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Question: 5.14.1. What minimum unexpired lease term does the lender accept?
| Lender | Answer |
|---|---|
| Accord Buy to Let | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Accord Mortgages Ltd | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Adam & Company |
At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing. |
| Adam & Company International |
At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing. |
| Ahli United Bank (UK) plc | 50 years (at term end) |
| Aldermore Bank PLC |
Second hand property: - Minimum lease term - 85 years from the date of the mortgage, subject to 45 years remaining at the end of the mortgage term. New property: - Minimum lease term – 250 years from the date of the mortgage (Houses) and 125 years from the date of the mortgage (Flats). Where the lease is shorter than 250 years (Houses) or 125 years (Flats) and this is not detailed in the valuation report, you should notify us so that we can ensure that there is no adverse effect upon the valuation. Refer to 5.14.9 and 5.14.10 for our requirements in relation to ground rent and service charges. |
| Allied Irish Bank (GB), a trading name of AIB Group (UK) | 60 years remaining at expiry of mortgage term. |
| April Mortgages | 85 years at completion. 45 years at end of term. |
| Atom Bank plc | At least 80 years at the outset of the mortgage and at least 50 years remaining at the expiry of the mortgage term. |
| Aviva Equity Release UK Ltd |
160 years minus x Where x=the age of the youngest borrower |
| Bank of China | Must have at least 80 years unexpired on completion of the loan. |
| Bank of Ireland (UK) plc |
Yes, subject to a minimum lease term of 85 years. The unexpired lease term must be at least the mortgage term plus 45 years. See also 5.14.9 |
| Bank of Ireland as Bank of Ireland Mortgages |
Yes, subject to a minimum lease term of 85 years. The unexpired lease term must be at least the mortgage term plus 45 years. See also 5.14.9 |
| Bank of Scotland Beginning A |
Minimum 70 years from the date of the mortgage. |
| Bank of Scotland Beginning O |
Minimum 70 years from the date of mortgage. |
| Bank of Scotland Private Banking | |
| Barclays Bank UK PLC |
Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Soc, a trading name Yorkshire Building Soc | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Better HomeOwnership (Mortgages) |
85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Bank | 65 years unexpired at expiry of mortgage term |
| Birmingham Midshires |
Minimum 70 years from the date of the mortgage. |
| Bluestone Mortgages | Mortgage term plus 50 years for residential and mortgage term plus 50 years for buy to let |
| Bradford & Bingley Limited | The lease must have at least 25 years remaining at the end of the mortgage term. |
| Britannia, a trading name of The Co-operative Bank plc | Minimum 85 years unexpired from completion. |
| Buckinghamshire Building Society | Minimum of 55 years unexpired at the end of the mortgage term |
| Chelsea Building Society (a trading name of Yorkshire BS) | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| CHL Mortgages | Please note CHL does not accept underleases. All others must have at least 50 years unexpired at the end of the mortgage term. However, Solicitors should highlight to us any leases that are going to have <85 years remaining at Completion for instructions. |
| Clydesdale Bank plc | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Co-operative Bank plc | Minimum 85 years unexpired from completion, except where the mortgage application is pursuant to the Co-operative Bank's participation in the Government's Help to Buy Shared Equity scheme, in which case (a) the unexpired lease term must not be less than 250 years for new-build houses and not less than 125 years for new-build flats and (b) ground rent must be reasonable at all times and any escalation must be linked to RPI (Retail Price Index) or a similar index. |
| Coutts | At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing. |
| Coutts Finance Co | At least 30 years (calculated from the date stipulated for the repayment of the mortgage) unless we advise you otherwise in writing. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Cynergy Bank | At least 50 years remaining at the end of the mortgage term. We will consider by exception shorter leases and those with statutory processes in place for extensions subject to confirmation from the valuer. |
| Danske Bank | The lease must have a minimum unexpired term of 85 years at the time of completion. |
| Darlington Building Society | Minimum of 85 Years |
| DB UK Bank Ltd | Mortgage Term plus 40 years |
| Dudley Building Society |
Capital and Interest basis - 85 years at draw down Part and Part/Interest only & less than 50% - 85 years at draw down Part and Part/Interest only & greater than 50% LTV - 85 years remaining at the end of the term |
| Ecology Building Society | For leasehold, a minimum of 50 years must remain on the lease after the expiration of the mortgage term. |
| Family Building Soc (a trading name of National Counties BS) | A minimum of 50 years must remain at the end of the mortgage term. |
| First Direct | All Residential leasehold properties must have more than 50 years remaining on the lease beyond the term of the mortgage at the outset. If the above criteria are met, however the unexpired term at the outset has less than 85 years remaining, this will always be subject to a Valuer’s opinion and must be referred to us for approval. The Valuer must be satisfied that there is a market for the property taking the lease into consideration. |
| Fleet Mortgages | 75 years unexpired at the commencement of the mortgage term but the unexpired term of the lease should not be less than 50 years at the scheduled end of the mortgage period |
| Foundation Home Loans |
New Build houses which must have an unexpired lease term of at least 250 years at the start of the mortgage. New Build flats which must have an unexpired lease term of at least 125 years at the start of the mortgage. For non-new build properties, a minimum of of 50 years must remain at the end of the mortgage term. |
| Furness Building Society |
Minimum 85 years unexpired from completion, subject to not less than 55 years remaining at the end of the mortgage term. |
| GE Money Home Lending Ltd | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Gen H | Leases must have at least 85 years unexpired on commencement of the mortgage with a minimum of 50 years remaining at the end of the mortgage term. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages Ltd | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Habito | Minimum 50 years unexpired term on lease at end of mortgage term required. |
| Halifax |
Minimum 70 years from the date of the mortgage. |
| Halifax Loans Ltd |
Minimum 70 years from the date of mortgage. |
| Hampden & Co. plc | At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing. |
| Handelsbanken |
Mortgage term plus 50 years. However, where the lease is shorter than 85 years from the date of the mortgage and this is not detailed in the valuation report, you should notify us so that we can ensure that there is no adverse effect upon the valuation. |
| Harpenden Building Society |
Mortgage term plus 50 years Exceptions may be considered |
| Hinckley and Rugby Building Society | There must be at least 85 years remaining on the lease when the mortgage starts and a minimum of 50 clear and unrestricted years remaining on the lease after the end of the mortgage term |
| Hodge |
Flats - 85 years from the start of the mortgage Houses - Leasehold houses 250 years from the start of the mortgage |
| Hodge Equity Release | 85 years from the start of the mortgage |
| Holmesdale Building Society | 50 years remaining on the lease after the end of the mortgage term. |
| HSBC UK Bank plc |
All residential and buy to let leasehold properties must have a minimum of 50 years remaining after completion of the term of the mortgage. If the above criteria is met, however the unexpired term at the outset has less than 85 years remaining, this will always be subject to a Valuer’s opinion and must be referred to us for approval. The Valuer must be satisfied that there is a market for any property taking the lease into consideration. |
| Intelligent Finance |
Minimum 70 years from the date of the mortgage. |
| Investec Bank plc | At least 60 years after expiry of the mortgage. If the term is less than this, please notify us (details found in section 1.11) |
| ITL Mortgages | 70 years unexpired terms at completion. |
| JPMorgan Chase Bank, N.A. | 50 years unexpired at application, 30 years at the end of the mortgage term. |
| Kensington Mortgage Company Ltd | 70 years from the date of completion of the mortgage |
| Kent Reliance (a trading name of OneSavings Bank plc) | A minimum of 50 years must remain at the end of the mortgage term |
| Keystone Property Finance | 50 years unexpired at the end of the mortgage term |
| Landbay Partners Limited | 55 years unexpired at the end of the of the mortgage term. |
| Landmark Mortgages Limited |
The Mortgage Term plus 30 years. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Legal & General Home Finance Ltd | Leasehold remaining term plus the age of the youngest borrower at completion must be at least 175 years. Where the lease contains provision for a payment on transfer, this must be able to be calculated, fixed or capped and not more than 3% of the full market value of the property or sale price at the point of transfer. |
| LendInvest | 65 years unexpired at the end of the mortgage term. |
| LiveMore Capital | Minimum unexpired lease term at the application is 90 years at the start of the mortgage for RIO and Lifetime Mortgages and 95 years for Interest only and Capital and Interest. |
| Lloyds Bank plc pre fixed 20/40 | Minimum 70 years from the date of the mortgage. |
| Lloyds Bank plc pre fixed 50/30/77 |
Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland plc |
Minimum 70 years from the date of the mortgage. |
| M&S Bank | All leasehold properties must have 30 years remaining on the lease beyond the term of the mortgage at the outset. |
| Magellan Homeloans | At least 55 Years at application and no less than 35 years at the end of the mortgage term. |
| Manchester Building Society | Mortgage Term plus 30 years. |
| Market Harborough Building Society |
Mortgage term plus 50 years |
| Masthaven Bank | 75 years at the start of the mortgage, 50 years at the end of the mortgage. |
| Metro Bank plc |
For residential and buy to let transactions, at least 50 years at the end of the mortgage term. |
| ModaMortgages |
Leasehold acceptable subject to there being a minimum of 50 years unexpired on the lease at the end of the mortgage term. Extension to leases can be considered subject to the extension being legally completed prior to completion and evidence obtained. |
| Molo Finance | A minimum unexpired lease term of 90 years at mortgage completion. |
| Monmouthshire Building Society |
80 years remaining on completion of the loan. |
| Mortgage Agency Services | Minimum 85 years unexpired from completion. |
| Mortgage Express | The lease must have at least 25 years remaining at the end of the mortgage term |
| Mortgage Express No 2 | |
| MPowered Mortgages |
For Buy To Let lending 85 years unexpired at the commencement of the mortgage term but the unexpired term of the lease should not be less than 70 years at the scheduled end of the mortgage term. For Residential lending, A minimum unexpired leasehold term of 70 years is required at commencement of the mortgage term. |
| National Counties Building Society |
A minimum of 50 years must remain at the end of the mortgage term. |
| National Westminster Bank plc |
Mortgage term plus 30 years. |
| Nationwide Building Society |
- Our minimum unexpired lease term is 55 years, except where lending is over 85% of the purchase price/valuation on a second hand flat, in which case our minimum unexpired term is 90 years. - There must be at least 30 years remaining at the end of the mortgage term (regardless of the length of lease at the start). Where the unexpired lease term is different to that recorded on the mortgage offer, the following clarifies if we need to be informed: Second hand property: - If the unexpired lease term on the offer is 85 years or more - only advise us if the actual lease term is less than 85 years - if the unexpired lease term on the offer is less than 85 years – advise us if the actual lease term is different than reported - For equity share applications - advise us if the actual lease term is different than reported on the offer - Where lending is over 85% of the purchase price/valuation on a second hand flat and the unexpired lease term on the offer is 90 years or more - only advise us if the actual lease term is less than 90 years. New build property: - If the unexpired lease term stated on the offer is 125 years (flat) / 250 years (house) or more - only advise us if the actual lease term is less than 125 years (flat) / 250 years (house) - For equity share applications - always advise us if the actual lease term is different than reported on the offer Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below. SECOND HAND PROPERTIES Unacceptable - advise Issuing Office (Will be declined): - Unexpired lease term less than 55 years - Unexpired lease term less than 90 years where we are lending more than 85% of the purchase price/valuation on a second hand flat - Less than 30 years remaining at the end of the mortgage term - Ground Rent greater than 0.5% of the property value - Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more - Ground Rent is compounded RPI - Ground Rent review period is less than or equal to 5 years Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability): - Unexpired lease term is 55 to 85 years - Ground Rent greater than 0.1% and less than or equal to 0.5% of the property value - Ground Rent escalation is linked to any indices greater than RPI - Ground Rent escalation is linked to the value of the building* - Ground Rent review period is greater than 5 and less than 10 years - Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial, etc - Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover) - Service Charges greater than 1% of property value p/a (please provide details of what the charges cover) - Anything that appears onerous, unusual or out of the ordinary Acceptable (no requirement to advise Issuing Office): - Unexpired lease term greater than 85 years (Minimum 90 years where we are lending more than 85% of the purchase price/valuation on a second hand flat) - Ground Rent less than or equal to 0.1% of the property value - Ground Rent review period greater than or equal to 10 years - Ground Rent escalation less than or equal to RPI NEW BUILD PROPERTIES (includes office conversions) Unacceptable - advise Issuing Office (Will be declined) - Unexpired lease term less than 125 years on a new build flat or less than 250 years on a new build house (does not apply to Shared Ownership) - Any lease which is subject to a Ground Rent (or Annual Rent) being charged which is more than on a peppercorn basis - Any lease which is subject to a Ground Rent (or Annual Rent) being charged which is more than on a peppercorn basis Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability): - Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc - Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover) - Service Charges greater than 1% of property value p/a (please provide details of what the charges cover) - Anything else appears onerous, unusual or out of the ordinary Acceptable (no requirement to advise Issuing Office): - Unexpired lease term greater than or equal to 125 years on a new build flat or greater than or equal to 250 years on a new build house - A lease subject to a peppercorn Ground Rent (Annual Rent) charges For the avoidance of doubt, any New Build properties completed but not sold pre-30 June 2022 will only be acceptable if the Lease conforms to the above guidance. * Where the Ground Rent escalation is linked to the value of the building, please provide the following: - How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property? - The current valuation and Ground Rent for each unit - What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned? - What is the right of appeal? And is this a documented process within the lease? - Who bears the cost of the valuation (and appeal) process? - Confirmation the review period is not less than twenty years. Lease Extensions We require all Lease Extensions to be completed under the Leasehold Reform Housing and Urban Development Act 1993 and to meet the above criteria as a minimum. Where you become aware that it does not meet these requirements, please refer to Issuing Office. |
| Nedbank Private Wealth Ltd | We require am unexpired lease term of 80 years. |
| New Street Mortgages |
85 years from the date of completion of the mortgage |
| NRAM Ltd | The mortgage terms plus 25 years. |
| Paragon Buy to Let Mortgages | The unexpired term of the lease must have a minimum of 85 years at the commencement of the mortgage term and a minimum unexpired lease term of 65 years must remain at the end of the mortgage term. |
| Paragon Residential Owner-Occupied Mortgages | The unexpired term of the lease must have a minimum of 85 years at the commencement of the mortgage term and a minimum unexpired lease term of 65 years must remain at the end of the mortgage term. |
| Paratus AMC Ltd | 50 years unexpired at the end of the mortgage term. |
| Parity Trust | Mortgage term plus 35 years |
| Pepper Money | The lease must have a minimum unexpired term of 85 years at the time of completion. |
| Pepper Money (PUK) | The lease must have a minimum unexpired term of 85 years at the time of completion. |
| Perenna | At least 85 years at the outset of the mortgage as a minimum. |
| Platform (a trading name of The Co-operative Bank p.l.c.) | Minimum 85 years unexpired from completion, except where the mortgage application is pursuant to Platform's participation in the Government's Help to Buy Shared Equity scheme, in which case (a) the unexpired lease term must not be less than 250 years for new-build houses and not less than 125 years for new-build flats and (b) ground rent must be reasonable at all times and any escalation must be linked to RPI (Retail Price Index) or a similar index. |
| Precise Mortgages (Charter Court Financial Services Ltd) |
A minimum of 70 years must remain unexpired at completion of the loan advance. |
| Principality Building Society |
You should notify the Society where the unexpired term of the lease is 85 years or less. The Society's lending policy is that it requires a minimum unexpired lease term of 85 years. |
| Reliance Bank Ltd | 80 Years at completion & 30 years at end of loan term |
| Rooftop Mortgages Ltd | |
| Saffron Building Society | There must be a minimum of 60 years unexpired lease remaining at the end of the mortgage term. |
| Sainsbury's Bank |
The unexpired term should be no less than 85 years at the commencement of the mortgage term. Please note the following with regard to Leasehold property. Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below. SECOND HAND PROPERTIES: The following is unacceptable: • Unexpired lease term <85 years at commencement of mortgage term. • Starting Ground Rent >0.1% of the property value. • Ground Rent review period ≤ 5 years. • Ground Rent doubles < every 20 years (e.g. doubles every 5, 10 or 15 years). • Ground Rent is compounded RPI. NEW BUILD PROPERTIES: The following is UNACCEPTABLE for New Builds: • Unexpired lease term <125 years on a new build flat or <250 years on a new build house. • Starting Ground Rent >0.1% of the property value. • Ground Rent review period ≤ 5 years. • Ground Rent doubles < every 20 years (e.g. doubles every 5, 10 or 15 years). • Ground Rent is compounded RPI. |
| Santander UK plc |
You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Scottish Building Society |
Unexpired term of lease must be at least 50 years at end of mortgage term. |
| Scottish Widows Bank | Minimum 70 years from the date of the mortgage. |
| Secure Trust Bank PLC | 85 years from the date of the mortgage., |
| Skipton Building Society |
85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| St James Place Bank | Minimum 70 years from the date of the mortgage. |
| State Bank of India UK | The unexpired term of the lease must have a minimum of 65 years at the commencement of the mortgage term and a minimum unexpired lease term of 40 years must remain at the end of the mortgage term. |
| Swansea Building Society | Mortgage Term plus 50 years |
| The Mortgage Business |
Minimum 70 years from the date of the mortgage. |
| The Mortgage Lender Limited |
For Residential (owner occupied) mortgages the unexpired term of the lease should not be less than 40 years at the scheduled end of the mortgage period. For Buy to Let mortgages the unexpired term of the lease should not be less than 50 years at the scheduled end of the mortgage period. |
| The Mortgage Works |
Minimum unexpired lease term is 70 years with 30 years remaining at the end of the mortgage term. Where the unexpired lease term is different to that recorded on the mortgage offer, the following clarifies if we need to be informed: Second hand property: - If the unexpired lease term on the offer is 85 years or more - only advise us if the actual lease term is less than 85 years - if the unexpired lease term on the offer is less than 85 years – advise us if the actual lease term is different than reported - For equity share applications - advise us if the actual lease term is different than reported on the offer New build property: - If the unexpired lease term stated on the offer is 125 years (flat) / 250 years (house) or more - only advise us if the actual lease term is less than 125 years (flat) / 250 years (house) - For equity share applications - always advise us if the actual lease term is different than reported on the offer Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below. SECOND HAND PROPERTIES Unacceptable - advise Issuing Office (Will be declined): - Unexpired lease term less than 70 years - Less than 30 years remaining at the end of the mortgage term - Ground Rent greater than 0.5% of the property value - Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more - Ground Rent is compounded RPI - Ground Rent review period less than or equal to 5 years Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability): - Unexpired lease term is 70 to 85 years - Ground Rent greater than 0.1% and less than or equal to 0.5% of the property value - Ground Rent escalation is linked to any indices greater than RPI - Ground Rent escalation is linked to the value of the building* - Ground Rent review period is greater than 5 and less than 10 years - Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc - Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover) - Service Charges greater than 1.0% of property value p/a (please provide details of what the charges cover) - Anything that appears onerous, unusual or out of the ordinary Acceptable (no requirement to advise Issuing Office): - Unexpired lease term greater than 85 years - Ground Rent less than or equal to 0.1% of the property value - Ground Rent review period greater than or equal to 10 years - Ground Rent escalation less than or equal to RPI NEW BUILD PROPERTIES (includes office conversions) Unacceptable - advise Issuing Office (will be declined): - Unexpired lease term less than 125 years on a new build flat or less than 250 years on a new build house - Any lease which is subject to a ground rent (or annual rent) being charged which is more than on a peppercorn basis - Any lease which is subject to a ground rent (or annual rent) being reviewed and altered on any review basis or methodology Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability): - Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc - Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover) - Service Charges greater than 1.0% of property value p/a (please provide details of what the charges cover) - Anything else appears onerous, unusual or out of the ordinary Acceptable (no requirement to advise Issuing Office): - Unexpired lease term greater than or equal to 125 years on a new build flat or greater than or equal to 250 years on a new build house - A lease subject to a peppercorn ground rent (annual rent) charges For the avoidance of doubt, any new build properties completed but not sold pre 30 June 2022 will only be acceptable if the lease conforms to the above guidance * Where the Ground Rent escalation is linked to the value of the building, please provide the following: - How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property? - The current valuation and Ground Rent for each unit - What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned? - What is the right of appeal? And is this a documented process within the lease? - Who bears the cost of the valuation (and appeal) process? - Confirmation the review period is not less than twenty years LEASE EXTENSIONS We require all lease extensions to be completed under the Leasehold Reform Housing and Urban Development Act 1993 and to meet the above criteria as a minimum. Where you become aware that it does not meet these requirements, please refer to the Issuing Office |
| The Royal Bank of Scotland plc | Mortgage term plus 30 years. |
| The Royal Bank of Scotland plc Direct Line Mortgages | Mortgage term plus 30 years and sixty years remaining at drawdown. |
| The Royal Bank of Scotland plc Direct Line One | Mortgage term plus 30 years. |
| The Royal Bank of Scotland plc First Active | Mortgage term plus 30 years. |
| The Royal Bank of Scotland plc Natwest one Account | Mortgage term plus 30 years. |
| The Royal Bank of Scotland plc One Account | Mortgage term plus 30 years. |
| The Royal Bank of Scotland plc Virgin One | Mortgage term plus 30 years. |
| The Tipton & Coseley Building Society |
Minimum of 85 years at outset with 60 years remaining at the end of the mortgage term. |
| Together Personal Finance Limited | 50 years remaining at the end of the mortgage term. |
| Topaz Finance Ltd | Mortgage term plus 35 years. |
| TSB Bank plc | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Ulster Bank | Mortgage term plus 30 years. |
| Vida Homeloans |
For capital and interest mortgages there should be 40 years of the lease remaining at the end of the mortgage term. For interest only or part interest only there should be 70 years of the lease remaining at the end of the mortgage term. |
| Virgin Money |
85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Whistletree (a trading name of TSB Bank plc) | The mortgage term plus 30 years |
| Yorkshire Bank Home Loans Ltd |
85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Zephyr Homeloans |
For Zephyr: the requirement is for a minimum unexpired lease term of 70 years remaining at the end of the mortgage term. You must refer to Zephyr if onerous obligations are determined. |