Many lenders set a minimum leasehold term of at least 40 years remaining when considering property loans. This policy exists because the value and marketability of leasehold properties tend to decline as the lease term shortens, especially below this threshold. If the remaining lease is less than 40 years, it can be difficult to obtain financing, limiting opportunities to invest in new properties, increase the value of existing ones, or secure long-term lending for current properties.

When dealing with leasehold properties, understanding the importance of lease duration is crucial. A shorter lease not only affects financing options but can also impact the property’s resale value.

To address these challenges, options like lease extensions or renewals can be considered to improve the property’s appeal to lenders. Additionally, financial products such as bridging loans from Inflow can provide essential funds to purchase properties, finance lease extensions or renewals, or carry out refurbishment projects, facilitating smoother transactions and property management.

Don’t let an investment opportunity with a shorter leasehold deter you. Contact us or your broker to discuss how short-term property finance can resolve your short-term property lease concerns.