SDKA has completed a £522,500 bridging loan for a Victorian semi-detached property in Longsight, Manchester, which will be converted into a 20-unit temporary homeless accommodation facility. The transaction was completed in 12 days, despite the sui generis planning application not yet being submitted.
The three-storey building will be leased to a local charity, which had already agreed terms prior to the purchase. The urgency to secure the property and commence renovation works led to an accelerated process, with SDKA instructing the valuation before receiving the formal bridging application.
Property specifications
The development will comprise 18 ensuite studio apartments, an activity room, management office, and garden space. Accessibility features include a lift, adapted bathrooms, and modified kitchens for disabled residents.
The transaction was introduced by Harvest Commercial, an appointed representative of Optimum Elite. The facility was structured at 65% loan-to-value with a flat rate of 1.10% per month over a 12-month term. The borrower plans to exit through refinancing onto a longer-term product.
Underwriting approach
Kunal Mehta, managing director at SDKA, said: “Instructing a valuation prior to receiving the application form is very uncommon, but our underwriters had spent a significant amount of time talking to the broker and their client to completely understand the case, its timeframes and the end objectives.”
He added that the sui generis planning classification was essential for the incoming leaseholder’s charitable operations.
The transaction highlights the bridging finance market’s role in supporting alternative residential schemes, particularly for supported accommodation projects requiring specialist planning permissions.
