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Lease Rental Discounting

Discriptio Pensionis Locatae

Unlock liquidity from commercial property rental income — LRD facilitation with lease vetting, escrow structuring, and lender coordination.

Home Practice Areas Realty Finance Advisory Lease Rental Discounting

What We Do

Lease Rental Discounting (LRD) allows commercial property owners to borrow against future rental income without selling their assets. We facilitate the entire LRD process — from lease agreement vetting and tenant due diligence to lender coordination and escrow structuring. The loan amount is determined by discounting future rental cash flows, typically offering up to 70% of the property's market value.

Our LRD Process

Property valuation and rental income assessment
Lease agreement review — tenure, escalation clauses, lock-in periods
Tenant credit profile evaluation
Title verification and encumbrance check on the property
Lender matching — banks, NBFCs, HFCs offering best LRD terms
Escrow account setup for rent-to-EMI routing
Mortgage documentation and registration

Legal Documentation

Lease deed drafting and review (registered lease mandatory for LRD)
Rent assignment agreements
Escrow and DSRA (Debt Service Reserve Account) structuring
Title opinion for lender
Mortgage deed preparation
NOC and consent documentation

Ideal For

Owners of commercial office spaces, retail properties, warehouses, and industrial sheds with active lease agreements — particularly those leased to corporate tenants, government bodies, or MNCs with strong credit profiles. LRD is also suitable for REITs and HNIs with multi-property commercial portfolios seeking to leverage rental income for expansion.

Related Services

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