SDKA has provided a £220,000 bridging loan to fund the full auction purchase price of a semi-detached property in Stockport.
The four-bedroom property in Reddish is being converted into an HMO under permitted development rights.
The borrower, an experienced builder, had sufficient funds to cover the conversion work. The bridging finance allowed the purchase to complete within the auction’s legal deadline.
SDKA provided a 12-month serviced bridging facility at a rate of 0.95%, taking additional security over another property in the borrower’s portfolio in the same district.
The planned exit is a refinance onto a term product after the conversion work has been completed.
The borrower was a new direct client who discovered SDKA through its recent social media marketing.
Christopher Simpson, underwriter at SDKA, says: “This case reflects SDKA’s expertise in structuring complex bridging transactions, particularly those involving multiple security properties, HMOs and planning or permitted development requirements.
“By taking a pragmatic underwriting approach, we are in a strong position to support borrowers on deals that often fall outside the appetite of more traditional lenders as our funding structure agreements ensure we are not beholden to any specific lending criteria.”
