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Many property investors assume they need a significant cash deposit to purchase commercial or semi-commercial property. However, where sufficient equity exists in other assets, specialist lenders may be able to structure a solution using additional security.
This case study demonstrates how Aria Finance helped an experienced landlord secure a 100% commercial mortgage by using equity in their residential home through a cross-charge arrangement, enabling the purchase of three investment properties without a cash deposit. It also highlights the value of specialist mortgage advice when dealing with complex commercial property transactions involving multiple sellers and simultaneous completion.
Case Summary:
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Commercial mortgage secured against a cross-charged portfolio
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Experienced landlord purchasing three new commercial and semi-commercial investment properties
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No cash deposit available, with the client's residential home used as additional security via a second charge to achieve 100% funding
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Four properties included within the security package: two semi-commercial properties, one commercial property and the client's residential home
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Complex transaction involving three separate sellers, all requiring simultaneous completion
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Aria Finance sourced a lender willing to structure the transaction using existing residential equity to fund the entire purchase
The Client:
Our client was an experienced property landlord looking to expand their investment portfolio by purchasing three additional income-producing properties. The acquisitions comprised a mixture of commercial and semi-commercial assets, presenting an attractive opportunity to grow their portfolio. However, while the client had significant equity within their existing residential property, they did not have the cash deposit typically required to complete the purchases.
The Situation:
The client needed to secure finance for three separate property purchases, each involving a different seller. To complete the acquisitions successfully, every transaction had to complete simultaneously on the same day.
The main challenge was funding the purchases without a cash deposit. The client already had a mortgage secured against their home, meaning a traditional purchase mortgage alone would not provide sufficient funds. A lender was required that could recognise the equity available within the client's residential property and accept it as additional security to enable 100% funding of the purchases.
The complexity of coordinating three separate transactions, multiple solicitors and simultaneous completion added another layer of difficulty, making lender selection and careful case management critical.
Our Solution
Aria Finance identified a specialist lender able to structure the transaction by taking additional security over the client's residential property through a second charge, alongside the commercial portfolio. This approach allowed the lender to utilise the available residential equity to provide 100% funding for the three new purchases without requiring any cash deposit from the client.
Working closely with the lender and all legal representatives involved, our team coordinated the transaction to ensure each of the three purchases progressed together. Regular communication between all parties helped overcome the logistical challenges of multiple sellers and separate legal teams, ultimately enabling simultaneous completion across all three properties.
Benefits & Results:
By sourcing the right specialist lender and structuring the finance creatively, Aria Finance enabled the client to acquire all three investment properties without contributing a cash deposit.
The bespoke funding solution allowed the client to expand their commercial property portfolio while making effective use of the equity already available within their residential home. Despite the complexity of coordinating three sellers and multiple solicitors, the transaction completed successfully, demonstrating how specialist advice and access to the right lenders can deliver solutions that are not available through mainstream finance providers.
Aria Finance went above and beyond to identify a lender capable of accommodating the client's unique circumstances, delivering a tailored funding package that made an otherwise challenging portfolio acquisition possible.
The successful completion highlights how a tailored approach to commercial property finance can help investors unlock opportunities that may otherwise be difficult to achieve. By identifying a lender that could consider the equity within the client's residential property as additional security, Aria Finance helped the client complete the acquisition of three new assets without requiring a cash deposit.
