Short Lease Mortgages

Clients frequently approach us to arrange a mortgage or remortgage on a house or a flat with a short lease.

Generally speaking, lenders typically consider leases of 70 years and below as “short leases”, however this does vary from lender to lender with some able to consider leases as short of 11 years at the end of the mortgage term for Central London properties.

Lenders often tell us that they are not keen to lend on properties with short leases as the property could be more difficult to sell in the future when compared to a longer leasehold or freehold property. Additionally, they say that the short lease may affect the value of the property in the future as the lease gets shorter.

Clients that typically approach us to assist with a mortgage or remortgage on a short lease property state that they have had some difficulties with either their bank or mortgage lenders they have spoken to due to the current length of the lease on a property.