Thursday, 17 December 2015

Leeds Follow Other Lenders Giving Short Leases a Wider Berth

Conveyancers need to take special note of the recent trend in lenders increasing their minimum unexpired lease terms via amendments to section 5.14.1 of Part 2 of the CML Handbook.

If I was still in practice I would definitely be referencing this trend in the report on title sent to clients purchasing leasehold flats with less than 95 years remaining.

Next month Lexure will be publishing their CML Handbook Data Report for 2015. This annual overview of Part 2 changes makes for interesting reading especially the section addressing changes in leasehold requirements. Those wanting to pre-order the report please contact me.  

Leeds Building Society is the latest lender change their minimum lease term requirements.

In a change that would be easy to miss here is the old and new wording:

Old wording : Mortgage term plus 40 years.

New wording : 85 years remaining from the start of the mortgage.

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