If you’re buying a leasehold flat and discover the lease is short—typically under 85 years—you might find yourself hitting a wall with mortgage lenders. In 2025, short lease properties are still seen as high risk, and many mainstream banks simply won’t touch them.

But that doesn’t mean you’re out of options. With the right strategy—and often the right timing—you can finance a short-lease property successfully. Here’s what you need to know.

What Counts as a Short Lease?

In the eyes of most lenders:

• Below 80 years = short lease
• Under 70 years = high-risk
• Under 60 years = very limited lender appetite

Why does this matter?

Because as the lease term shortens, the value of the property declines—and the cost of extending the lease increases sharply, especially once it drops below 80 years due to “marriage value.”

Why Lenders Worry About Short Leases

Lenders are cautious with short leases because:

• The asset is depreciating—reducing their security
• The resale market is limited
• Lease extensions can be expensive and uncertain
• Service charges and ground rents may be disproportionately high
• Legal complexity can cause delays and valuation issues

As a result, many mainstream lenders set a minimum unexpired lease term—often 70–85 years at the point of application, and a minimum of 50–55 years remaining at the end of the mortgage term.

Your Options for Financing a Short Lease in 2025

🔹 1. Negotiate a Lease Extension Before Completion

This is the most straightforward route. If the current owner qualifies for a lease extension, they can start the process before selling, and either:

• Complete the extension before sale
• Assign the right to extend to you as the buyer

This allows you to apply for a standard mortgage with normal terms.

🔹 2. Use Bridging Finance to Fund the Purchase and Extension

If time is short, or the seller can’t extend the lease:

• Use bridging finance to buy the property quickly
• Apply for a statutory lease extension as the new owner (after 2 years, unless the right was assigned)
• Refinance onto a standard mortgage once the lease is extended

We often recommend this approach when the lease is very short (under 60 years) and lenders won’t consider it.

🔹 3. Find a Lender with Flexible Lease Criteria

A few specialist lenders will consider leases under 70 years—sometimes as low as 50 years—if:

• The lease is being extended concurrently
• The LTV is low (often under 60%)
• The valuer confirms the property is mortgageable
• The borrower has strong affordability and experience

Key Considerations When Dealing with Short Leases

• Cost of extension: Can range from £5,000 to £50,000+, depending on the property
• Marriage value: Applies once lease drops below 80 years—can make the extension far more expensive
• Ground rent: Ground rents that double every 10–20 years are now a major red flag for lenders
• Valuation risk: RICS valuers may down-value short lease properties by 10–30%
• Legal delays: Always use a solicitor familiar with lease extensions and assignments

Real-World Example

Willow recently helped a client secure a 12-month bridging loan to purchase a London flat with 58 years remaining on the lease.

The client intended to live there long term but couldn't secure a mortgage due to the low lease length. After the purchase, we worked with their solicitor to initiate a statutory lease extension. Once complete, we refinanced the property to a mainstream lender at 75% LTV—unlocking better rates and long-term security.

How Willow Private Finance Helps

We advise on:

• Purchases involving short leaseholds
• Bridging finance for lease extension projects
• Lenders with flexible lease criteria
• Refinancing after lease extension
• Legal structuring and valuation strategy

Our whole-of-market access means we know which lenders to approach, when to use bridging, and how to build a clear, acceptable exit plan.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.