The applicant explained that they were working on a development of four properties in Liverpool and their existing funder had raised the required payment sum per property sale up to 100% of net sales proceeds, despite initially agreeing 75%.
The change caused several late payments and a high debt burden, with the developer eager to repay the existing lender and raise cashflow to continue work on the scheme.
SDKA agreed the application with 12 months’ retained interest to help resolve the lack of income.
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The deal was concluded at a fixed rate of 0.95% per month at 75% LTV, with a residential four-bedroom end-terrace in Wigan as security.
Exit will be achieved once the last property on the site has sold.
Kunal Mehta, managing director at SDKA (pictured above), 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.”
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