Finance to extent a leasehold with a short term remaining.
Mortgage companies that lend on Leasehold properties usual require a lease of at least 25 years longer than the proposed loan.
Therefore if you wanted funding over 10 years your lease would need to at least 35 years remaining.
Even if the Landlord was willing to extend the lease you would be unable to raise the funds against the lease to purchase the extension a catch 22 situation.
We have a solution.
A short term bridge against the short lease this raises sufficient funds to purchases a new long term lease. We can then arrange a standard mortgage.
Client’s circumstances: A client was looking to raise funds to extend a lease on an existing property
The client had struggled to get financing from a majority of lenders as there was a short time frame of seven years left on the lease.
Solution: Saxon Finance arranged a £650,000, 12-month bridging loan, based on an open market value of £1 million. The process to extend the lease then commenced, with further funds provided during the term so the client could purchase a long lease and increase the value of the property.
The benefits: By extending the lease the client was able to secure a long term buy-to-let (BTL) mortgage.
Normally the minimum 3 month term is sufficient to compleat the new lease.
However term of up to 24 months are available, this feature could also be used other funding not just the leasehold extension.
Rates from 0.89%
Loans from £100k – £5m
Terms from 3-24 months
Up to 70% LTV
Buy-to-let, commercial & semi-commercial assets*
Serviced & retained interest options
Lend on open market value
No up-front fees
No exit fees
No early repayment charges
No credit scoring
No personal guarantees required
This is unregulated finance, so it is a strict condition of a first charge loan that you (and/or any family member) shall not live or intend to live in the property.