Chat to a team member

Press Releases

Octane Capital steps in with £1m bridge as lender withdraws at 11th hour

Octane Capital Octane Capital
Posted on Jun 06, 2017 | in Press Releases

‘Productless’ lender, Octane Capital, today announced it has completed a £1m bridging loan in just four working days after a competitor declined to offer a facility at the eleventh hour.

The borrower — a client of London-based debt advisory business Mantra Capital — had taken out a bridging loan to acquire two derelict neighbouring Hertfordshire-based properties with the intention of turning them into flats.

But when the initial attempt at planning permission was rejected, the client was unable to secure the development finance required to pay off the bridging loan before it expired. Rather than extend the bridge, the lender called it in leaving the client in a difficult position.

When Mantra Capital was let down with little time to spare by a second lender, Octane Capital was approached and its risk team rapidly looked at the underlying assets, location and borrower.

Octane concluded that, even if planning permission for flats was again rejected, the properties could be refurbished and sold at a comfortable profit. To this end, it provided a £1m bridging facility at 60% LTV.

Octane Capital released the funds within just four working days of the original enquiry by Mantra Capital. To meet the pressing deadline, it worked seamlessly with long-term partners, De Villiers Chartered Surveyors and solicitors Howard Kennedy, to rescue the project for the borrower.

Rickesh Patel, Senior Commercial Relationship Manager, Mantra Capital, said:

“We have known Mark and the team for a number of years so when the lender we had lined up withdrew at the last minute, Octane naturally received the first call. With all their experience, the Octane team are able to look at a loan in a way that many other lenders cannot. Rather than take an application at surface value, they dig below the surface where the level of risk is often far less than it appears, and can take a commercial view accordingly.”

Mark Posniak, Managing Director, Octane Capital, added:

“When we looked under the bonnet, this loan was never in doubt. The borrower was robust and the asset risk minimal. The speed with which we managed to get it over the line, working alongside companies with the pedigree of De Villiers and Howard Kennedy, was particularly satisfying. When deadlines are tight, experience counts and in this case all the companies involved had it by the bucket load.”

More in this section

Octane Capital joins MCI Mortgage Club panel

Sep 02, 2019 | Press Releases

• #3rdGen lender to offer its ‘product-less’ loans to 750 MCI…

Octane Capital
Octane Capital
READ MORE

Octane completes on complex acquisition bridge in 7 days to support development site purchase

Aug 07, 2019 | Press Releases

• Octane Capital provides £617,000 bridging facility to support…

Octane Capital
Octane Capital
READ MORE

Octane Capital provides £4.3m bridging loan which saw 21 valuations instructed

Mar 06, 2019 | Press Releases

Octane Capital has provided a £4.3m bridging loan to fund a £1.2m…

Octane Capital
Octane Capital
READ MORE
Sections
Archive
Twitter
Follow us @octanecapital

7 months, 1 week ago
@AskAmexUK I love my Amex and want to use it even more with @ImagineCurve! Please bring it back @AmexUK @TheFCA… https://t.co/7D0sTD0BD9

7 months, 2 weeks ago
RT @mposniak: First 2 pages of the Bridging Introducer feature on @OctaneCapital below where we talk about our plans for 2019 and… https://t.co/CzvQeUBd2R

7 months, 2 weeks ago
RT @mposniak: Second 2 pages of the Bridging Introducer feature on @OctaneCapital below where we talk about our plans for 2019 an… https://t.co/OtyvK6Ws4z

7 months, 2 weeks ago
RT @mposniak: Lets not forget about what makes @OctaneCapital's #3rdGen engine room tick. Nice little piece in Bridging Introduce… https://t.co/7TzaDzUUbX

7 months, 2 weeks ago
RT @mposniak: Delighted to confirm that the 2nd Annual @OctaneCapital #3rdGen #OctaneCapitalCup2019 will be contested on Wednesda… https://t.co/41FYEKOOJd

7 months, 2 weeks ago
RT @Beth_JFisher: Every other month, @BandCNews magazine will feature one key industry figure sounding out another. For the first iss… https://t.co/ShVUKUm9ub