SDKA has increased its semi-commercial LTV to 75% to meet increasing demand.
The bridging lender’s product enhancement is expected to support developers turning semi-commercial properties into residential residences while taking advantage of the non-residential SDLT rates.[BF1]
Once acquired, developers are using PDRs to convert the commercial element to residential, which has the potential to increase income streams from the same asset.
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Scot Tsang, head of operations and in-house legal at SDKA (pictured above), said: “The numbers are compelling to developers as SDLT savings can go a long way to, if not cover all, the associated costs of converting a semi-commercial asset into a fully residential offering, which can increase income streams and asset value.
“By enhancing our lending criteria for semi-commercial properties to 75% LTV, an increase of 5 percentage points, we are ultimately providing greater flexibility and higher lending potential for every property professional and making semi-commercial properties an even more attractive investment.”
SDKA offers interest rates from 0.85% pcm up to 75% LTV and terms of up to 24 months.
Its maximum loan size is £10m.
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