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Question: 5.10. Does the lender accept long lease titles as security?
| Lender | Answer |
|---|---|
| Accord Buy to Let |
No |
| Accord Mortgages Ltd |
Yes. |
| Adam & Company | Please request consent and provide details at contact detailed at 1.11a |
| Adam & Company International |
Please request consent and provide details at contact detailed at 1.11a |
| Aldermore Bank PLC | Yes, provided the unexpired lease term is not less than than 85 years from the mortgage start date |
| Allied Irish Bank (GB), a trading name of AIB Group (UK) | Refer to AIB Group (UK) plc, Central Securities (GB), 92 Anne Street, Belfast, BT1 3H |
| Atom Bank plc | No |
| Aviva Equity Release UK Ltd | Yes, provided the unexpired term of the lease is at least 160 years minus 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. |
| 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. |
| Bank of Scotland Beginning A | Yes, provided the unexpired Lease is at least equivalent to the mortgage term plus 30 years. |
| Bank of Scotland Beginning O | Yes, provided the unexpired Lease is at least equivalent to the mortgage term plus 30 years. |
| Barclays Bank UK PLC |
No |
| Birmingham Midshires | Yes, provided that the remaining term is at least the mortgage term plus 30 years. |
| Bluestone Mortgages | Yes, provided the unexpired lease term is not less that the mortgage term plus 30 years |
| Bradford & Bingley Limited |
We accept leasehold title provided that it gives us essentially the same protection as where a feudal title is offered. The outstanding duration of the lease as at the termination of our mortgage must be at least 100 years. |
| Britannia, a trading name of The Co-operative Bank plc | No |
| Chelsea Building Society (a trading name of Yorkshire BS) | Yes. |
| Clydesdale Bank plc | Minimum of 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 |
Yes, provided that the lease has at least 85 years to run from completion. |
| Coutts |
Please request consent and provide details at contact detailed at 1.11a |
| Coventry Building Society | Yes |
| Darlington Building Society | Yes - mortgage term plus 30 years. |
| DB UK Bank Ltd | Yes, provided there is a minimum of 40 years remaining at the end of the mortgage term |
| Ecology Building Society |
Yes, provided unexpired term exceeds mortgage term plus 35 years |
| First Direct |
Yes, as long the long lease converted into ownership on 28 November 2015 under the Long Leases (Scotland) Act 2012, having had an initial term of more than 175 years and on 28 November 2015 a remaining term of more than 100 years or if the initial lease term was 175 years or less, as long as the lease included a condition requiring the landlord to renew the lease with a term of more than 175 years. Lease terms such as ground rents must be reasonable at all times during the term of the lease and adhere to our requirement below. If you are unsure as to whether the terms of a lease are reasonable or onerous, please refer the details to us for 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 mechanism by which any increase is calculated. See the guidance below: Acceptable: • Maximum Ground Rent p.a. must not exceed £250 per year. If there is the potential (within the lease provisions) for the ground rent to exceed these levels then the rent should be reduced to within the required threshold. This would require a lease variation on the lines that under no circumstances could reviewed rent be increased so that it comes within the applicable Assured Shorthold Tenancy (AST) thresholds in the Housing Act 1988 (as amended) or in any legislation amending or replacing it or in any subordinate legislation issued under it. If the lease cannot be varied, a suitable indemnity policy must be put in place to protect the risk to the Bank • Ground Rent less than or equal to 0.2% of the current property value (New Builds restricted to 0.1%) • Grounds Rent review period greater than or equal to 10 years • Ground Rent escalation less than or equal to RPI. Any RPI increase must not exceed the AST thresholds under the Housing Act 1988. • Ground Rent doubles every 20 years or over any longer period and does not continue to double after 125 years. Any doubling of ground rent must not be capable of exceeding the AST thresholds. Unacceptable: • Ground Rent greater than 0.2% of the current property value (New Builds greater than 0.1%) • Ground Rent review period is less than 10 years • Ground Rent escalation greater than RPI or linked to any other indices • Ground Rent doubles less than every 20 years Where ground rent provisions cause (or, during the term of the mortgage and/or lease, are likely to cause) the lease to be treated as an Assured Shorthold Tenancy (AST) under the Housing Act 1988, this need not be reported to us if either: a. the Lease can be varied to restrict the ground rent below the statutory level; OR b. If the lease cannot be varied, a suitable indemnity policy is put in place to protect the risk to the Bank (Please refer to paragraph 9 for the Bank’s requirements for Indemnity Insurance). |
| Foundation Home Loans | Yes |
| Furness Building Society | Yes provided there is a minimum term of 55 years unexpired from completion subject to not less than 30 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. |
| Godiva Mortgages Ltd | Yes |
| Halifax |
Yes, provided minimum 70 years remaining from the date of the mortgage. |
| Halifax Loans Ltd |
Yes, provided the remaining term is at least the mortgage term plus 30 years. |
| Hampden & Co. plc | Please refer consent and pertinent details to contact detailed in 1.11. |
| Handelsbanken | Yes, but refer to Branch office instructing you to confirm term of lease unexpired is at least mortgage term plus 50 years. |
| Hodge |
Flats -85 years from the start of the mortgage |
| Hodge Equity Release | We require a minimum unexpired lese term of 85 years from the start of the mortgage |
| HSBC UK Bank plc |
Yes, as long the long lease converted into ownership on 28 November 2015 under the Long Leases (Scotland) Act 2012, having had an initial term of more than 175 years and on 28 November 2015 a remaining term of more than 100 years or if the initial lease term was 175 years or less, as long as the lease included a condition requiring the landlord to renew the lease with a term of more than 175 years. Lease terms such as ground rents must be reasonable at all times during the term of the lease and adhere to our requirement below. If you are unsure as to whether the terms of a lease are reasonable or onerous, please refer the details to us for 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 mechanism by which any increase is calculated. See the guidance below: Acceptable: • Maximum Ground Rent p.a. must not exceed £250 per year. If there is the potential (within the lease provisions) for the ground rent to exceed these levels then the rent should be reduced to within the required threshold. This would require a lease variation on the lines that under no circumstances could reviewed rent be increased so that it comes within the applicable Assured Shorthold Tenancy (AST) thresholds in the Housing Act 1988 (as amended) or in any legislation amending or replacing it or in any subordinate legislation issued under it. If the lease cannot be varied, a suitable indemnity policy must be put in place to protect the risk to the Bank • Ground Rent less than or equal to 0.2% of the current property value (New Builds restricted to 0.1%) • Grounds Rent review period greater than or equal to 10 years • Ground Rent escalation less than or equal to RPI. Any RPI increase must not exceed the AST thresholds under the Housing Act 1988. • Ground Rent doubles every 20 years or over any longer period and does not continue to double after 125 years. Any doubling of ground rent must not be capable of exceeding the AST thresholds. Unacceptable: • Ground Rent greater than 0.2% of the current property value (New Builds greater than 0.1%) • Ground Rent review period is less than 10 years • Ground Rent escalation greater than RPI or linked to any other indices • Ground Rent doubles less than every 20 years Where ground rent provisions cause (or, during the term of the mortgage and/or lease, are likely to cause) the lease to be treated as an Assured Shorthold Tenancy (AST) under the Housing Act 1988, this need not be reported to us if either: a. the Lease can be varied to restrict the ground rent below the statutory level; OR b. If the lease cannot be varied, a suitable indemnity policy is put in place to protect the risk to the Bank (Please refer to paragraph 9 for the Bank’s requirements for Indemnity Insurance). |
| HSMS |
As 1.11a |
| Intelligent Finance | Yes |
| ITL Mortgages | Yes |
| Kensington Mortgage Company Ltd |
70 years from the date of completion of the mortgage. |
| Landbay Partners Limited | No. |
| Landmark Mortgages Limited |
Yes, provided the lease has a term of at least the mortgage term plus 30 years left to run. |
| Leeds Building Society | Yes, provided unexpired term exceeds mortgage term plus 40 years. |
| Legal & General Home Finance Ltd | N/A |
| LendInvest | Yes but only where the leasehold is for a minimum duration of the mortgage term plus 65 years. The lease must include adequate mortgagee protections, affording the lender the opportunity to dispose of the tenant's interest in the lease. We also require that there are no forfeiture on insolvency provisions contained in the lease. |
| LiveMore Capital | No, long lease titles are not accepted as security |
| Lloyds Bank plc pre fixed 40 |
Yes provided the unexpired lease term is at least the mortgage term plus 30 years subject to a minimum term of 70 years |
| Lloyds Bank plc pre fixed 50 |
Yes, provided the unexpired lease term is at least the mortgage term plus 30 years subject to a minimum term of 70 years |
| Lloyds TSB Scotland plc |
Yes, provided the unexpired lease term is at least the mortgage term plus 30 years subject to a minimum term of 70 years |
| M&S Bank | yes |
| Magellan Homeloans | No |
| Masthaven Bank | Yes, provided the unexpired lease term is not less than 75 years at the start of the mortgage, and 50 years at the end of the mortgage. |
| Metro Bank Plc | No. |
| Mortgage Agency Services |
Yes, provided the lease has at least 99 years to run. |
| Mortgage Express |
We accept leasehold title provided that it gives us essentially the same protection as where a feudal title is offered. The outstanding duration of the lease as at the termination of our mortgage must be at least 100 years |
| Mortgage Express No 2 |
We accept leasehold title provided that it gives us essentially the same protection as where a feudal title is offered. The outstanding duration of the lease as at the termination of our mortgage must be at least 100 years |
| National Westminster Bank plc |
No, but please refer individual cases to us if you feel security is adequate. |
| Nationwide Building Society | We require you to ensure that any qualifying leases under the Long Leases (Scotland) Act 2012 are converted by application to the Land Register of Scotland and the title sheet updated or created before completion of the mortgage. If any lease is not a qualifying lease under the Long Leases (Scotland) Act 2012 or the application is not accepted by the Land Register of Scotland following application to convert a qualifying lease then please refer the details to us. |
| Nedbank Private Wealth Ltd | Please refer to us for instructions. |
| New Street Mortgages |
85 years from the date of completion of the mortgage |
| NRAM Ltd | Yes, provided the lease has a term of at least the mortgage term plus 25 years left to run. |
| Paragon Buy to Let Mortgages | No. |
| Platform (a trading name of The Co-operative Bank p.l.c.) |
Yes, provided the lease has at least 99 years to run from completion. |
| Precise Mortgages (Charter Court Financial Services Ltd) | Yes, provided you give an unqualified Certificate of Title and the unexpired term of the lease is at least 70 years at completion of the loan advance. |
| Rooftop Mortgages Ltd |
Yes, as long as there is a minimum unexpired lease term of 50 years at the beginning of the mortgage term and a minimum unexpired lease term of 35 years at the end of the mortgage term. |
| Sainsbury's Bank | No. |
| 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 |
| Scottish Building Society |
Yes - Unexpired term of lease must be at least 50 years at end of mortgage term. |
| Scottish Widows Bank | Yes |
| Skipton Building Society |
Yes, provided there is a minimum unexpired term of 85 years from the date of completion of the mortgage. For Buy to Let cases: - any letting must not breach any of the lessee’s covenants; and - consent of the lessor to letting must be obtained if necessary |
| St James Place Bank | No |
| The Mortgage Business |
Yes, minimum mortgage term plus 30 years. |
| The Mortgage Lender Limited | No. |
| The Mortgage Works |
The lender requires you to ensure that any qualifying leases under the Long Leases (Scotland) Act 2012 are converted by application to the Land Register of Scotland and the title sheet updated or created before completion of the mortgage. If any lease is not a qualifying lease under the Long Leases (Scotland) Act 2012 or the application is not accepted by the Land Register of Scotland following application to convert a qualifying lease then please refer the details to us |
| The Royal Bank of Scotland plc |
Refer to Mortgage Centre, Greenock for consideration. Offset Flexible Mortgage - As detailed above in 1.11a. |
| The Royal Bank of Scotland plc Direct Line Mortgages |
Refer to Direct Line, Birmingham for consideration. |
| The Royal Bank of Scotland plc Direct Line One |
As detailed above in 1.11a. |
| The Royal Bank of Scotland plc First Active |
Refer to First Active, Birmingham for consideration. |
| The Royal Bank of Scotland plc Natwest one Account |
No but please refer individual cases to us if you feel security is adequate |
| The Royal Bank of Scotland plc One Account |
No but please refer individual cases to us if you feel security is adequate |
| The Royal Bank of Scotland plc Virgin One |
No but please refer individual cases to us if you feel security is adquate |
| Topaz Finance Ltd |
Not usually. Refer to Mortgage Services. Address and telephone number on Offer of Advance. |
| TSB Bank plc | Yes, provided the unexpired lease term is a minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| UCB Home Loans Corporation Ltd |
Yes provided the unexpired term of the lease exceeds the term of the mortgage plus 30 years. |
| Ulster Bank |
No, but please refer individual cases to us if you feel security is adequate. |
| Vida Homeloans |
Yes. For capital and interest mortgages there should be 40 years of the lease remaining at the end of the mortgage term. For interest only there should be 70 years of the lease remaining at the end of the mortgage term. |
| Virgin Money | Yes, we need a minimum term of 85 years at the time of settlement. If it's less, we require it to be extended on or before settlement. |
| Whistletree (a trading name of TSB Bank plc) | Yes, provided the lease has a term of at least the mortgage term plus 30 years left to run |
| Yorkshire Bank Home Loans Ltd | Minimum of 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | Yes |