Loan type: Bridging Loan | Amount: £223,119 | LTV: 23% | Term: 12 months
Self-build projects require a blend of excitement, ambition, and meticulous planning. Yet, even the most carefully laid plans can encounter unforeseen challenges. In such moments, the ability to swiftly adapt becomes paramount.
In this case study, we delve into how Aria Finance navigated complexities with precision to deliver a bespoke bridging loan solution for a client. We secured the vital funding that enabled the client to continue their self-build journey without delay.
The Client:
The client owned the family home, a £1m unencumbered 3 bed terraced house, in his sole name and was currently in the middle of a self-build project with his partner.
The Situation:
While working to complete the self-build project the client had taken some time away from work. They had run out of funds and work on the self-build project was beginning to slow. The family home was due to go on the market very soon. The client had several large defaults and had missed payments on a credit card, as a result traditional finance option were unavailable to the client.
Our Solution:
To continue the work on their self-build project, the client would require an injection of funds - fast! While the family home was soon to go on the market, waiting for the sale to complete would result in the project stalling. A bridging loan was identified as the most suitable option to prevent delays to the completion of the self-build project.
Our priority was to get the funds to the client as soon as possible. We began working with a lender that was comfortable to undertake an Automated Valuation Model (AVM) due to the low LTV of the loan required, in addition, the lender was able to use internal legals. Both factors sped up the process considerably and saved the client from needing to spend money on a solicitor or a full valuation report.
Benefits & Results:
As a result of working with Aria Finance, an offer was issued within 4 days of the application being received and then completed the same day the clients returned the signed offer letter.
In total this seamless transition was completed in a mere 10 working days. Our strategic intervention not only secured vital financial resources but also safeguarded the client's self-build timeline.
