Loan type: Bridging Loan | Loan value: £198,263 (Gross Loan) | LTV: 76% | Term: 12 Months
In this case, Aria Finance was approached by a long-standing client seeking financing for a property purchase and ambitious renovation project. With tight deadlines and complex requirements—including securing favourable financing terms and accommodating remote document signing—Aria’s expertise and relationships with lenders enabled us to deliver a tailored solution that met the client’s unique needs efficiently and effectively.
The Client:
We were approached by two clients, one of which is a long-term existing client of Aria’s, seeking finance which would enable them to purchase a bungalow for £256,000 and carry out extensive refurbishments estimated at £94,000, to increase the property’s value to a projected Gross Development Value of £400,000.
The Situation:
The clients planned to purchase and renovate the property, involving both cosmetic upgrades and substantial structural work, including a new roof. Many lenders classify roof work as heavy refurbishment, potentially increasing the interest rate and restricting the Loan-to-Value (LTV) ratio. To keep costs down, our mission was to find a lender who would categorise the work as light refurbishment, preserving a favourable LTV while securing a lower interest rate.
Our Solution:
The project included converting the garage, which meant the lenders required confirmation of the GDV once the works were completed. The lender’s valuer requested comprehensive information, including detailed plans with drainage specifications, to support the anticipated GDV.
Given the urgency of the purchase timeline, obtaining these details quickly was a challenge. To expedite the process, we negotiated with the lender, securing agreement to proceed based on the original valuation report, which confirmed the GDV at £400,000 without waiting for additional garage conversion documentation.
Furthermore, an additional obstacle arose when the client was abroad at the time of completion, requiring electronic signatures on some loan documents—a deviation from the lender’s standard policy of requiring original signed documents. We obtained a rare exception, allowing the electronic signing process to move forward without delay.
Benefits & Results:
Leveraging our strong lender relationships and extensive expertise, we delivered a customised, flexible financing solution within a tight timeframe of just under seven weeks. We secured a reduced interest rate which was tied to a five-week completion, however the client required additional time to conclude the purchase. Despite exceeding the original five-week deadline proposed by the lender, we successfully obtained an extension on the reduced rate for an additional month.
This case highlights Aria Finance’s commitment to providing tailored, time-sensitive solutions that adapt to the specific challenges and timelines of our clients, ultimately facilitating a smooth and cost-effective financing experience.
