Mortgage on short lease - Santander now requires 99 years

geeorgelees1975

I have recently been turned down for a mortgage by Santander because the lease on the flat I was buying was 'only' 69years and they, I was told, always require 99 years. What gets me is that I was only told about their 99 year lease policy after the valuation was done having spend lots of money. I was simply told I should ask the seller to extend it before I purchase and they would not lend anything on a short lease! Perhaps I should ask the seller for a swimming pool to! If they are not going to lend on less than 99 years I think that should be said up front so you don't waste your time. What lease lengths do other lenders allow and do they say so openly and before you apply?

alchemist.1

Brokers are probably best placed to advise you.

Let_Us_See

As soon as the adviser is aware the property is leasehold, the immediate question should be length of remaining lease.

geeorgelees1975

Thanks 'Let Us See' I applied direct to Santander - the lease length was asked for but they then let me apply and pay for that and the application before I was told about their policy. When I said I had been turned down - I was told no you have not just ask the seller to extend it! After questioning it I was told by their senior advisers that they always require 99 years -

kingstreet

It's always been 55 years, or mortgage term plus 30 years in my experience;-

http://www.cml.org.uk/lenders-handbook/englandandwales/question-list/321/

anna42hmr

Asking the seller to start the lease extension process may not be a bad idea, as you would not be able to apply to extend it yourself until 2 years after ownership. You may want to have a look on the lease advise site for info.
http://www.lease-advice.org/publications/documents/document.asp?item=75 and http://www.moneysavingexpert.com/mortgages/extend-your-lease

Looking at nationwide site they need a lease of up a minimum of 55 years if in England (50 in scotland) so you may want to look at them, or a broker (I think i have read before that London and Country have been able to source mortgages for short leases.

Looking at the websites of Lloyds, Halifax, TSB and Post Office all suggest that they need a minimum of 70 years at application so those appear to be out.

anna42hmr

Chelsea building society may also be able to provide you with one, as their site states they need:

"60 years to run (or 35 years plus mortgage term if longer) at the date your mortgage is completed."

geeorgelees1975

Thanks King Street - I read that but it seems Santander is not following its policy. I tried to persuade them that if they did not like 69 years they could lend less on it but it was a 'in principle' decision - they will not lend anything on a 69 year lease and insisted it was 99 years. I am transferring a mortgage, perhaps they are being difficult so they can claim an early repayment charge? I wish they had told me their policy before I wasted the application fee and legal costs -

geeorgelees1975

I have now pointed out their CML policy - apparently they will 'consider' ones below 99 years - in my case they considered it and said no! Would be more logical if they lend less rather than nothing if they have a problem - apparently they are worried about the resale value -

Lisalisa28

Hi, just wanted to find out what did you do? Have u found some other lender?

robatwork

Lisalisa28 wrote: »

Hi, just wanted to find out what did you do? Have u found some other lender?

Lisa you may not have noticed that George's post was 2 years ago and he hasn't been back on the forum since, so he won't be answering you.

You are better off posting a new posting on this forum and detail your exact query. Just look at the list of subjects and find the New Thread button.