Historical mortgage-lender article
This article records New Life Mortgages’ approach to unexpired lease terms in 2016. It should not be relied upon as a statement of current lender policy.
For current practical discussion of short leases and future mortgageability, read Short Lease: Extend Now or Wait for Reform?
Historical minimum lease-term requirements can be researched using the Lexsure Lender Archive short-lease page.
Owners experiencing difficulty selling or remortgaging can consult the When I Bought short-lease guide.
New Life Mortgages is the latest of a number of lenders who have changed their CML Handbook requirement relating to unexpired lease terms (section 5.14.1).
The new requirement reads :
“Leasehold remaining term plus the age of the youngest borrower at completion must be at least 185 years”.
A novel approach. Interested to see if others follow the same logic.
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