How Much Can I Borrow?
Short lease bridging loans are usually available up to a maximum of 75% of the property’s value however some lenders will lend 100% of the purchase price if the lease is extended at the point of completion given the fact that the property will increase in value with a longer lease.
The minimum loan is usually £25,000 with no maximum meaning we can fund virtually any loan.
How Much Will It Cost?
Specialist short lease bridging loan lenders are fairly flexible so even though the lease is short and will be extended on completion, assuming that the property itself is suitable security, rates will be at the lower end of the scale. Rates start at around 0.44% per month and interest can be added to the loan leaving no monthly payments.
Most bridging lenders charge a lender fee, usually 2% of the loan amount. In some cases, lenders also charge an exit fee, this tends to be 1% of the loan amount, or 1 months interest. These fees can usually be added to the loan.
How Long Do They Take to Complete?
We can complete short-lease bridging loans in around 7 – 14 days if all information, including the valuation and legal pack, is completed and satisfactory. Require the loan sooner? Please make us aware upfront.
Generally, it is worth allowing around 14 days to complete your lease extension bridging loan, to allow for any unforeseen delays.