Bridging lender SDKA has provided a 100% LTV bridging loan covering the full £220,000 auction purchase price of a semi-detached property in Reddish, Stockport. The borrower, an experienced builder, plans to convert the four-bedroom property into an HMO under permitted development.
The client already held funds to cover the planned conversion works, making the financing purely a purchase solution. SDKA structured the transaction as a 12-month serviced bridging facility at 0.95%, with additional security taken over an existing portfolio property in the same district. Exit is planned through refinance onto a term product once works are complete.
The bridging loan allowed the purchase to complete within the auction's legal deadline, with conversion of the building now under way under permitted development rights.
The borrower came to SDKA as a new direct client, having found the firm through its social media marketing activity.
"This case reflects SDKA's expertise in structuring complex bridging transactions, particularly those involving multiple security properties, HMOs and planning or permitted development requirements," said Christopher Simpson, underwriter at SDKA.
"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."
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