How LRD works
The lender looks at the rent the property will earn over the remaining lease, the quality of the tenants, the lease terms and the value of the property. The loan is repaid from the rentals, which are usually routed through an account the lender monitors. The stronger and longer the leases, the more a lender is willing to lend and the better the terms.
What we do
- Review the lease profile. We look at tenants, lease tenure, lock-in and escalation terms just like a lender.
- Size the facility. We size it to the rental cash flows and the property's value.
- Choose the lender. We approach the lenders most active in LRD for that kind of asset and tenant.
- Negotiate terms. We work for terms that fit your plans for the asset.
- Run the course. We stay in the detail through documentation, disbursement till loan closure.
Related: loan against property
If a property is owned and self-occupied rather than leased, a loan against property may fit better. Eligibility is assessed on the asset's value together with the borrower's income profile. See our services.
Why owners work with Raintree
We are ex-bankers with over three decades of combined experience in corporate credit and real estate. Lenders prioritise our proposal as it comes pre-filtered, which reduces turnaround time. Our fee is success-based: we invoice only on disbursement. Everything you share with us stays confidential.
Common questions
A loan against the future rental income of a leased property. The lender discounts the expected rentals and recovers the loan from them over time.
The rent over the remaining lease, the quality of the tenants, the lease terms and the value of the property.
LRD is based mainly on rental income from tenants. A loan against property is based on the asset's value together with the borrower's income profile.
Our fee is success-based. We invoice only once your facility is disbursed. If the transaction does not close, you pay us nothing.
More questions? Read our funding FAQ.