Table of Content
Yes, you can mortgage a short-lease flat — but criteria are tighter. Lenders set minimum years left both at application and at the end of the mortgage term, and they’ll scrutinise valuation comments, ground rent clauses and service charges. We’ll outline what lenders want to see, how to extend (informal vs Section 42/assignment on purchase), and when buying short makes sense if the price fairly reflects extension costs and timing.
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Minimum Lease Terms for Mortgages
When lenders assess a leasehold flat, they run two separate checks on the lease length. First is the minimum years required at application. Second is the minimum years that must still remain at the end of the mortgage term.
Both must be met. For example, on a 25-year mortgage: if a lender needs at least 30 years remaining at the end of the term, the lease must be at least 55 years at application (25 + 30). That same lender may also have a separate minimum-at-application rule (say 75 years). In that case, you have to satisfy the higher of the two tests — here, 75 years — and still meet the end-of-term calculation.
Use the tables below to cross-reference both rules for each lender. Even if the maths works, decisions are still subject to the valuer’s comments on saleability and the lease terms (e.g. ground rent and service charges).
Minimum Lease Remaining at Application
Most lenders set a minimum lease length at application (e.g. 70–85 years). However, some will relax this rule if the lease is being extended as part of the purchase.
| Minimum Lease Remaining | Lenders |
|---|---|
| 30 years | HSBC |
| 33 years | NatWest |
| 40 years | Vida Homeloans, United Trust Bank |
| 41 years | Harpenden BS |
| 55 years | Family BS, Bluestone Mortgages, Ecology BS, Mansfield BS, Kent Reliance, Metro Bank, Santander, Nationwide BS |
| 65 years | Saffron for Intermediaries, Cambridge BS, West Brom BS, LendInvest |
| 70 years | Halifax, MPowered Mortgages, Kensington Mortgages, Gatehouse Bank, TSB, Norton Home Loans, Coventry BS, Barclays, Precise Mortgages |
| 75 years | Tandem Bank, Progressive BS, Melton BS |
| 80 years | Atom Bank, Monmouthshire BS, Leek BS, Teachers BS |
| 85 years | Cumberland BS, Leeds BS, Penrith BS, Stafford BS, Tipton BS, Bank of Ireland, Aldermore, Accord Mortgages, Marsden BS, Dudley BS, Perenna, Hodge, Nottingham BS, Newcastle for Intermediaries, Hanley Economic BS, Suffolk BS, Clydesdale Bank, Buckinghamshire BS, Gen H, Darlington Intermediaries, Principality BS, Furness BS, Newbury BS, Virgin Money, Vernon BS, The Co-operative (Intermediaries), Bespoke BOI, Hinckley & Rugby BS, Pepper Money, April Mortgages, The Loughborough BS, Skipton BS |
Minimum Lease Remaining at End of Term
| Minimum Lease Remaining | Lenders |
|---|---|
| 30 years | Santander, Kensington Mortgages, NatWest, Halifax, TSB |
| 35 years | Precise Mortgages |
| 40 years | Earl Shilton BS, Teachers BS, Gatehouse Bank, Monmouthshire BS, Norton Home Loans, United Trust Bank, Vida Homeloans |
| 45 years | Nottingham BS, Bespoke BOI, Clydesdale Bank, Principality BS, Suffolk BS, Bank of Ireland, Newcastle for Intermediaries, Leeds BS, The Co-operative (Intermediaries), April Mortgages, Aldermore |
| 50 years | The Mortgage Lender, Foundation Home Loans, Kent Reliance, Buckinghamshire BS, Together, Ecology BS, Vernon BS, Atom Bank, Metro Bank, Nationwide BS, Swansea BS, Virgin Money, Harpenden BS, Scottish BS, Accord Mortgages, Progressive BS, Gen H, Pepper Money, HSBC, Bath BS, Hinckley & Rugby BS, Mansfield BS, Bluestone Mortgages, Central Trust Ltd, Family BS, Market Harborough BS, Cumberland BS, Darlington Intermediaries |
| 55 years | Furness BS, West One Loans, Newbury BS, Marsden BS |
| 60 years | West Brom BS |
| Not specified / N/A | Barclays (Scotland only), Beverley BS |
What is determined as a short Lease?
There’s no single definition, because it depends on context: what lenders will accept, what buyers are comfortable with, and how easy it is to extend. Share of freehold flats often feel less “short” in practice because extending is usually simpler and cheaper.
A few common markers:
- Below 80 years: marriage value applies, pushing up the cost of extension.
- Around 85 years: a frequent minimum used by many lenders at application.
- Long view matters: you might buy at 90 years today, but if you plan to sell in 10 years you could be marketing a short lease. Think ahead about your likely ownership period.
- Some leases run to 999 years, so lease length won’t be a practical issue in anyone’s lifetime.
Bottom line: a short lease isn’t always a deal-breaker if you can secure a mortgage and you’ve priced in the cost and timing of an extension. Negotiating the purchase price to reflect the lease, or arranging an extension route up front, can turn a tricky lease into a sensible buy.
Short Lease: Leasehold vs Share of Freehold
Not all short leases are equal. How “short” feels — and what it costs to fix — depends on the property’s tenure. A flat with a standard leasehold can be very different to one with share of freehold, because extending the lease is usually quicker, cheaper and more within your control when you co-own the freehold. The chart below highlights the key differences so you can judge cost, process and lender friendliness at a glance.
| Topic | Short lease on leasehold | Short lease on share of freehold |
|---|---|---|
| Who controls extensions | Freeholder sets price/terms; you negotiate or use Section 42 | Co-freeholders (including you) can grant themselves longer leases at low premium (often just legal/admin costs) |
| Typical cost | Can be expensive, especially under 80 years due to marriage value | Usually far cheaper; many extend to 999 years with peppercorn ground rent |
| Speed and process | Formal statutory route (serve Section 42) or informal deal; 2-year ownership needed unless seller assigns notice | No 2-year wait needed; company/RTM or co-freeholders agree and complete via solicitors |
| Ground rent | May have escalating clauses lenders dislike | Common to reduce to peppercorn on extension |
| Lender view | Stricter: must meet minimum years at application and end of term; valuer focuses on saleability | Same tests still apply, but lenders and valuers are generally more relaxed once an easy, planned extension is shown |
| Risks/downsides | Higher premium, more time, less control over freeholder | Needs co-freeholder cooperation and good building admin; paperwork must be done properly |
How to Extend a Lease (You Already Own the Flat)
- Check your lease length and ground rent
- Get a specialist lease extension valuation (RICS surveyor)
- Choose route
– Statutory Section 42 (strong protections, 90 extra years, peppercorn ground rent, must have owned for 2+ years)
– Informal deal with freeholder (quicker, but terms and price are negotiable) - Instruct a solicitor experienced in lease extensions
- Budget for: premium, your legal/valuation fees, and the freeholder’s reasonable costs
- Complete the new lease and register it at Land Registry
Tips: below 80 years, marriage value increases the premium; act early. Aim for peppercorn ground rent and a long term (e.g. 990/999 years) if negotiating informally.
How to Buy a Flat and Extend the Lease During the Purchase
- Ask the seller to start the extension now
– Seller serves a Section 42 notice before exchange
– The notice is assigned to you on completion, so you don’t have to wait 2 years - Build the numbers into the deal
– Agree who pays the premium and fees (often reflected in the price)
– Get a valuer’s estimate so you’re not guessing - Put it in the contract
– Your solicitor includes assignment wording and timelines
– Lender is told the plan; some want the lease extended before or immediately after completion - Complete the purchase, then finish the extension
– You take over the claim, agree the premium and terms, and complete the new lease
– Register the extended lease at Land Registry
If a Section 42 assignment isn’t possible, consider an informal extension agreed in principle before exchange, with clear terms: long new term, peppercorn ground rent, and no onerous clauses.
Outstanding service and clear communication are at the core of what we do. But don’t just take our word for it—read firsthand experiences from our clients and discover why they rate us a 5-star mortgage broker.
Informal vs Statutory Lease Extensions
Informal extensions are a private deal with the freeholder. They can be quicker and sometimes cheaper upfront, but terms are negotiable: you don’t automatically get a long term, peppercorn ground rent, or lender-friendly clauses. You’ll need your own valuation, a clear heads of terms, and a solicitor who will push for a long extension (ideally 990/999 years) and peppercorn ground rent, with no new onerous clauses.
Statutory extensions (Section 42) are set in law. Once eligible, you get an extra 90 years added to the current term and ground rent reduced to peppercorn. The price is determined by a formula and can be settled by tribunal if needed. It’s slower and has more formal steps, but the outcome is predictable and lender-friendly. If you’re buying now, ask the seller to serve a Section 42 and assign it to you on completion so you don’t have to wait two years.
WWhat Are the Lease Rules on New Builds?
New builds are tightly policed by lenders and developers. Most mainstream lenders expect very long leases at completion and peppercorn ground rent (or strict caps). Service charge transparency and fair clauses are essential. Some developers still market short or escalating ground rent leases — lenders often decline these. For lender preferences and common pitfalls, see our guide to the best new-build mortgage lenders.
Funding a Lease Extension
There are three common routes: savings or family help, a remortgage (often once the extension completes, which can also improve your rate), or a further advance with your existing lender if available. We cover pros, cons, timing and paperwork in our guide to remortgaging to extend a lease. Tip: plan funding alongside conveyancing so your lender, solicitor and valuer are aligned on the sequence.
How Much Does a Lease Extension Cost?
Costs depend on years remaining, property value, ground rent terms, and whether the lease is under 80 years (marriage value applies). Use the official calculator as a sense-check via the Leasehold Advisory Service’s lease extension calculator. Remember to add professional fees: valuation, your solicitor, and the freeholder’s reasonable legal and valuation costs.
Other Considerations When Extending
A lease extension is a great moment to tidy the lease:
- Reduce ground rent to peppercorn
- Remove or soften onerous clauses (doubling rents, unreasonable consents or fees)
- Ensure service charge provisions are clear and fair
- Align terms with lender expectations so future buyers and remortgages are easier
Your solicitor should audit the lease and request sensible variations as part of the extension.
Should You Extend the Lease Before Selling?
If the lease is short, many buyers won’t get a mortgage, shrinking your pool to cash buyers who tend to offer less. Extending first (or marketing with a served and assignable Section 42) usually boosts saleability and price. If speed is your priority and the discount is acceptable, you can sell short—but price it realistically.
Who Are the Best Mortgage Lenders for Short Leases?
It depends on two moving parts: how long the lease will be at application and how many years will remain at the end of the mortgage term. Different lenders set different thresholds. Use the tables further above to rule in or out suitable lenders, then weigh rate, fees, affordability and property specifics. Criteria change, and valuer comments can trump policy—there’s no substitute for tailored advice.
Should I Buy a Property With a Short Lease?
It depends on what you call “short,” whether you plan to extend, and if you can fund the extension.
Things to weigh up:
- Your plan to extend
If you’ll extend soon, a short lease can be fine — as long as the numbers stack up. Below 80 years, marriage value increases the cost, so factor that in. - Can the seller start the extension?
Best case: the seller serves a Section 42 notice and assigns it to you on completion, so you don’t have to wait two years as the new owner. They can often use sale proceeds to pay, saving you the hassle of finding cash up front. - Cash flow and timing
If you extend after you buy, you’ll need the funds and you’ll handle the paperwork. Doing it via the seller during the purchase can save time, admin and short-term cash strain. - Lender criteria and valuation
You must meet both tests: minimum years at application and minimum years left at the end of the mortgage term. Even if you meet the numbers, the valuer has to view the flat as readily saleable. - How long you’ll stay
If you’ll move on quickly, long-term lease length matters less — but make sure you won’t be selling a much shorter lease in a few years. Today’s 90 years can become 80 in a decade. - Price negotiation
Always negotiate the purchase price to reflect the cost of the extension, marriage value (if applicable), professional fees, and the time/effort involved. - Share of freehold nuance
With share of freehold, lease extensions are usually simpler and cheaper, so “short” often bites less hard — but still run the numbers.
Bottom line: buying a short lease can be a smart move if you can either extend during the purchase (via an assigned Section 42) or you’ve budgeted realistically to extend soon after. If the price fairly reflects the lease position and the lender is happy, it doesn’t have to be a deal-breaker.
How Strive Can Help
Short-lease mortgages need the right lender, the right product, and a clean plan. We’re whole of market and know which lenders are flexible on lease length, ground rent and property type — and which aren’t.
What you get with us:
- Clear, upfront view of which lenders will consider your lease length today and at end of term
- Side-by-side product and affordability comparisons to maximise what you can borrow sensibly
- Advice on deposit, term and structure to keep options open for future remortgages
- Hands-on support with paperwork and valuation so the case lands well with the lender
- Fast answers and a single point of contact from enquiry to offer
If you want a quick sense check, share the lease years remaining, ground rent and your target mortgage term — we’ll tell you where you stand and the smartest route forward.
Speak to short lease mortgages expert for the best deal.
Want more detail?
For a deeper dive into ground rent, service charges, and flat-specific lender rules, read our full guide to leasehold mortgages.
FAQs
Yes, you can, but your options may be limited, and you might be required to provide a larger deposit or seek a specialist lender.
While there isn’t a one-size-fits-all answer, most lenders prefer that a property’s lease has at least 30 years remaining at the end of the mortgage term. Leases under 50 years can present significant challenges.
It depends on several factors, including the purchase price, anticipated lease extension costs, and your long-term plans for the property.
Yes, you generally can, although statutory lease extension rights typically come into effect after you’ve owned the property for two years.
Absolutely. Working with a solicitor who specialises in lease extensions is highly recommended to ensure you secure the best possible terms.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
