Short Lease Mortgages
Short lease mortgages for leasehold properties with less than 85 years remaining - from specialist lenders who will advance on shorter leases with appropriate conditions - and lease extension finance to restore mortgageability.
When short leases block standard mortgages
Most standard mortgage lenders require a minimum unexpired lease term of 85 years at the start of the mortgage and will not advance where the lease will fall below 70-75 years during the mortgage term. A property with 74 years remaining on its lease is automatically declined by the majority of mainstream lenders. Specialist short lease lenders have more flexible criteria - and bridging finance can fund the purchase while a lease extension is negotiated.
Every short lease scenario resolved
Short Lease Specialist Mortgages
Some specialist lenders advance mortgages on leases from 70 years, subject to conditions. The shorter the lease, the smaller the lender panel. We identify which specialist lenders are active in the specific lease length range for your property.
Lease Extension Finance
Bridging finance funds the purchase of a short lease property while a formal lease extension is negotiated. Once the lease is extended above the mainstream threshold, the bridge exits to a standard mortgage. We arrange both legs simultaneously.
Section 42 Notice Service
A tenant served with Section 42 notice - notifying the landlord of the intention to extend the lease - can proceed with a statutory lease extension. We advise on the mortgage implications of the extension process timeline.
Ground Rent Assessment
Leases with onerous ground rent terms - doubling ground rent, RPI-linked ground rent, or ground rent above 0.1% of the property value - create additional mortgage restrictions beyond the lease length issue. Specialist lenders assess each ground rent term individually.
Flats With Short Leases
Short lease issues are most common in flats and maisonettes. The specialist lease assessment process must also consider the management company, service charge position, and building insurance as part of the overall mortgage assessment.
Unmortgageable Lease Resolution
Leases below 70 years are effectively unmortgageable with most lenders. A purchase at below-market-value with bridging finance, followed by statutory lease extension and remortgage to a standard mortgage, is the standard resolution strategy.
How it works
Lease and property details
Tell us the current unexpired lease term, ground rent terms, and the purchase price or current mortgage position. We assess the lease situation and identify the most appropriate strategy.
Strategy selection
Short lease specialist mortgage where viable, or bridging finance for purchase with lease extension in parallel. We model both options and recommend the most cost-effective route.
Application - mortgage or bridge
We manage the mortgage application to the specialist short lease lender, or the bridging application and the lease extension process in parallel.
Completion and exit
For bridging with lease extension: completion of the purchase on the bridge, then lease extension negotiation, then remortgage to a standard product. We manage all stages.
Dealing with a short lease property?
Tell us the unexpired term and the property details. We identify the right strategy - same working day response.
Frequently asked questions
What is the minimum lease length for a mortgage?
Most standard lenders require 85 years unexpired at the start of the mortgage. Some specialist lenders advance on leases from 70 years. Below 70 years, bridging finance with a lease extension strategy is typically the appropriate route.
Can I extend a lease before buying a property?
The right to extend a lease as a new buyer is complex - the Section 42 notice right belongs to the tenant, not the buyer. The vendor can serve notice before the sale and assign the benefit to the buyer. A specialist solicitor is essential for this process.
What ground rent terms affect mortgage eligibility?
Ground rents that double every 10 years, are linked to RPI without a cap, or exceed 0.1% of the property value create mortgage restrictions for many lenders. The Leasehold Reform (Ground Rent) Act 2022 restricted new lease ground rents to a nominal level - but older leases with onerous terms remain a challenge.
Can I get a mortgage on a flat with a 75-year lease?
Yes - from specialist short lease lenders. The lender panel is narrower than for longer leases and the mortgage conditions may include a requirement to extend the lease before a specified date. We identify which specialists are active in this lease length range.
What is lease extension bridging finance?
Bridging finance funds the purchase of a property with a short lease while a formal lease extension is negotiated - a process that can take 12 to 18 months. Once the lease is extended above the mainstream mortgage threshold, the bridge exits to a standard mortgage.