Aria Finance recently assisted an experienced property developer in refinancing a significant development project, helping to clear a high-interest bridge while securing a competitive long-term mortgage solution.
The Client:
The client is an experienced property developer with a portfolio of multi-unit freehold buildings (MUFBs) and a strong track record in both development and investment properties.
The Situation:
The client held a development loan of £1.9m on a project comprising 6 flats and 1 commercial unit, with a total Gross Development Value (GDV) of £2,560,000, which was due to expire at the end of the year.
The bridging loan carried a high interest rate and the client needed a solution that would clear the existing loan before expiry while optimising costs and flexibility for future refinancing.
Our Solution:
Aria Finance worked closely with the client to provide multiple refinancing options. We identified that splitting the titles to individual flats would allow the client to secure the desired loan amount at the lowest possible rate.
We arranged a buy-to-let mortgage on 5 of the 6 flats, totalling £1,920,000 at a 75% LTV with a competitive 5-year fixed rate. This solution cleared the bridging finance, reduced the client’s overall cost, and left the remaining flat and commercial unit unencumbered for future refinancing. The process was completed in under 7 weeks from application to completion, with free valuations and seamless service throughout.
Benefits & Results:
The refinancing allowed the client to clear the high-interest bridge finance ahead of expiry, resulting in significant cost savings. By securing a competitive 5-year fixed rate, the client reduced their long-term financial exposure and achieved greater stability in their portfolio. The structure also maintained flexibility, leaving one flat and the commercial unit unencumbered for future refinancing opportunities.
The swift completion demonstrated Aria Finance’s efficiency and capability in managing complex refinancing solutions. Following this successful transaction, the client has gone on to complete multiple bridge and term loans with Aria Finance, reflecting their confidence in our expertise and service.
