FINANCE OPTIONS

^Get Bridging Finance for Lease Extensions Today

Q: What borrowing amount is typical for a lease extension bridge?

For bridging finance for lease extensions, borrowing is commonly structured from around £25,000 up to about £1,000,000. Lenders typically factor in LTV or security value (where applicable), the lease or leasehold risk profile, the stage of the lease extension, and the strength and clarity of your repayment or exit plan.

Q: How long do lease extension bridge decisions usually take?

Initial decisions are often around 5 to 15 business days after full documents are provided. From initial application to drawdown, funds are often available within 2 to 6 weeks, depending on underwriting, valuation or security requirements, and legal completion. Document readiness and complexity can affect timing.

Q: What interest rates apply to these bridging loans?

Bridging pricing in the UK is commonly quoted in the broad range of about 9% to 15% per annum. The exact rate can depend on LTV, security, risk and how certain the repayment exit is. Arrangement fees and other one-off charges may also apply depending on deal structure.

Q: What types of bridging finance are used for lease extensions?

Common types include a lease extension premium bridge, a refinance-readiness bridge, and a rent-and-works lease extension top-up. The right option depends on what the bridge needs to fund, the stage of the lease extension, and how and when you plan to repay, such as refinancing completion or other exit routes.

Bridging finance for lease extensions is short-term lending designed to help a business fund costs or required payments tied to extending a commercial lease. It can cover items such as a lease extension premium, licence fees, legal costs, rent-related payments, or refurbishment needed to secure the extension. Many SMEs use this kind of bridging loans to keep negotiations moving and avoid urgent cash calls while they arrange a longer-term funding route. The intention is usually to repay once a refinance, sale or other exit becomes available, rather than spreading the cost over a long amortisation period.

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^Benefits of a lease extension bridge

Funding a lease extension often comes with tight timelines and specific cash milestones. A bridging finance loan for lease extensions is built for that gap. Below are the core reasons businesses typically choose a bridge, how the cost is usually structured, and what lenders often consider during turnaround.

Keeps the lease deal moving

Interest-led, time-limited structure

Bridge to refinance or completion

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of lease extension bridging

Lease extension premium bridge

Use this when you need funds mainly for the lease extension premium and related professional costs. Lenders typically expect evidence of the extension agreement and a credible exit, such as refinancing after completion.

Lease extension premium bridge

A lease extension premium bridge is usually sized to cover the premium and solicitor or adviser estimates of the required payments. Typical amounts range from £25,000 to £500,000, and terms are often set between 3 and 18 months, aiming to end around your expected refinance or completion date. Decision times are often around 5 to 15 business days after full documents. Market pricing is often quoted in the broad range of about 9% to 15% per annum, depending on LTV, security, and how certain the exit is.

Refinance-readiness bridge

Choose this if the extension is a gating step for a future remortgage or longer-term secured facility, and you need time for that longer-term funding to become available.

Refinance-readiness bridge

A refinance-readiness bridge is designed to help you reach the point where lenders will support a longer-term product. Typical amounts range from £50,000 to £1,000,000, with terms commonly lasting 6 to 24 months to match the plan for refinancing completion. Decisions are often 1 to 3 weeks once full information is provided, and can take longer where valuation or legal complexity is involved. As with other bridges, pricing is broadly in the 9% to 15% per annum range, influenced by LTV, property or lease risk, speed needs, and repayment certainty.

Rent-and-works lease extension top-up

This type covers more than the premium. It can help with rent-related payments, deposits, legal costs, and short-term refurbishment needed to keep the extension progressing.

Rent-and-works lease extension top-up

Where cashflow and works matter during the extension process, a rent-and-works lease extension top-up can fund the additional lease-related spend. Typical amounts range from £20,000 to £300,000, and terms are often 3 to 12 months, or until extension completion and associated works. Decision times are commonly 5 to 20 business days after documents, with verification of the works scope sometimes extending timelines. Pricing is usually within the same broad bridging range of about 9% to 15% per annum, and one-off fees and staged drawdown conditions may apply.

Typical Funding Journeys on Funding Agent

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Your request is matched to suitable lenders

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How to get a lease extension bridge with Funding Agent

Share lease details and exit plan

Tell us the property and lease details, what the bridge will fund, the lease extension deadline, and when you expect repayment. For example, outline your refinance completion date or the sale or drawdown route you will use to clear the bridge.

We match you to suitable lenders

We assess your case against lender criteria including trading and credit profile, affordability to service interest, and the feasibility of your exit. Based on that, we present bridging terms aligned to the lease extension stage and your expected timeline.

Submit the document pack

We help you compile a lender-style underwriting pack. This usually includes accounts or tax returns, bank statements, identification and beneficial ownership details, cost breakdowns for the extension, and lease or property documentation. After lender agreement, legal and security checks follow.