Acuitus Finance has been working with lenders to develop a new loan offer specifically for properties which have short-term lease profiles.
In recent years, landlords have been steadily been granting shorter leases – sometimes less than five years – while lenders have only been willing to finance properties where the lease lengths are five years or more.
In the rare instances where lenders were prepared to finance properties with a lower lease profile, the loan-to-values have been very modest.
However, we are seeing an end to this mismatch as an increasing number of lenders are now taking a new attitude to short leases. For example, a
borrower recently was able to secure a loan of 60% LTV on a regional town centre property which has a single tenant and less than three years remaining on the lease.
Stuart Buchanan of Acuitus Finance comments: “This refreshing change of lending policy is available for properties valued at less than £1m through to properties in the £20m+ band.
“As we have been closely involved with the development of this new product, these new types of loan are being initially rolled out through Acuitus Finance before being more widely available.”
To discuss these new products, please contact Stuart at Stuart.Buchanan@acuitus.co.uk / 07879 432868 / 020 7034 4850)