Leek United Building Society became the latest lender to to change their requirements concerning the unexpired term of a lease offered as security.
The change to the lender’s BSA mortgage instructions took place yesterday. The significant adjustment is as follows :
Former requirement : '50 years plus mortgage term'
New requirement : '75 years plus mortgage term'
Based on an average mortgage term of 25 years Leek United Building Society are essentially setting the bar at 100 years remaining on a lease.
Leek United are just one an increasing number lenders to amend their minimum lease term requirements in 2016. Twenty lenders changed their lease term requirements in 2015.
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