Last reviewed: June 2026
TL;DR- Most mortgage lenders require a minimum remaining lease term of 70-85 years at the start of the mortgage, with some requiring the lease to have at least 55-70 years left at the end of the mortgage term.
- Ground rents above a threshold - commonly £250 per year outside London and £1,000 in London - make the property unmortgageable with most lenders.
- The Leasehold Reform (Ground Rent) Act 2022 banned new ground rents on new residential leases from June 2022.
- Lease extension can restore mortgageability but takes time and cost - it should be planned before the lease becomes critically short.
Leasehold Property and Mortgages
A leasehold property is one where the buyer owns the right to occupy the property for the remaining term of the lease rather than owning the land and building outright (freehold). Most flats in England and Wales are leasehold. Some houses, particularly in certain areas, are also leasehold. The leasehold interest diminishes as the lease term reduces, and short leases are difficult to mortgage and to sell.
Mortgage lenders require a minimum remaining lease term because a short lease reduces the security value of the property. As the lease approaches zero, the property reverts to the freeholder and the leasehold interest becomes worthless. Lenders must be satisfied that the lease will have sufficient remaining term throughout the mortgage period.
Minimum Lease Requirements
Lender minimum lease requirements vary but common standards are:
- Minimum remaining term at the start of the mortgage: typically 70-85 years, though some lenders accept shorter terms with larger deposits.
- Minimum remaining term at the end of the mortgage term: most lenders require at least 55-70 years to remain at the end of the mortgage. On a 25-year mortgage, this means a minimum of 80-95 years at the start.
Leases below approximately 80 years are increasingly difficult to mortgage with mainstream lenders. Below 70 years, the property is effectively unmortgageable through most mainstream channels.
Ground Rent Rules
Ground rent - an annual payment by the leaseholder to the freeholder - has historically been a source of leasehold abuses, particularly "doubling clauses" where ground rent doubles every 10-25 years. The Leasehold Reform (Ground Rent) Act 2022 banned the charging of ground rent on new residential long leases from 30 June 2022 in England and Wales (initially) - new leases must have a "peppercorn" (effectively zero) ground rent.
For existing leases with ground rents above lender thresholds, most lenders will not accept the property. Common thresholds: £250 per year outside London; £1,000 per year in London (aligned with the Landlord and Tenant Act 1985 definition of a "low rent" lease). Ground rent that doubles more frequently than every 20 years or is linked to RPI/CPI is also restricted by many lenders.
Lease Extension
Statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993 gives qualifying leaseholders the right to extend their lease by 90 years (added to the current unexpired term) at a peppercorn ground rent, in exchange for a premium paid to the freeholder. This removes the ground rent and significantly increases the lease value. The premium is calculated using a statutory formula and is typically negotiated between valuers acting for the leaseholder and freeholder. A solicitor and RICS-qualified leasehold valuation surveyor are required for the process.
Frequently Asked Questions
Can I get a mortgage on a leasehold property with 60 years left?
A 60-year remaining lease is very difficult to mortgage through mainstream lenders - most require at least 70-85 years remaining at the start. Specialist lenders may consider a 60-year lease with a larger deposit and a simultaneous lease extension in progress. The most effective solution is to negotiate a lease extension as part of the purchase transaction, so that the extended lease is in place before or at completion. Sellers who wish to maximise their sale proceeds should extend the lease before marketing the property.
What is a "death spiral" lease?
A "death spiral" lease is an informal term for a lease where a very high and frequently doubling ground rent makes the property effectively unsaleable. As the ground rent rises, lenders refuse to mortgage the property, buyers cannot access finance, and the value falls toward zero. Ground rents that double every 10-15 years on a 25-year cycle can rise to unmanageable levels within the lease term. The Leasehold Reform (Ground Rent) Act 2022 prevents new leases from having this structure, but existing problematic leases remain until they are individually resolved.
Does the Leasehold and Freehold Reform Act 2024 change anything?
The Leasehold and Freehold Reform Act 2024 made changes to leasehold law in England and Wales, including provisions to make lease extension easier and cheaper, changes to enfranchisement (buying the freehold), and further ground rent restrictions. The full implementation of the Act's provisions is ongoing. Buyers and leaseholders should check the current position on GOV.UK or with a specialist solicitor for the latest on which provisions are in force.
Can I get a mortgage on a share of freehold flat?
Yes. Share of freehold means the leaseholders collectively own the freehold of the building. Lenders still assess the lease term remaining on the individual flat's lease - owning a share of the freehold does not remove the minimum lease term requirement. However, where the flat owners control the freehold, they can typically extend the lease relatively cheaply and quickly without the statutory negotiation process. Lenders view share of freehold properties favourably because of this control.
