Some High Street lenders will consider a lease with anything less than 70 years remaining too short to lend against whilst many more will insist on a minimum 50 year term before consenting to a loan. In addition, they generally also require the lease to be extended at the point of completion.

Despite the reluctance of High Street lenders to offer Short Lease loans they can be a cost-effective way to buy in desirable locations, generate excellent capital growth and attractive rents. Fortunately, there are a small number of specialist bridging lenders that are prepared to take a much more flexible approach, advancing loans against a variety of leasehold properties with 10 or even less years remaining on the lease.

Furthermore, bridging lenders won’t seek to overcomplicate matters for existing leaseholders giving them finance that allows them to extend the lease during the life of the bridging loan. In doing so they allow them to significantly improve the value of their property.

With sale of the extended leasehold property often being the exit strategy for redeeming the bridge loan this flexible approach clearly benefits both borrower and lender alike. Crucially specialist lenders, by recognising the strength of the property market and looking at each case on its merits, will consider loans that for High Street lenders are often a blanket decline where the computer says “No.”

As well as providing funds to purchase a short-leasehold property or to extend an existing lease, loan proceeds can also be used for a multiplicity of other purposes such as cash injection into a business or the settlement of creditor debts.

In time-constrained scenarios short lease loans can generally be obtained as quickly as bridging loans against more standard types of property. Interest rates for loans secured against short leasehold property will typically be a little more expensive than those secured against either freehold or longer leasehold properties but, as detailed above, the benefits can be very significant.

Still unsure and need to explore your options? Why not consult an expert?

Central Bridging are specialists in Short Lease Loans with a great track record. We have funded many purchase and refinance loans against short-leasehold properties and in doing so allowed significant numbers of borrowers to extend their leases and subsequently sell for substantially enhanced figures.

We are a principal lender offering a range of loan facilities for business use from £100K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold and leasehold properties across England and Wales.

Crucially you will always speak to a decision maker who will take time to understand you and your situation and unlike some of the bigger banks will then tailor a solution that best suits your needs rather than our own.

Why not give us a call on 03332 400 506 for an informal chat about your options.

Media Contact
Company Name: Central Bridging
Contact Person: John Clifford
Email: Send Email
Phone: 03332 400 506
Country: United Kingdom
Website: https://www.centralbridging.co.uk