Bridging lender Funding 365 has introduced a new, short lease bridging product which it believes will fill a gap in the short term lending market.
Developed following consultation with brokers, the product is targeted specifically at financing the purchase of residential investment properties with short remaining lease terms of between 10 and 70 years.
It will also provide financing to allow the purchase of the lease extension once this has been agreed with the property freeholder.
Loans under this product are available up to a 70% loan to value ratio for a term from three to 12 months. The interest rate on the product starts at 0.99% per month. The product has a 2% arrangement fee, but no early redemption charges or exit fees.
Mike Strange, Funding 365 director, said: “We’re excited to be bringing this new product to the bridging market. Funding 365 is well known for its speed of service and low interest rates. Launching this new short lease product also demonstrates Funding 365’s flexibility in financing unusual or complicated property transactions.”
Paul Weitzkorn, Funding 365’s sales director, added: “Funding 365 has always worked with its broker partners to develop bespoke financing solutions for complex and non-standard scenarios. Now, our commitment to lend on short leases and fund lease extension provides borrowers with flexibility in a world where lease extension timing can be uncertain.
“We look forward to working with our broker partners on delivering this product to their clients.”
