SDKA funds entire auction purchase price for HMO property conversion

SDKA has delivered a 100% LTV residential bridge for the full £220,000 auction purchase price of a semi-detached property in Stockport.

The borrower plans to convert the property into an HMO.

With the client, an experienced builder by trade, already holding funds to cover the planned conversion works, the financing ensured the four-bedroom property in Reddish was bought within the legal deadline with the building now being repurposed under permitted development.

The transaction was completed through a 12-month serviced bridging facility at 0.95%, with the lender taking additional security over an existing portfolio property in the same district.

Exit will be achieved through refinance onto a term product once works are complete.

The borrower was a new direct client, having discovered the firm through recent social media marketing activity.

Christopher Simpson, underwriter at SDKA, said: “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.”