Bridging finance facilitates lease extension on St John’s Wood flat
Original Article Summary
A property investor has secured £1,462,500 in bridging finance from SDKA to purchase a three-bedroom apartment in St John's Wood, using the loan term to pursue a Section 42 lease extension. The strategy aims to reduce ground rent and expand refinancing options with buy-to-let lenders. The post Bridging finance facilitates lease extension on St John’s Wood flat appeared first on PropertyWire.
PropMatch Curated Analysis
A London investor used £1.46m bridging finance at 75% LTV to acquire a St John's Wood flat with a high ground rent, using the bridge term to serve a Section 42 notice and extend the lease — thereby broadening eligible BTL lender options for refinancing. The case illustrates how bridging can be deployed as a strategic tool to resolve leasehold lending barriers.
Investor Relevance
This case is directly relevant to investors acquiring or holding leasehold flats with high ground rent, a widespread issue in London and other urban markets following post-2019 mortgage lender tightening. It signals a viable strategy — bridge-to-lease-extension — that can unlock refinancing options and improve asset liquidity, particularly for higher-value leasehold properties where conventional BTL lending is restricted.
Original Source:
PropertyWireStay Updated
Subscribe to our weekly briefings for curated property news and insights