SDKA has completed a £1.46m residential bridging loan to support the purchase of a luxury apartment in St John’s Wood.
The facility will allow the property investor to acquire a three-bedroom apartment in the Yoo Building and use the loan term to issue a Section 42 notice as part of a future refinance strategy.
The apartment is currently subject to a high ground rent, which limits the number of buy-to-let lenders prepared to offer a term mortgage against the property.
By serving a Section 42 notice, the borrower will be able to extend the lease and reduce the annual ground rent liability, broadening the range of potential refinancing options.
SDKA said the Section 42 process typically takes between three months and one year to complete.
The case was introduced by Jack Cuthbert, high-net-worth finance broker at Articus Finance, and completed at 75% LTV on a flat rate of 0.84% per month over 12 months.
Cuthbert says: “My client’s requirements for the loan were quirky to say the least. SDKA were excellent, they addressed each point, the entire process was smooth and efficient and their communication was extremely impressive.
“In such circumstances to deliver the loan my client required is simply faultless.”
Kunal Mehta (pictured), managing director of SDKA, adds: “This is a bridging finance as a true solutions product, using the money to acquire an in-demand property in a highly sought after location and then using the term to open up the number of lenders who will provide long-term buy-to-let finance.”
