduced by our newest recruit, Justin Cooper, ticked both those boxes — and then some. We’ll do simpler loans, of course, but if a loan sounds impossible, that’s when we like to get involved.”
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