Usually yes, but with fewer lenders. Many mainstream lenders want at least 70 to 85 years left on a lease, and below 80 years the cost of extending rises sharply because of marriage value. The answer is often to buy and extend at the same time: the seller starts the statutory extension and passes it to you on completion, or the extension is agreed with the freeholder and completes alongside your purchase, with the mortgage arranged on that basis.
- 01What is a short lease?
- 02Why lenders are cautious
- 03The 80-year threshold and marriage value
- 04Buying and extending at the same time
- 05How we finance it
- 06How we help
01What is a short lease?
When you buy a leasehold flat, you buy the right to live in it for the years left on the lease. Those years run down over time, and once a lease falls below around 80 to 90 years it is generally described as short.
A shorter lease makes a flat harder to mortgage, harder to sell and more expensive to extend. Flats with short leases are often priced lower for exactly that reason, which can make them good value if the extension is planned properly.
02Why lenders are cautious
A lease is a wasting asset, so lenders want enough years left to protect their security for the whole mortgage term and beyond.
| Years left on the lease | Typical lender view |
|---|---|
| 90 years or more | Acceptable to most lenders |
| 80 to 90 years | Acceptable to many, though some want more left at the end of the term |
| 70 to 80 years | A narrower choice; some lenders require an extension |
| Under 70 years | Few mainstream lenders without an extension in place |
Indicative only. Many lenders also want 30 to 50 years left when the mortgage ends.
03The 80-year threshold and marriage value
Under the statutory route, a flat owner can extend the lease by 90 years with the ground rent reduced to nothing. The price, called the premium, depends on the flat’s value, the ground rent and the years left.
Once a lease falls below 80 years, the premium also includes marriage value, a share of the increase in the flat’s value from the longer lease. That is why extending at 79 years can cost noticeably more than at 81.
The Leasehold and Freehold Reform Act 2024 will remove marriage value and allow 990-year extensions, but those changes are not yet in force. The rule that you must own the flat for two years before using the statutory route has already been removed.
04Buying and extending at the same time
You no longer need to own the flat for two years before claiming a statutory extension, which makes it easier to deal with a short lease as part of the purchase.
- The seller serves the notice. The seller starts the statutory extension by serving a formal notice on the freeholder and assigns the benefit to you on completion. You then finish the extension as the new owner, and the premium is fixed by the notice.
- An agreed extension. The seller or you agree terms with the freeholder informally, and the new lease completes at the same time as your purchase.
- Extend after you buy. You buy with a lender happy with the current lease, then serve your own notice straight away.
Whichever route suits the seller and freeholder, your solicitor and a specialist lease valuer need to be involved early, as the statutory process has strict deadlines.
05How we finance it
- Lending on the extended lease. Some lenders will lend based on the value of the flat with the extended lease, provided the extension completes with or shortly after the purchase.
- Funding the premium. The premium and the freeholder’s costs can be paid from savings or, with some lenders, included in your borrowing.
- Specialist lenders. Where the lease is very short, specialist lenders will lend on the current lease while the extension is completed.
- Remortgaging later. Once the lease is extended, the flat is usually worth more and easier to mortgage, so a remortgage can bring a better rate.
Existing owners can also remortgage to raise the money to extend their own lease, and many lenders treat this as an acceptable reason for extra borrowing.
06How we help
We match the mortgage to the extension route the seller and freeholder agree, coordinate with your solicitor and valuer, and make sure the lender is comfortable before you exchange. Our Leasehold Flats Guide covers lease length, ground rent and service charges in more detail.
Found a flat with a short lease? Arrange a consultation and we will tell you which lenders and routes are open to you.
Frequently asked questions
What is classed as a short lease?
There is no fixed definition, but leases under around 80 to 90 years are usually treated as short, and below 80 years extending becomes more expensive.
Can I get a mortgage on a flat with less than 80 years left?
Often, yes, though with fewer lenders. Many will lend if the lease is being extended at the same time or soon after completion.
What is marriage value?
It is a share of the increase in a flat’s value from extending the lease, added to the premium when fewer than 80 years remain.
Do I need to own the flat for two years before extending?
No. That requirement has been removed, so a new owner can start a statutory lease extension straight away.
Can the seller extend the lease for me?
Yes. The seller can serve the statutory notice and assign the benefit to you on completion, which fixes the premium and timetable.
Can I borrow the cost of the lease extension?
With some lenders, yes, either as part of the purchase or by remortgaging after you buy.