Loan type: Buy-to-Let Mortgages | Loan value: £210,000 | LTV: 70% | Term: 25 years
An unmortgageable property can be a hidden gem for a property investor, often on the market for a fraction of their potential value when brought back to a mortgageable condition. However, unless the buyer is paying cash, securing the necessary finance can be a significant hurdle. This is where Aria Finance can help, with our deep-rooted industry relationships we know the right lenders to approach and how to structure a successful deal.
The Client:
The client was an experienced landlord with an established portfolio and was looking to raise funds to purchase a new buy-to-let property.
The Situation:
The property in question, a high-rise ex-local authority flat, was situated in a block with limited open market sales (no sales since 2022) and was poorly presented. Consequently, it was deemed unmortgageable. The client had previously with another broker who had received a nil valuation from a lender and now required expert assistance, so approached Aria Finance for a solution.
Our Solution:
Recognising the challenges posed by the property, we sought a lender with flexible criteria and a suitable risk appetite. We contacted a trusted lender with whom we have successfully collaborated on numerous occasions, confident they would be comfortable with this type of property. One issue for the lender was the fact that at the end of the mortgage term there would be under 100 years on the lease, so to align with the lender's requirements, we proposed a capital repayment rather than an interest-only mortgage, which had been the client's initial preference.
Benefits & Results:
As a strategic partner of the lender, Aria Finance was able to access exclusive products and rates, allowing the client to secure an additional 20% on the loan. Moreover, we facilitated a streamlined process by completing the transaction without solicitors, resulting in a quicker and smoother experience for the client. From initial application to completion, the entire process took just 8 weeks.
With Aria Finance's expertise and strategic partnerships, turning an unmortgageable property into a profitable investment is not just a possibility - it's a reality.
