Question 1

What is the minimum lease length to get a mortgage?

Accepted Answer

Most lenders require 70–85 years remaining on the lease at the point of application, and many require the lease to have at least 70 years left at the end of the mortgage term. A 25-year mortgage on a flat with 80 years remaining would leave only 55 years at the end — falling below many lenders' minimum. Below 85 years you will face restrictions; below 70 years mainstream lender options become very limited. Extending the lease before completion is the most reliable way to access the full market.

Question 2

How does ground rent affect my mortgage eligibility?

Accepted Answer

The Leasehold Reform (Ground Rent) Act 2022 capped new lease ground rents at peppercorn (zero) from June 2022. However, many existing leases contain doubling or RPI-escalating clauses that lenders assess against their annual rent criterion — most require ground rent under 0.1% of property value per year. Doubling or escalating ground rent can make a property unmortgageable with mainstream lenders. Specialist lenders can sometimes assist — a broker who handles leasehold cases regularly will know which ones.

Question 3

What is an EWS1 form and when is it required?

Accepted Answer

An EWS1 (External Wall System fire risk assessment) is a professional rating of a building's cladding, introduced after Grenfell. Ratings run from A1 (no action needed) to B2 (remedial work required). Many lenders require an EWS1 for any building with external cladding present. A B2 rating or absent EWS1 can prevent mainstream lending entirely. The assessment must be completed by a qualified fire engineer or chartered surveyor. Buildings awaiting cladding remediation may remain unlendable until works are complete.

Question 4

Can I extend the lease during the purchase process?

Accepted Answer

An informal lease extension can be negotiated with the freeholder at any time during the purchase process — no ownership period is required. The statutory route (Leasehold Reform Act 1993) requires two years of ownership, so cannot be used on a purchase. Most lenders will proceed on the strength of a signed Deed of Variation agreeing extension terms, provided the extended lease completes simultaneously with or before mortgage completion. Coordinate this early — it takes time and requires solicitors on both sides.

Question 5

Can high service charges affect my mortgage application?

Accepted Answer

Yes — indirectly. Service charges are disclosed to lenders and surveyors and can affect the lender's view of the property's saleability. Very high or unpredictable charges reduce your disposable income and therefore mortgage affordability. Pending major works funded via a service charge levy (roof, windows, cladding remediation) are particularly important to disclose — lenders may require confirmation of the total liability before proceeding.

Question 6

What did the Leasehold and Freehold Reform Act 2024 change for mortgages?

Accepted Answer

The 2024 Act extended standard lease extensions to 990 years (up from 90 years for flats), abolished marriage value (reducing costs for shorter leases below 80 years), and simplified enfranchisement. For mortgage purposes: 990-year extensions will satisfy all lender lease-length requirements, and the removal of marriage value makes extending cheaper for short-lease properties. These changes significantly reduce the lease-length risk that previously deterred lenders and buyers.

Leasehold Mortgage FAQ