Question 1

What is considered a 'short lease' in the mortgage market?

Accepted Answer

Most high-street lenders consider a lease under 70-80 years to be 'short'. As the lease gets shorter, the property value can decrease, and it becomes harder to secure a traditional mortgage.

Question 2

Can I get a mortgage on a property with a 60-year lease?

Accepted Answer

Yes, but you will likely need a specialist lender. We work with lenders who can consider leases as short as 40-50 years, often with the requirement that a lease extension is started as part of the purchase.

Question 3

Why do lenders care about lease length?

Accepted Answer

Lenders want to ensure the property remains marketable and maintains its value throughout the mortgage term. A very short lease makes the property harder to sell, which increases the lender's risk.

Question 4

How much does it cost to extend a lease?

Accepted Answer

The cost varies significantly based on the property value, the ground rent, and how many years are left. Generally, the shorter the lease, the more expensive it is to extend, especially once it drops below 80 years.

Question 5

What is the 'marriage value' in lease extensions?

Accepted Answer

Marriage value is an extra cost paid to the freeholder when extending a lease that has less than 80 years remaining. This is why it is almost always better to extend a lease before it hits the 80-year mark.

Short Lease Mortgages

Navigating Leasehold Challenges

Leases Under 70 Years

Lease Extension Support

Securing a Short Lease Mortgage

Lease Audit

Extension Strategy

Specialist Sourcing

Completion

Frequently Asked Questions