Mortgage on a Short Lease Flat: What Lease Length Triggers a Decline

A mortgage on a short lease flat can be challenging, and in some cases impossible, depending on how many years remain on the lease. Lenders view lease length as a key risk factor because it affects property value, saleability, and long-term security.

This guide explains how lenders assess lease length, the common thresholds that trigger concern or decline, and what options may still be available if a lease is considered short.

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What is classed as a short lease?

Short answer: there is no single definition, but risk increases as the lease shortens.

Expanded explanation:
A leasehold property reduces in value as the lease term runs down. At certain points, this decline accelerates, making the flat harder to sell or remortgage. Lenders focus on whether the lease will remain long enough for the duration of the mortgage and beyond.

In practice, anything below certain thresholds is treated with increasing caution.

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What lease length do most lenders require?

Short answer: many lenders want at least 70–85 years remaining at the start.

Expanded explanation:
Typical lender expectations include:

• A minimum lease length at completion
• A minimum number of years remaining at the end of the mortgage term

Many lenders want:

• At least 70–75 years remaining now, and
• At least 30–40 years remaining at the end of the mortgage

If either condition is not met, the application may be declined.

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What lease length commonly triggers a decline?

While policies vary, common trigger points include:

• Below 80 years: increased scrutiny and limited lender choice
• Below 70 years: many mainstream lenders decline
• Below 60 years: very restricted options, usually specialist lenders only
• Below 50 years: often unmortgageable in practice

Once a lease drops below 80 years, the cost of extending it typically increases significantly, which also affects lender appetite.

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Why is 80 years such an important threshold?

Short answer: because lease extension costs rise sharply.

Expanded explanation:
Below 80 years, lease extensions often involve additional premiums that significantly increase cost. Lenders are aware of this and factor in:

• Reduced property value
• Higher future costs for the owner
• Difficulty selling or remortgaging later

This makes leases under 80 years less attractive from a lending perspective.

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Can you get a mortgage with a lease under 70 years?

Short answer: sometimes, but options are limited.

Expanded explanation:
Some lenders may consider leases under 70 years if:

• The loan-to-value is low
• A lease extension is agreed or in progress
• The borrower has strong income and credit

However, rates, deposits, and terms are usually less favourable, and many high street lenders will not proceed at all.

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What if the lease will be extended?

This can make a significant difference.

Lenders may be more flexible if:

• A formal lease extension is completed before completion
• There is a legally binding agreement to extend
• The seller completes the extension as part of the sale

Verbal assurances are rarely enough. Lenders typically require written evidence or completion prior to lending.

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How does lease length affect remortgaging?

Remortgaging can be harder than expected.

Short answer: options reduce as the lease shortens.

Expanded explanation:
If the lease has fallen below a lender’s minimum since purchase, remortgaging may be declined. Some borrowers remain with their existing lender because:

• A new valuation is not required
• The lender already holds the risk

Switching lenders is often more difficult than staying put.

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Does lease length affect deposit requirements?

Yes.

Shorter leases often mean:

• Lower maximum loan-to-value
• Larger deposits required
• More conservative valuations

Some lenders may value the property lower for lending purposes than its market sale price.

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Are specialist lenders an option?

In some cases, yes.

Specialist lenders may:

• Accept shorter lease terms
• Apply higher rates or fees
• Require larger deposits

These options are not suitable for everyone, but they may provide a route where mainstream lenders will not lend.

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What documents do lenders usually check?

Lenders typically require:

• A copy of the lease
• Confirmation of years remaining
• Valuation reports
• Evidence of any planned lease extension

Delays or uncertainty around documentation can result in declines even where the lease length is borderline acceptable.

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Key points to understand before applying

• Lease length is a core lending risk
• Below 80 years triggers increased scrutiny
• Below 70 years significantly reduces options
• Lease extensions can improve eligibility
• Remortgaging is often harder than buying

Understanding lease length early can help avoid wasted applications and unexpected declines.

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This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.