Loan type: Commercial Mortgage | Loan value: £2,025,000 (Net) | LTV: 71% | Term: 5 years
At Aria Finance, we pride ourselves on our ability to navigate complex financial situations and deliver results that align with our clients' strategic goals. This case study showcases how we helped an experienced property developer overcome significant challenges to acquire a modern, high-quality, office block, demonstrating our commitment to client success and the strength of our financial expertise.
The Client:
The client is a professional property investor with a large portfolio of properties. The client was an experienced landlord and property developer of commercial and residential properties. Having previously worked with Aria Finance; they approached us with a new opportunity.
The Situation:
An exclusive property in Edinburgh became available for purchase at £423,500. Including taxes and renovations, the total investment was £551,000. The client intended to make a case purchase and had £200,000 readily available. However, they needed to secure the remaining £351,000 from their existing portfolio. The client was planning to purchase a four storey, purpose-built office block featuring modern, high-quality designs. With two-thirds of the property rented and generating an income, the remaining third was vacant. The client’s long-term plan involved converting the property into residential flats but they required flexibility regarding the timeline.
Our Solution:
Faced with a tight 5-week deadline for completion, the client had expressed a wish to avoid bridging finance, we recognised the need for swift action. We immediately contacted a lender we knew could expedite the process. We maintained close communication with both the client and the lender to ensure seamless coordination and adherence to our strict schedule.
A complication arose due to a subsidence in the property’s car park. The lender initially insisted that remedial work take place prior to completion, threatening the client’s deadline and the entire deal. Leveraging our strong relationship with the lender, we negotiated a solution: the remedial work would be a post-completion condition of the loan agreement. This strategic move allowed the client to secure the property on time without compromising future plans.
Benefits & Results:
By working with Aria Finance our client was able to successfully secure the property purchase within the tight deadline, securing a valuable asset for future development whilst avoiding the need for bridging finance.
Our swift and efficient approach to this case ensured that the property was completed within the critical 5-week deadline. This was helped by our trusted partnership with the lender, which enabled us to deliver better terms and negotiate terms to avoid delays.
At Aria Finance, we are committed to delivering tailored solutions to help our clients achieve their property goals.
