We will lend on:
- Freehold - houses and bungalows
- Leasehold (including good leasehold title)
- Ownership (Scotland)
- Flying Freehold (subject to confirmation from the valuer that the property is suitable security)
England and Wales
Flats and Houses - a minimum unexpired lease of 55 years is required at application with a minimum unexpired lease term of 30 years after mortgage term ends.
Where a new longer lease or lease extension is to be purchased the application will be processed using the details of the new/extended lease.
Flats and Houses - a minimum unexpired lease term of 50 years after mortgage term ends.
Flats - a minimum unexpired lease term of 50 years after mortgage term ends.
Houses - refer to your usual Service Centre.
The valuer must be satisfied that there is a market for any property taking the lease term into consideration. Therefore, even though an application may meet the guidelines above, the property may still be declined by the valuer.
For example, a mortgage application in England for a 20 year term with a 56 year unexpired lease is within policy, but the valuer may advise the property is not readily marketable and saleable and will not consider the property as suitable security.
- Please refer to our new build page for our new build property lease terms including minimum leasehold terms.
Second hand properties
- We expect lease terms to be reasonable and comparable to similar types of property in the immediate market place.
- Where the valuer believes marketability will be severely adversely affected by the lease terms (for example excessive ground rent or onerous review procedures), they may decline the property, or reflect any onerous lease terms in the valuation figure.