Advice needed regarding getting a mortgage on a leasehold property with a low lease

ssdkck

My property has currently 64 years remaining on the lease and im currently with halifax on a variable rate mortgage, paying £800 a month on a €100,000 mortgage. I was on a fixed mortgage from 2016 to 2020 and when we tried to remortgage back in 2020 and at the start of the covid pandemic we were told that the remaining term left on our lease was below there criteria so we basically just switched over to the variable rate. Is it possible to get a mortgage with a different lender with my current situation ? 

ACG

Possibly, it depends on the value of the property (taking into account the short lease) and the term of the mortgage. 
The property will probably be losing value all the time from here on out. Could you not extend the lease?

Speak to a broker. There might be options. 

K_S

ssdkck said:

My property has currently 64 years remaining on the lease and im currently with halifax on a variable rate mortgage, paying £800 a month on a €100,000 mortgage. I was on a fixed mortgage from 2016 to 2020 and when we tried to remortgage back in 2020 and at the start of the covid pandemic we were told that the remaining term left on our lease was below there criteria so we basically just switched over to the variable rate. Is it possible to get a mortgage with a different lender with my current situation ? 

@ssdkck With regard to lender criteria, the main aspects that matter with regard to lease length are - LTV, lease length left at application and lease length left at end of the mortgage term applied for.

So if you needed a 15 year term (taking the lease down to 49 years) Vs needing a 13 year term (lease to 51 years), your lender options would be different.

To answer your question - there are smaller lenders who may consider a starting lease length of 64 years (subject to meeting the other relevant criteria), but how much cheaper they're going to be than Halifax's SVR is hard to say. You may want to consider getting in touch with a broker to review your options. 

Definitely consider extending the lease before the costs mount any further.

MovingForwards

Depending on your income / outgoings / value of property and cost of extending the lease, you could look at simultaneously remortgaging, borrowing extra and extending the lease.