This case study highlights how Aria Finance successfully arranged a complex commercial mortgage refinance for a semi-commercial property in North London. Through detailed structuring advice, strategic lender negotiations, and creative problem-solving, we secured long-term funding for a client facing multiple challenges.
The Client:
Our client is a construction project management company based in London. The company had recently completed the development of a semi-commercial property located in Barnet. The residential units had already been sold off and were not part of the security or gross development value. However, they retained the ground floor commercial space for their business operations.
The Situation:
The client approached Aria Finance to refinance an existing facility. The security was a newly built commercial property consisting of two ground floor units within a mixed-use development. The gross property value stood at £1.75 million, and the client sought a long-term mortgage solution to replace the short-term facility in place.
However, the application faced significant obstacles. Initially, the lender declined the case due to a series of historic insolvencies across four companies associated with the clients. Although these insolvencies were fully resolved and no creditors remained unpaid, the presence of these records raised red flags during the underwriting process.
Complicating matters further, the borrower operated multiple businesses, and the structure between the operating company (OpCo) and property company (PropCo) did not align. To qualify for favourable OpCo/PropCo pricing, the lender required identical shareholding and directorship across the two entities. However, the client also needed to structure things in a way that allowed them to use the profits from their other companies to support serviceability. Balancing lender requirements with the realities of a complex group of businesses required a bespoke approach.
Just as the case was approaching completion, the borrower’s solicitor identified an outstanding planning condition. The local authority had required a BREEAM assessment to be submitted prior to the occupation of the commercial units. Fulfilling this condition would ordinarily take several months, potentially delaying the transaction.
Our Solution:
Aria Finance took a proactive and strategic approach to overcome each of these issues.
First, we worked closely with the client to fully understand the background behind the historic insolvencies. We gathered documentation and drafted a detailed appeal for the lender. Once the lender was satisfied that no creditors had suffered losses, they overturned the initial decline and agreed to proceed with the case.
Next, we tackled the structuring issue. We reviewed the client’s group of businesses and advised on how to establish a clear and compliant OpCo/PropCo arrangement. This included amending shareholdings to align both entities and carefully designing the lease agreement between the companies. The structure had to meet the lender’s requirements while also allowing the client to draw on trading profits from their broader business activities to demonstrate affordability.
When the outstanding planning condition threatened to delay completion, we liaised directly with the lender to find a pragmatic workaround. We agreed that completion could proceed on the condition that: the client’s solicitor confirmed the BREEAM assessment was the only outstanding issue; a mock BREEAM assessment demonstrated that the required rating could be achieved; and evidence was provided that the formal assessment process had been initiated.
Once these items were supplied, the lender was satisfied, and the deal progressed to completion.
Benefits & Results:
The refinance ultimately provided the client with the stability and certainty they needed to continue growing their business from a property they had developed themselves. By securing a long-term commercial mortgage on a fixed-rate repayment basis, the client was able to move away from short-term finance and into a solution better suited to their long-term goals.
More importantly, the process reinforced the value of working with a finance partner that understands the bigger picture. From addressing historic company challenges to advising on corporate structuring and managing last-minute legal issues, we were with the client at every stage. What could have been a deal lost at the first hurdle became a carefully managed success story - allowing the client to retain full control of their asset, maintain operational continuity, and secure funding on the right terms.
This case is a strong example of how persistence, creativity, and specialist knowledge can turn a complex, initially declined application into a fully completed deal.
