Is a short leasehold mortgageable in the UK?

Question

Accepted Answer

Most UK buy-to-let lenders require at least 70 years remaining on a lease at the time of mortgage. Below that, the pool of willing lenders shrinks sharply and extension costs climb. The UK mortgage market treats lease length as a hard threshold. Most buy-to-let lenders want a minimum of 70 years remaining on the lease at completion, often requiring 85+ years remaining at the end of the mortgage term. A typical 25-year BTL mortgage on a flat with 95 years remaining is comfortable. A flat with 75 years remaining at purchase sits at the edge of eligibility, because some lenders calculate "years remaining at end of term" and end up below their minimum.

Below 80 years, marriage value kicks in under the Leasehold Reform Act. Lease extension cost jumps significantly, sometimes doubling. At 60 to 70 years remaining, expect extension costs of £8,000 to £14,000 plus legal fees for a typical London flat, less in lower-value markets.

Practical guidance: under 70 years remaining, most investors either walk away or negotiate a price that fully prices in the extension cost. Between 70 and 85 years, offer subject to lease extension starting before exchange (the vendor triggers the statutory process, you complete, the extension completes after). Over 85 years, treat as standard.