Buying a leasehold property can be an excellent option, particularly for first-time buyers, commuters and those looking for apartments in desirable locations. However, one aspect that often catches buyers by surprise is the length of the lease.
While a property’s appearance, location and price may initially grab your attention, the remaining lease term can have a significant impact on your ability to secure a mortgage, as well as the property’s future value and saleability.
At S J Smith Estate Agents, we regularly help buyers across Surrey, including Ashford and Staines, navigate the leasehold buying process. In this guide, we’ll explain how lease length affects mortgage eligibility, why it matters, and what buyers should look out for before making an offer.
What Is a Leasehold Property?
When you buy a leasehold property, you own the property for a fixed number of years set out in the lease, but not the land it stands on.
The freeholder owns the building and land, while the leaseholder has the right to occupy the property for the remaining term of the lease.
Leasehold ownership is common with:
- Flats and apartments
- Some maisonettes
- Certain modern housing developments
As the lease gets shorter, the value of the property can be affected, which is why buyers and mortgage lenders pay close attention to the remaining lease length.
Why Does Lease Length Matter?
The number of years left on a lease is important because it affects:
- Mortgage availability
- Property value
- Future resale potential
- The cost of extending the lease
A shorter lease can make a property less attractive to buyers and may limit the number of lenders willing to offer a mortgage.
For this reason, checking the lease length should always be one of the first steps when buying a leasehold property.
How Mortgage Lenders View Lease Length
Every mortgage lender has its own lending criteria, but most require a property to have a minimum number of years remaining on the lease.
This is because the property acts as security for the mortgage.
If the lease becomes very short, the property’s value may reduce significantly, increasing the lender’s risk.
Many lenders look for:
- Around 85 years or more remaining for the widest choice of mortgage products.
- At least 70–80 years remaining at the time the mortgage is taken out, although requirements vary between lenders.
- Enough years remaining beyond the end of the mortgage term.
If the lease is considered too short, some lenders may refuse the application altogether or offer less favourable lending terms.
Why the 80-Year Mark Is So Important
One figure you’ll often hear when buying leasehold property is 80 years.
Once a lease falls below this point, extending it can become significantly more expensive because of something known as marriage value.
Marriage value is an additional payment that may become payable when extending a qualifying lease below 80 years, increasing the overall cost of the extension.
For this reason, buyers are often cautious about purchasing properties with fewer than 80 years remaining unless a lease extension is already underway or reflected in the asking price.
Can You Still Get a Mortgage on a Short Lease?
Yes, it’s possible but it can be more challenging.
Some lenders will still consider properties with shorter leases, particularly if:
- The buyer plans to extend the lease.
- The lease still comfortably exceeds the lender’s minimum requirement.
- The property otherwise represents good security.
However, the choice of mortgage products may be more limited, and buyers should seek advice from a qualified mortgage adviser before proceeding.
Should You Avoid Short-Lease Properties?
Not necessarily.
A property with a shorter lease isn’t always a bad investment.
In some cases, it can represent excellent value, particularly if:
- The asking price reflects the lease length.
- A lease extension is possible.
- The buyer understands the likely costs involved.
Many buyers successfully purchase short-lease properties after taking professional legal and financial advice.
The key is understanding exactly what you’re buying before committing.
What Is a Lease Extension?
A lease extension increases the number of years remaining on the lease.
Depending on the circumstances, extending the lease can:
- Improve mortgage eligibility
- Increase property value
- Make the property easier to sell
- Provide greater long-term security
The process can take time, so it’s important to discuss lease extension options with your solicitor early in the transaction.
Questions Buyers Should Ask
Before making an offer on any leasehold property, ask:
- How many years remain on the lease?
- Is the seller willing to begin the lease extension process?
- Are there any service charges or ground rent?
- Has the lease been extended previously?
- Are there any planned building works?
Having this information early can help you make a more informed decision and avoid unexpected costs later.
How an Estate Agent Can Help
An experienced estate agent plays an important role in helping buyers understand leasehold properties.
At S J Smith Estate Agents, we ensure buyers have access to key information about a property’s tenure, including the remaining lease term where available.
We also work closely with solicitors and mortgage advisers to help transactions progress as smoothly as possible.
If a property has a shorter lease, we can explain the options available and help buyers understand the next steps.
Why This Matters for Sellers Too
Lease length isn’t only important for buyers, it can also affect sellers.
If you’re planning to sell a leasehold property, understanding your remaining lease length can help you:
- Price your property realistically
- Attract a wider pool of buyers
- Reduce delays during the sales process
If your lease is approaching 80 years, seeking advice about a possible extension before marketing the property may make it more attractive to prospective purchasers.
Final Thoughts
Lease length is one of the most important factors to consider when buying a leasehold property. It can influence mortgage eligibility, property value, future resale potential and the overall cost of ownership.
While a shorter lease doesn’t automatically mean you should walk away, it’s essential to understand the implications before making an offer. With the right advice from your estate agent, solicitor and mortgage adviser, you can make an informed decision that supports your long-term property goals.
At S J Smith Estate Agents, we’re here to guide buyers through every stage of the purchasing process. Whether you’re buying your first flat, moving home or investing in property across Ashford, Staines or the wider Surrey area, our experienced team is ready to help.
Get in touch today here to discuss your property search or explore our latest leasehold homes.