subject: Mortgage Guidelines for Your Lease Extension [print this page] Mortgage Guidelines for Your Lease Extension
If you decide to sell your leasehold apartment, you need to check how many years are left on it. If the amount has fallen below 70 years then you need to think about getting an extension.You're still feeling confused? Well, it's probably fair to say that most of us mortals need the help of a high street lender when buying a property or home. So you still don't understand and therefore say 'What is the issue?'The underlying issue that you need to address is that very few lenders are prepared to offer a loan for a flat where the lease has fallen below 70 years.To make things more complex, banks and building societies have different and varying policies on how long your lease needs to be before they will agree to make you a loan. It is worth approaching different mortgagors and asking 'What is the minimum unexpired leasehold term do you lend to?' and you'll get a variety of answers. Below are 8 different examples we found:1. Nationwide Building SocietyThe minimum unexpired lease term is 55 years subject to at least 30 years remaining at the end of the mortgage term.2. Coventry Building SocietyWhen extending a lease, a minimum of 70 years unexpired lease is required.3. Bristol & WestA 70 year lease is minimum unexpired term for leasehold extension.4. Abbey National plcIn most cases the minimum unexpired lease term is 55 years unexpired from completion subject to at least 30 years remaining at the end of the mortgage term. However if it turns out that the unexpired term from completion is actually between 55-70 years and firstly, this was not stated in the valuation or secondly, you were not given a valuation, you should seek advice before you proceed any further.5. HalifaxMortgage Term plus 30 years is the criteria here for leasehold extension.6. Bradford & Bingley plcA minimum of 50 years is required here at the commencement of the mortgage and at least 35 years at the end for loaning on leasehold extension or purchase.So you can see that it makes sense to shop around! It is sensible to take active steps towards getting your leasehold extended! This is a difficult and complex area of the law, therefore it is always advisable to retain a specialist leasehold extension solicitor. Find out some important facts and figures and make their jobs a little easier.
