SDKA has provided a £180,000 residential bridge to an experienced developer after their previous lender changed repayment terms mid-term.
The developer, working on four properties in Liverpool, faced financial difficulties when the original lender increased the required payment per property sale to 100% of net sales proceeds from the 75% originally agreed.
This led to late payments and a higher debt burden.
The developer, through their broker, approached SDKA to repay the existing lender and free up cashflow to finish the scheme.
SDKA agreed to the application with 12 months retained interest to help with the income gap.
The loan was set at a fixed rate of 0.95% per month at 75% loan-to-value (LTV), with security on a four-bedroom end-terrace in Wigan.
Exit will be once the last property on the site is sold.
Kunal Mehta (pictured), managing director at SDKA, said: “The applicant was put in a difficult situation by the development finance lender, and sometimes people simply need a helping hand to get back on track.
“We pride ourselves on considering all cases on an individual basis, and with our proven lending record and close long-term relationships with our funding partners we always have the option to complete cases outside of standard criteria.”
