SDKA has provided a £180,000 residential bridging loan to support a developer whose original lender altered its terms midway through a project.
An experienced developer working on a scheme of four homes in Liverpool has secured fresh funding after their existing development finance lender increased the repayment requirement during the term of the loan.
The shift — raising the payment per completed unit from 75% of net sales proceeds to 100% — left the borrower struggling with cashflow, missed payments and rising debt.
Introduced via a broker, the case centred on the need to refinance quickly, settle the previous facility and generate sufficient liquidity to keep the scheme moving.
The borrower also needed a structure that recognised a temporary lack of income caused by the disruption.
After assessing the circumstances, SDKA agreed a twelve-month term with interest retained for the duration. The £180,000 loan was written at a fixed monthly rate of 0.95% at 75% loan-to-value, secured against a four-bedroom end-terrace property in Wigan.
The intended exit is the sale of the final remaining home on the Liverpool site.
Kunal Mehta, 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.”
He added: “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.”
