SDKA has completed a £522,500 residential bridging loan in 12 days to support the acquisition of a sui generis property in Manchester intended for use as temporary homeless accommodation.
The loan was secured against a three-storey Victorian semi-detached property in Longsight, Manchester, where the borrower plans to develop a 20-unit temporary homeless living facility.
At the point of completion, a sui generis planning application had yet to be submitted. However, a lease had already been agreed with a local charity, prompting the need for swift funding to secure the building and begin renovation works.
In a departure from standard practice, SDKA instructed the valuation before the formal bridging application was submitted, following discussions between its underwriting team, the broker and the client regarding the structure and timescales of the transaction.
Once refurbished, the scheme is expected to comprise 18 en-suite studio apartments, alongside an activity room, a management office and garden space.
The property will also incorporate disabled access through the installation of a lift, accessible bathrooms and kitchens, and associated alterations.
The transaction was introduced by Harvest Commercial, an appointed representative of Optimum Elite.
The facility was agreed at 65% loan to value on a flat rate of 1.10% per month over a 12-month term, with exit via refinance onto a longer-term product.
Kunal Mehta (pictured), managing director of SDKA, says: “Instructing a valuation prior to receiving the application form is very uncommon, but our underwriters had spent a significant amount of time talking to the broker and their client to completely understand the case, its timeframes and the end objectives.
“In this instance sui generis planning was essential to the deal as it is required for the incoming leaseholder and their charitable work, another element that made our desire to see this deal through to the end all the more apparent.”
SDKA is an unregulated bridging lender providing finance across residential, semi-commercial and commercial property in England, Wales and Scotland. Its product range includes rates from 0.84% per calendar month, lending up to 75% loan to value, with terms of up to 24 months and a maximum loan size of £10m.
