SDKA reduces BRIDGE 75 Semi-Commercial rate by 60bps
SDKA has reduced its BRIDGE 75 Semi-Commercial rate by 60bps to 0.95% pcm for loans over £250k up to 75% LTV.
With terms available up to 24 months and up to a maximum loan size of £2.5m, the move has been made following an increase in enquiries and applications based on the competitive pricing of semi-commercial properties around the country and the chance to create or further boost multiple income streams.
There has also been several discussions with developers and brokers who are turning semi-commercial properties into residential residences to take advantage of the non-residential Stamp Duty Land Tax (SDLT) rates.
Under current SDLT thresholds a residential property purchased for £200k would incur an £11.5K payment, whereas a semi-commercial building would result in just a £1k fee.
The figures at £500k would be £40k and £14.5k respectively, a difference of £25,500.
Kunal Mehta, managing director of SDKA, said: “We have offered commercial and semi-commercial bridging since our inception 10 years ago, they are very much the bedrock of our business with increasing deal numbers every year.
“Last year we boosted the BRIDGE 75 Semi-Commercial LTV to 75% in response to market conditions, and we have reacted again by reducing the rate to 0.95% pcm to further enhance our competitive offering against a backdrop of reducing semi-commercial property prices around the UK.”
SDKA is an unregulated bridging lender offering products on Residential, Semi-Commercial and Commercial properties across England, Wales and Scotland. The lender offers interest rates from 0.84% per calendar month up to a maximum LTV of 75%.