72 years is left on the leasehold of flat. Will the mortgage company let me buy it?
Saturday, March 12th, 2011 at
9:04 am
Our offer has been accepted on a flat but the lease has only 72 years left on it. Will the mortgage company refuse to let us the money on it? Also, how long does it take to extend the lease and can the leaseholder ask for any amount of compensation in return for another 99 years on the lease? many thanks
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Tagged with: 72 Years • Money • Mortgage Company
Filed under: flat mortgage
You won’t have any problem with 72 years remaining. You won’t be around another 99 years anyway.
You can always get a freeholder to renew the lease, but of course the ground rent will go up. But then the flat with the longer lease will be worth more. If you re-negotiate the lease - ask for 125 years this time - the flat will be then worth even more then.
70 years is about the cut off point for most lenders, you could probably get away with 72 if you don’t want to delay the purchase.