GO PRO for just £50 at PRFire.com

FREE Press Release Distribution

To post an article, login or create an account |  Post an Article

The Short Lease Mortgage Market Opens its Doors

Posted 23rd February 2010.

Many lenders now realise that some short lease properties are highly valuable to investors and therefore suitable as security for a mortgage. Over the last couple of years more lenders have ventured into this little known market.

Short lease mortgages should be taken in consultation with an expert independent mortgage broker that knows and understands the benefits of the short lease properties. There are only a few brokers that clearly understand the short lease market and have access to the lenders that specialise in this field. If you are looking for a trusted broker you can use Short Lease Mortgages, a number one provider in this field.

Other services include commercial and residential property developmental finance, commercial mortgages and residential and commercial bridging finance.

The types of short lease mortgages that are available are as follows:

Lender 1 – Ultra Short Lease Mortgages
They are available for 3 to 50 years at the start of the mortgage term. They also lend up to 60% of the value of the investment property with lending assessed on income and affordability, this includes taking into consideration the rental income from the property if it will be let. Normally the mortgage will be granted on a repayment basis. This lender only lends on Central London properties such as Mayfair, Belgravia, Chelsea, Knightsbridge, Bayswater, Hype Park, Victoria, Pimlico and other prime areas.

Lender 2 Criteria – Short Lease Mortgages
This lender insists that the lease has 10 years remaining at the end of the mortgage term and they offer up 90 per cent loan to value on a residential basis and up to 75% Loan to Value for investment property. This type of loan is granted on the basis of income and affordability, this loan also applies to Central London along with other specific restrictions within these regions also.

Lender 3 Criteria
They lend on the basis that the lease will have 25 years left at the end of the mortgage term and carry up to 90 per cent to value. They have no restrictions on property location and the whole of UK are subject to its valuation. When you are applying for short lease mortgages you get the benefits of earning attractive capital gains in a very short time frame if you select the right property. There are many desirable properties in Central London that have the potential to churn out good returns in both the short and the long run. When you apply to Short Lease Mortgages you get the benefits of a number of banks that do not have any problems with the lending of properties in London. The rates of this short lease mortgages are from 1.5% over Libor and the. Both companies and individuals are eligible for applying and this provision also extends to non resident UK residents too.

http://www.shortleasemortgages.co.uk