Rytvae Consulting · Think Right · Invest Right
Lease Rental Discounting Calculator
Result
Chart
Show formula & working
Discounted rentals = Σ Net rentm ÷ (1 + r)m over the loan tenure (net rent rises by the escalation every few years)
Loan = lower of (Discounted rentals × lender share) and (Property value × LTV)
The tenure is capped at the remaining lease period.Details
How this works
Lease rental discounting lends against the rent a tenant pays under a registered lease. The rent comes into an escrow account and repays the loan.
The lender discounts the rent you will receive over the loan tenure, lends a share of it, and checks the result against the property's value.
Frequently asked questions
Why is the tenure capped by the lease?
Rent after the lease ends is not contracted, so lenders usually keep the loan within the remaining lease period (or the lock-in).
What if the EMI is more than the rent in early years?
That happens when the loan counts future rent increases. Lenders usually keep the EMI within current rent, so they may lend less than the discounted figure.
Planning business borrowing?
Structure, tenure and the right lender matter as much as the rate. Talk to Rytvae before you apply.