The product will finance properties with terms of between 10 and 70 years as well as lease extensions.
Loans will be available up to 70% loan to value for terms of three to 12 months, with interest rates starting at 0.99% per month.
The product comes with a 2% arrangement fee but has no early redemption charges or exit fees. Funding 365 said it wanted to fill a gap in the short-term lending market and had developed the product after consulting its brokers.
Sales director Paul Weitzkorn, who joined the firm in September, said: “Funding 365 has always worked with its broker partners to develop bespoke financing solutions for complex and non-standard scenarios. Now, our commitment to lend on short leases and fund lease extension provides borrowers with flexibility in a world where lease extension timing can be uncertain.”
Director Mike Strange added: “Launching this new short lease product also demonstrates Funding 365’s flexibility in financing unusual or complicated property transactions.”