Leasehold conveyancing solicitors beware : Lenders are changing their minimum lease term requirements.
For the second time in the space of a week a CML lender discarded a whole slice of the leasehold market from being mortgageable for their perspective.
Furness Building Society is the latest lender to tighten their minimum lease term requirements. This recent change is particularly impactful as the lenders has set a minimum lease term of 85 years. This is the first CML lender to set such a requirement. Those attending the recent LENDERmonitor webinar on ‘CML Handbook Trends and Predictions for 2015’ will not be shocked but this will come as a surprise to many conveyancing lawyers who will be hoping that other lenders do not follow suit.
Furness used to accept leases where there was a minimum 55 years unexpired from completion, subject to not less than 30 years remaining at the end of the mortgage term. As of today they now require 85 years unexpired from completion, subject to not less than 55 years remaining at the end of the mortgage term.
Furness Building Society conveyancing panel lawyers should take note. On the upside there may be a possibility for picking up lease extension work.
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