Tuesday, 6 September 2016

Are Lenders Looking to Shut the Door on Leasehold Property?

logo icon for Leek United BS

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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