Refinance

“My lease is too short to remortgage”

Most mortgage lenders require a minimum unexpired lease term, commonly around 70 years at the end of the mortgage. Where a lease has fallen below that, bridging can fund the extension premium and legal costs, and the property is refinanced onto a normal mortgage once the extended lease is registered.

An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.

Sound familiar?

Your lease has fewer than about 80 years left
A remortgage or sale has been declined or devalued because of the lease
You have been quoted a premium to extend but cannot fund it
The premium rises sharply as the term falls below 80 years

The situation

Lease length is one of the few property problems that gets measurably worse while you think about it. Below 80 years unexpired, marriage value applies and the premium to extend rises steeply. Below roughly 70 years, most lenders withdraw altogether, which depresses the value and removes your ability to borrow against it.

The trap is circular: you cannot remortgage to fund the extension because the lease is too short, and the lease stays short because you cannot fund the extension.

Why the usual lenders say no

Nearly every mortgage lender applies a minimum unexpired term, and a short lease fails it automatically.
The valuation itself falls as the lease shortens, reducing what could be borrowed even if a lender were willing.
Further advances are refused for the same reason as new lending.

What usually works

A bridge to fund the extension premium

Secured on the property, sized to cover the premium, the freeholder’s costs and your own legal fees. The short lease is the reason for the loan rather than a barrier to it.

Refinancing once the lease is registered

With the extended lease in place the property is mortgageable again, usually at a higher value, and a term mortgage repays the bridge.

Acting before 80 years

If you still have more than 80 years, extending now avoids marriage value entirely and costs substantially less. This is the single best piece of advice on the subject.

Roughly how the numbers look

Illustrative figures for this situation
Mortgage lender minimum	Commonly around 70 years unexpired
Marriage value threshold	Below 80 years, the premium rises sharply
What the bridge covers	Premium, freeholder’s costs, your legal and valuation fees
Value effect	Extension usually increases value by more than the premium

Lease extension is a legal process with statutory timescales. A specialist solicitor and a valuer experienced in lease extensions are both essential. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.

What we would need from you

A copy of the lease and confirmation of the unexpired term
The premium quoted, or a valuer’s assessment of it
Details of the freeholder and the stage the process has reached
A valuation of the property in its current and extended state
Your exit: a mortgage decision in principle post-extension, or a sale
Photo ID and proof of address

Things that catch people out

You generally need to have owned the property for two years to use the statutory route. Check before you rely on it.
Freeholder costs are payable by you as well as your own. Budget for both.
The process takes months. Set the bridging term against the legal timetable, not the optimistic one.

Questions we get asked

How short is too short for a mortgage?

It varies by lender, but many require around 70 years unexpired at the end of the mortgage term, which in practice means considerably more than 70 years today. Below 80 years the value is also affected by marriage value.

Can I borrow the money to extend my lease?

Yes. A bridge secured on the property can fund the premium and the associated costs, and is repaid by a mortgage once the extended lease is registered and the property is mortgageable again.

Is extending worth the cost?

Usually, because the uplift in value normally exceeds the premium, and the alternative is a property that continues to decline in value and marketability. A valuer experienced in lease extensions can tell you specifically.

The product that usually fits

See how it works

Every case is different. A specialist will confirm what actually fits yours.

Rather talk now?

020 4525 4876

9:00am – 5:30pm, Monday to Friday

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