Aria Finance Aria Finance structured a £7.2m development finance facility for a mixed-use scheme in Wood Green, North London, combining refinance and construction funding within a single bespoke solution. By leveraging our expertise as a specialist development finance broker, we delivered a flexible structure that enabled the client to refinance existing debt while fully funding the construction of additional residential units, without the need for additional security.
Case summary:
The Client:
The client is an experienced property developer and long-standing Aria Finance client, having completed multiple transactions with us since 2020. The borrowing entity included a non-UK national with a 5-year visa, who has been UK-based for several years.
The Situation:
The client owned a mixed-use building in Wood Green, North London, comprising a ground-floor retail unit with 13 residential flats above. Planning permission had been secured for a three-storey upward extension to deliver 9 additional self-contained residential units, increasing the scheme’s total GDV to £10.9m.
They required a development finance solution that could both refinance an existing £3.7m bridging loan and raise capital to fund the construction works. The key challenge was structuring a facility that could accommodate both elements efficiently, while mitigating risk and avoiding the need for additional security.
Further complexities included the borrower profile, the requirement for a right to light insurance policy, and the need to ensure that development funding was fully protected throughout the build programme.
Our Solution:
Aria Finance worked closely with the lender to structure a fully bespoke dual-facility solution. This approach separated the refinance and development elements while combining them under one cohesive agreement, ensuring clarity, flexibility and efficiency throughout the transaction.
The commercial investment facility was structured to refinance the existing lender on day one, with interest serviced from the rental income generated by the property. This removed the need to rely on additional buy-to-let assets as security, simplifying the structure and reducing the client’s overall exposure.
In parallel, the residential development facility was designed to fund 100% of the construction costs for the 9 new units. The funding was fully ring-fenced and released in staged drawdowns, ensuring the build programme remained protected and independent from the investment element.
Throughout the process, we maintained proactive communication with both the client and lender, providing multiple appraisals and structuring options to refine the solution. We also coordinated a series of all-party calls to resolve key issues, including a right to light matter which required a bespoke insurance policy. As a precaution, we arranged a background valuation on an additional buy-to-let property, although this was ultimately not required.
Leveraging our strong lender relationships, we successfully negotiated a significant reduction in the lender’s commitment fee, from £10,000 to £1,000, delivering a more cost-effective outcome for the client.
Benefits & Results:
This transaction demonstrates how a tailored development finance solution can support both refinance and construction objectives within a single, streamlined structure. By separating the two elements into distinct but complementary facilities, Aria Finance delivered a clear and transparent funding solution that reduced complexity and enhanced efficiency.
The client successfully refinanced their existing £3.7m bridging loan while securing full funding for the development, enabling them to progress the scheme and maximise its end value. Crucially, this was achieved without the need for additional security, allowing the client to retain flexibility across their wider property portfolio.
The ring-fenced development funding provided certainty over the build programme, ensuring that construction could proceed without reliance on rental income or external variables. In addition, the reduced commitment fee delivered a meaningful cost saving, improving the overall viability of the project.
Despite the complexities involved, including legal considerations and bespoke structuring requirements, the deal progressed from initial terms to completion in under four months. This case highlights Aria Finance’s ability to deliver expert, relationship-driven development finance solutions for complex mixed-use schemes across London and the wider UK.