A specialist lender has provided £774,000 in bridging finance for the acquisition of a mixed-use seafront property in East Yorkshire, completing the transaction in under two months.
SDKA advanced the 18-month facility at 90% loan-to-value against a purchase price of £860,000, representing a below-market-value acquisition. The loan carries an interest rate of 1.1% per month, equivalent to 13.2% annually.
The six-storey building, constructed in 1930, comprises a 44-bedroom hotel, commercial bars and restaurants, and 15 residential apartments operating as a combination of long-term rentals and holiday lets. The property completed in early 2025.
Refurbishment plans
The borrower, described as a returning client of the lender, plans to reopen the hotel following a staged refurbishment programme. The facility was structured to accommodate the complexity of the mixed-use asset and the client’s completion timeline.
Christopher Simpson, senior underwriter at SDKA, said the lender was prepared to assess applications beyond standard criteria. “Our lending criteria provide a framework, not a barrier to getting deals done,” Simpson stated.
The transaction reflects ongoing activity in the commercial property lending market, where consolidation among property service providers has been noted in recent months. Short-term bridging finance remains a common tool for property investors pursuing value-add opportunities.
Market context
The deal comes as UK property price growth forecasts remain modest, with investors increasingly focused on commercial and mixed-use assets offering multiple income streams.
The coastal hotel sector has seen varied performance in recent years, with operators balancing traditional hotel accommodation against growing demand for short-term holiday lettings.
