Lease Finance
Leasehold mortgages are essential for purchasing properties with finite lease terms, common in flats. These mortgages consider factors like lease length, ground rent, and service charges. At Amortgageshop, we help buyers navigate leasehold complexities and secure the right financing, including advice on extending short leases to protect your investment.
Understanding Leasehold Mortgages for Buyers
When purchasing a leasehold property, you own the building for a set period but not the land it stands on. Leasehold properties are common, especially in flats, and require a specialised mortgage.
What is a Leasehold Mortgage?
A leasehold mortgage is required when you’re buying a property with a finite lease term, which typically ranges from 90 to 120 years. Shorter leases can make securing a mortgage more difficult, as lenders require sufficient security on the property. Ground rent and service charges also need to be considered.
Can I Extend a Lease?
Yes, lease extensions are possible, but the cost increases as the lease term shortens. It’s advisable to extend a lease early to avoid high costs or difficulty in securing finance.
