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  • Mortgages & Finance

    Mortgage on short leasehold property

    Hi

    Is it possible to get a mortgage on a leasehold flat with only 50 years remaining on lease

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    No, it will be a cash purchase only.  Lenders generally won't mortgage a property with a lease of less than 80 years.

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    I already have the property but the mortgage with CHL runs out in 2021

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    There are of lenders on the market that will accept as low as 50 years (I'm assuming its for BTL)

    However, I would advise extending the lease first, it will help to open all the right doors.

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    Financial Consultant working with Property Tribes Financial Services.

    BTL Specialists.

    Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - austyn@ptfs.co.uk     07500 871209


    Hi

    I would agree with you but I have been advised by Louie Burns from the Leasehold Knowledge Partnership to leave it for a while so hopefully the Government can sort out new Leasehold reforms. At the moment it could cost up to £20k to extend the lease, this could come down considerably after reforms

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    I am also doing the same. At the moment everything is stacked in the favor of the FH's, so any change will be welcomed. Should know more by end of the year ..... apparently

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    As a general rule, the longer you leave it before you extend the lease, the more expensive it will be for you - so you should consider further delay carefully

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    With the uncertainty of who will be Prime Minister and for how long, Leasehold reforms are going to be low on the list of government priorities.  I suggest you at least enquire about the cost and remember that you can ask for an independent adjudication of any renewal fee.  You'll get a much better mortgage deal and increase the value of the property all of which are certainties, where as struggling to find a more expensive mortgage offer on the chance that government makes a favourable change to the law seems to me to be a poor gamble.
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    I have had a valuation done on the lease extension. The problem is the difference between best and worst case scenario is 100% ie between £10k and £20k plus both sides legal costs etc. As I said Louie Burns has advised me hold on for the moment

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    Hello there

    there are a few lenders who may consider a lease of this length, but the valuation of the property will be affected as it is essentially losing value for every year the lease shortens.  If you would like to get some options, please do feel free to drop me a line - jenib@mortgagesforbusiness.co.uk.

    Thanks, Jeni

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    Mortgages For Business is a commercial partner of Property Tribes.

    Email: propertytribes@mortgagesforbusiness.co.uk

    Telephone number: 0345 415 3501

    You are expecting any sort of reform to happen quickly or on time?
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    Omega Property (Formerly SBS Ltd.)

    I am not professionally trained to give advice, generally posting for the benefit of the community or my own personal development.