Short-Lease Bridging Loans2018-09-16T16:22:04+00:00

Short-Lease Bridging Loans

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What is a Short-Lease Bridging Loan?

A short-lease bridging loan (or lease extension bridging loan) is used to extend the leasehold of a property.

If you’re looking to purchase a property with under 10 years left on the lease, the property is likely to be sold at a significant discount to its freehold value. The lease is then extended, ideally on completion, and the property value increases dramatically overnight.

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Latest Short-Lease Bridging Loan Offers

View some of the latest short-lease bridging loan offers from major lenders.

Product BL0001 - Apply Now
Interest Rate
0.44%
Lender Fee
1-2%
Max LTV
55%
Security Type
Residential
Min-Max Loan
£100,000 – £5,000,000
Max Term
18 Months
Regulated Accepted?
No
Product BL0004 - Apply Now
Interest Rate
0.54%
Lender Fee
1-2%
Max LTV
65%
Security Type
Residential
Min-Max Loan
£100,000 – £5,000,000
Max Term
18 Months
Regulated Accepted?
No
Product BL0005 - Apply Now
Interest Rate
0.59%
Lender Fee
3%
Max LTV
70%
Security Type
Residential
Min-Max Loan
£250,000 – £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
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Criteria

Below are the main criteria points to consider when taking out a short-lease bridging loan.

1Up to 75% Loan to Value (or 100% with additional security).
2Freehold purchase accepted.
3Rates from 0.44% per month.
4Loans from £25,000 with no maximum loan size.
5Borrow from 1 month up to 24 months.
6Any security considered.
7Interest can be rolled into the loan.
8Loans with no early repayment charges available.
9We will consider any exit route.
10Refurbishment or conversion accepted.
11Adverse credit accepted.
12Loans available throughout the UK.

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.

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