Loan type: Buy-to-Let | Loan value: £1,257,500 | LTV: 77% | Term: 25 years
In this case study, we showcase how the team at Aria Finance successfully supported a high-net-worth property investor in securing funding for a new development project. This case highlights Aria Finance’s expertise in navigating intricate financing situations and delivering results that meet client expectations, even under pressure.
The Client:
Our client, a high-net- worth individual and experienced property investor owns a large portfolio of properties held in a limited company.
The Situation:
The client had identified a new and exciting development project and required funding at 75% LTV. To raise the necessary funds, they sought to refinance six properties from their portfolio, valued at £1.7 million. The properties, a mix of buy-to-lets and HMOs, were flats located above commercial units, including restaurants on the ground floors. The client owned both the residential and commercial units under the same freehold title in a Ltd company.
The valuations fell below our clients’ expectations and created a requirement to re-structure the loan size from the original, desired funding amount required. The valuation reports also returned some poor comments regarding the sales and lettings demand, mainly due to the flats being located above restaurants. This in turn created some additional issues with our chosen lenders criteria that we had to quickly work on to resolve with them.
Our Solution:
Due to the strength of the borrowers profile and our long-standing relationship with our chosen lender, along with the fact several properties were being offered as security within the mortgage application, we were able to secure an offer of 77% gross LTV by our chosen lender.
Further complexity arose during the legal stage of the process, as new leasehold titles needed to be created for the 6 flats upon completion. This required obtaining consent from the existing lender who already had a mortgage secured against the freehold title and commercial units.
Despite these hurdles, we maintained strong communication with all parties involved, from the solicitors to the lender. Our team successfully negotiated a bespoke interest rate with the lender and ensured a smooth process, despite the challenges.
Benefits & Results:
Aria Finance’s expertise and strong lender relationships enabled us to navigate complex legal and financial obstacles. By delivering a tailored lending solution, we exceeded the client’s expectations, securing 77% gross LTV within the required timeframe. The client was highly satisfied with the result, enabling them to proceed with their development project on schedule.
