Short Lease Bridging Loans

100% Bridging Loans

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Funding options


Scaled For Your Needs

  • 1 to 24 months
  • No Minimum or Maximum amounts
  • Competitive monthly rates
  • Non-status and full status


  • Bridge short-term funding gaps
  • Interest roll-up schemes
  • Adverse Credit – no problem
  • Funding can be available in 5 – 7 business days

Secure A Bargain

  • Fund purchase of short-lease property
  • Fund lease renewal
  • Ideal for auction purchase
  • Commercial and Residential lease

Talk to Rangewell - the business finance experts

Short leaseholds can provide property bargains. At Rangewell, we know every lender in the market and can help you find the funding you need to secure a short leasehold deal.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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If you’re looking to purchase a property with under 10 years left on the lease, it is likely to be sold at a significant discount to its freehold value - because conventional mortgages cannot be used. A Short-Lease Bridging Loan can help

Table of Contents

Many homes, and especially flats throughout the UK, are owned on a leasehold basis. However, as a lease runs out it becomes more and more expensive to renew and, as a result, it can often be difficult for lease owners to sell their property.

A leasehold will run for about 125 years and can be renewed. However, as the lease grows shorter, the potential added value grows higher and higher and so the cost of extending the lease increases. Because of the costs of renewing a short lease, and the potential to lose the property if it expires, many mortgage providers will not lend on properties with a lease of fewer than 75 years. As soon as a lease becomes “short”, it becomes much harder to sell, because most buyers need the backing of a mortgage to buy.

Up until recently, there was no guarantee that a property’s freeholder would grant a lease extension, but there is now a statutory right for all leaseholders to extend. This means anyone who has lived in the property for 2 years can purchase a lease extension at fair market value, but it is also possible to seek an informal lease extension. This can be negotiated between the leaseholder and the freeholder and can reduce costs for both sides. Many property developers will arrange an informal lease extension with a property’s freeholder before proceeding with the purchase, as well as negotiating a reduced cost.

Lease extensions can cost anything upwards of six figures, especially for a very short lease on valuable property, which makes finance necessary and Bridging Loans, in particular, ideally suited to this purpose. What makes Bridging Loans so useful is that they can be secured on assets that mortgages cannot use, including property with a short lease. This means that someone looking to purchase a lease extension can secure the funding they need to begin the leasehold renewal process.

Once the lease is renewed, the property will soar in value and become mortgagable - providing a cost-effective way to pay off the bridge.

Buying at Auction

Properties which cannot be mortgaged - including short-lease properties - are often purchased at auction. They must be paid for in full within 30 days. A Bridging Loan can help and may go from application to approval in 24 hours, with funds ready for drawdown shortly afterwards. The loan can cover both the purchase of the property and the cost of renewing the leasehold. The buyer can then complete the lease extension process and arrange a mainstream mortgage to repay the Bridging Loan.

What do Bridging Loans cost?

Short-term finance always costs more than long-term lending. Bridging Loans, therefore, have a relatively high cost and are intended to be repaid quickly, either by the sale of the property or by refinancing with a long-term finance product, such as a mortgage. They usually can cover around 70% of the total value of the property they are secured on.

However, in some circumstances, it is possible to arrange 100% Bridging Loans.

The interest rates that lenders charge will vary depending on both your circumstances and your business, and, of course,  the deal to be funded. Current rates can range from 0.7-1.5% per month, with even higher rates for more difficult propositions. On top of the monthly interest, most lenders will charge an arrangement fee of between 1-2%. In some cases, an exit fee will also be charged, and there may be surveyors’ and legal fees. It's also essential to remember that, if the loan runs over the agreed term, you will also have substantial penalty fees to pay.

Repayment arrangements can vary for Bridging Finance. In some cases, all fees and interest can be rolled up and settled with a single repayment.

Why you need Rangewell to find the most appropriate Bridging solution for you

Because of the large sums involved in property purchase, even a fraction of a percentage point can make a substantial difference to what you actually pay for a bridge. There are many different lenders who may be prepared to offer funding, but each has their own approach to interest rates and fee arrangements and finding and comparing offers demands an expert eye.  

At Rangewell, we have the expert knowledge that can not only help you secure the funding you need - it can save you a great deal of cash - from initial property purchase and products such as high-value bridging loans all the way through to extending property development finance

We can help you use Bridging Loans as a tactical source of funding for the short-term, and then work to find the most competitive source of long-term funding to replace them.


  • Find a Bridging Finance deal of over £1 million to let a developer secure a townhouse in central London 

  • Found a lender to allow a manufacturing company to buy a warehouse, with a loan secured on their factory

  • Find the most competitive funding arrangement to let a chip shop buy their premises when it came up for sale unexpectedly

  • Help a warehouse owner buy an adjacent property at auction, ensuring scope for growth

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • For property professionals
    Bridging Finance is used as part of an overall funding strategy for professional landlords, investors and property developers as standard.
  • For businesses with property needs
    Bridging Loans can be used to help support all types of property acquisitions, including your own business premises.
  • Profit from leasehold property
    Short-Lease Bridges let you profit from the potential of lease extensions for building values of property.
  • For development
    Bridging Loans are a useful way to provide funding for short-term development projects, which can then be refinanced at a higher value once work is completed.
  • A fast application
    Bridging financiers will take into consideration, amongst other things, your credit profile, the value of the asset, and your exit strategy in ordervto make a decision in the shortest possible time.
  • A single repayment
    In most cases, all fees, interest and charges can be rolled up into a single repayment made at the end of the loan term, when an alternative fund source has been arranged.

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