You may be able to use a lease as security if it has intrinsic value - where you will be paying a premium for the lease. (By contrast, a lease at open market rental value with no initial premium has no value as security for a loan.) Bear in mind that, unlike freehold premises, the value of a lease as security will fall steeply over time.
If you do plan to use a lease as security, you should discuss this with your bank at an early stage and ensure that the forfeiture provisions in the lease are amended to allow the property to be mortgaged.
