An experienced developer has secured new finance from SDKA after their existing development lender altered its repayment policy mid-term, creating acute cashflow difficulties.

The borrower had been progressing a four-unit scheme in Liverpool when their funder increased the required payment per sale to 100% of net proceeds — previously set at 75%.

The change led to late payments and a rising debt burden, leaving the developer seeking to refinance and stabilise the project.

Working via a broker, the applicant approached SDKA, which reviewed the circumstances and agreed a £180,000 residential bridge structured with twelve months of retained interest to mitigate the lack of income.

The loan was issued at a fixed rate of 0.95% per month at 75% LTV, secured against a four-bedroom end-terrace property in Wigan.

The developer intends to exit the facility once the final unit on the Liverpool site has sold.

PRIORITY ON FLEXIBLE CASE ASSESSMENT

Kunal Mehta (pictured), managing director of 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.”

SDKA provides unregulated bridging finance across England, Wales and Scotland, lending on residential, semi-commercial and commercial assets. Its products start from 0.84% per month, with loans available up to 75% LTV, terms of up to 24 months, and a maximum facility size of £10 million.