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A New Lease of Life: Helping You Finance a Lease Extension

At ADD Property Finance, we’re dedicated to helping property investors maximise their investments. Our expertise in property finance means we can help to navigate the complexities of lease extensions, offering tailored solutions to unlock the full potential of your property assets.

Extending a lease isn’t just about adding years to your property’s tenure; it’s a critical step in safeguarding your investment and maximising its potential. A short lease can significantly diminish a property’s value and marketability, posing challenges for investors and homeowners alike.

A Real-Life Example

Consider a scenario where a client has a flat boasting a mere 2-year remaining lease. With a purchase price of £400,000 and an additional £400,000 needed to extend the lease by another 125 years, the potential value of the property is estimated at an impressive £1.3 million. Traditional lenders might shy away from such an opportunity, but we can help find a financial solution for the client.

In this scenario, we would advance the client 90% of the net purchase price (£360,000) along with the entire amount required for the lease extension (£400,000). With our forward-thinking approach, we would help source a lender to look beyond the initial investment to the property’s future value, providing 95% of the overall funding required.

Once completed, the client would refinance with a term mortgage at around 70% Loan-to-Value (LTV) to exit the bridge. This strategy would unlock significant value and provide a sustainable long-term solution for the client.

What sets ADD Property Finance apart is our commitment to finding innovative solutions for our clients’ financing needs. Whether faced with a short lease or seeking to maximise property value, we can be trusted to guide you with confidence and ease. Contact us today to explore how we can help you achieve your property finance goals.

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Whether you’re a first-time buyer, moving home, looking to remortgage or raise a second charge, dive into buy-to-let ventures, or looking to explore development opportunities, we have tailored solutions that cater to your unique needs.

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