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Question: 5.14.1. What minimum unexpired lease term does the lender accept?

Lender Answer
Accord Buy to Let 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Accord Mortgages Ltd 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Adam & Company At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing.

Adam & Company International At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing.

Ahli United Bank (UK) plc 20 years (at term end)
Aldermore Bank PLC 60 years from the date of the mortgage, subject to 40 years remaining at the end of the mortgage term.

However, where the lease is shorter than 85 years from the date of the mortgage and this is not detailed in the valuation report, you should notify us so that we can ensure that there is no adverse effect upon the valuation.
Allied Irish Bank (GB), a trading name of AIB Group (UK) 60 years remaining at expiry of mortgage term.
Atom Bank plc At least 80 years at the outset of the mortgage and at least 50 years remaining at the expiry of the mortgage term.
Aviva Equity Release UK Ltd 160 years minus x
Where x=the age of the youngest borrower
Bank of Ireland (UK) plc Yes, subject to a minimum lease term of 85 years. The unexpired lease term must be at least the mortgage term plus 45 years. See also 5.14.9
Bank of Ireland as Bank of Ireland Mortgages Yes, subject to a minimum lease term of 85 years. The unexpired lease term must be at least the mortgage term plus 45 years. See also 5.14.9
Bank of Scotland Beginning A Minimum 70 years from the date of the mortgage.
Bank of Scotland Beginning O Minimum 70 years from the date of mortgage.
Barclays Bank UK PLC Mortgage term plus 25 years
Barnsley Building Soc, a trading name Yorkshire Building Soc 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Bluestone Mortgages Mortgage term plus 30 years.
Bradford & Bingley Plc The lease must have at least 25 years remaining at the end of the mortgage term.
Britannia, a trading name of The Co-operative Bank plc 70 years unexpired at application, 30 years at the end of the mortgage term
Buckinghamshire Building Society Minimum of 35 years unexpired at the end of the mortgage term
Capital Home Loans Must have at least 60 years unexpired term on completion, with a minimum of 35 years remaining at the end of the mortgage term.
Chelsea Building Society (a trading name of Yorkshire BS) 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Clydesdale Bank plc Mortgage term plus 30 years.
Co-operative Bank plc 70 years unexpired at application, 30 years at the end of the mortgage term
Coutts At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing.
Coutts Finance Co At least 30 years (calculated from the date stipulated for the repayment of the mortgage) unless we advise you otherwise in writing.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Cynergy Bank Not less than 75 years at drawdown of the loan or first drawdown where the loan is drawn down in stages or less than 50 years unexpired at the end of the loan.
Darlington Building Society Minimum of 85 Years
DB UK Bank Ltd Mortgage Term plus 40 years
Dudley Building Society Capital and Interest basis - 85 years at draw down
Part and Part/Interest only & less than 50% - 85 years at draw down
Part and Part/Interest only & greater than 50% LTV - 85 years remaining at the end of the term

Earl Shilton Building Society Mortgage Term plus 50 years
Ecology Building Society Mortgage term plus 35 years
Family Building Soc (a trading name of National Counties BS) A minimum of 50 years must remain at the end of the mortgage term.
Fleet Mortgages 75 years unexpired at the commencement of the mortgage term but the unexpired term of the lease should not be less than 40 years at the scheduled end of the mortgage period
Foundation Home Loans 50 years unexpired at the end of the mortgage term.
Furness Building Society Minimum 85 years unexpired from completion, subject to not less than 55 years remaining at the end of the mortgage term.
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Godiva Mortgages Ltd A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Habito Minimum 50 years unexpired term on lease at end of mortgage term required.
Halifax Minimum 70 years from the date of the mortgage.
Halifax Loans Ltd Minimum 70 years from the date of mortgage.
Hampden & Co. plc At least 30 years (calculated from the date stipulated for the repayment of the loan) unless we advise you otherwise in writing.
Handelsbanken Mortgage term plus 50 years.

However, where the lease is shorter than 85 years from the date of the mortgage and this is not detailed in the valuation report, you should notify us so that we can ensure that there is no adverse effect upon the valuation.
Harpenden Building Society Mortgage term plus 40 years
Exceptions may be considered
Hinckley and Rugby Building Society There must be at least 85 years remaining on the lease when the mortgage starts and a minimum of 50 clear and unrestricted years remaining on the lease after the end of the mortgage term
Hodge Equity Release 90 years from the start of the mortgage
Hodge Life 90 years from the start of the mortgage
Holmesdale Building Society 50 years remaining on the lease after the end of the mortgage term.
HSBC UK Bank plc All Residential leasehold properties must have more than 30 years remaining on the lease beyond the term of the mortgage at the outset.

All Buy to Let leasehold properties must have more than 35 years remaining on the lease beyond the term of the mortgage at the outset.
Intelligent Finance Minimum 70 years from the date of the mortgage.
Investec Bank plc 60 years after expiry of the mortgage.
ITL Mortgages 70 years unexpired terms at completion.
JPMorgan Chase Bank, N.A. 50 years unexpired at application, 30 years at the end of the mortgage term.
Kensington Mortgage Company Ltd 85 years from the date of completion of the mortgage
Kent Reliance (a trading name of OneSavings Bank plc) A minimum of 50 years must remain at the end of the mortgage term
Keystone Property Finance 50 years unexpired at the end of the mortgage term
Landbay 55 years unexpired at the end of the term
Landmark Mortgages Limited The Mortgage Term plus 30 years.
Leeds Building Society 85 years remaing from the start of the mortgage.
Legal & General Home Finance Ltd Leasehold remaining term plus the age of the youngest borrower at completion must be at lease 185 years. Where the lease contains provision for a payment on transfer, this must be able to be calculated, fixed or capped and not more than 3% of the full market value of the property or sale price at the point of transfer.
LendInvest Mortgage term plus 65 years
Lloyds Bank plc pre fixed 20/40 Mortgage term plus 30 years subject to an overall minimum term of 70 years.
Lloyds Bank plc pre fixed 50/30/77 Mortgage term plus 30 years subject to an overall minimum term of 70 years
Lloyds TSB Scotland plc Mortgage term plus 30 years subject to an overall minimum term of 70 years
M&S Bank All leasehold properties must have 30 years remaining on the lease beyond the term of the mortgage at the outset.
Magellan Homeloans At least 55 Years at application and no less than 35 years at the end of the mortgage term.
Manchester Building Society Mortgage Term plus 30 years.
Market Harborough Building Society Mortgage term plus 50 years
Masthaven Bank 75 years at the start of the mortgage, 50 years at the end of the mortgage.
Metro Bank plc For residential and buy to let transactions, at least 50 years at the end of the mortgage term.


Molo Finance Buy to Let Mortgages A minimum unexpired lease term of 90 years must remain at the end of the mortgage term.
Monmouthshire Building Society 80 years remaining on completion of the loan.
Mortgage Agency Services 50 Year unexpired at application, 25 years at the end of the mortgage term
Mortgage Express The lease must have at least 25 years remaining at the end of the mortgage term
Mortgage Express No 2  
National Counties Building Society A minimum of 50 years must remain at the end of the mortgage term.
National Westminster Bank plc Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
Nationwide Building Society - Our minimum unexpired lease term is 55 years.
- There must be at least 30 years remaining at the end of the mortgage term (regardless of the length of lease at the start).

Ground Rents and event fees must be reasonable at all times during the term of the lease. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us for Valuer consideration. See the guidance below.

SECOND HAND PROPERTIES

Unacceptable - advise Issuing Office (Will be declined):
- Unexpired lease term <55 years
- <30 years remaining at the end of the mortgage term
- Ground Rent >0.5% of the property value
- Ground Rent doubles <every 20 years (e.g. doubles every 5, 10 or 15 years)
- Ground Rent is compounded RPI
- Ground Rent review period ≤5 years

Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- Unexpired lease term is 55 to 85 years
- Ground Rent >0.1% and ≤0.5% of the property value
- Ground Rent escalation is linked to any indices greater than RPI
- Ground Rent escalation is linked to the value of the building*
- Ground Rent review period is >5 and <10 years
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial, etc
- Estate Rent Charges >£500 p/a (please provide details of what the charges cover)
- Service Charges >0.5% of property value p/a (please provide details of what the charges cover)
- Anything that appears onerous, unusual or out of the ordinary

Acceptable (no requirement to advise Issuing Office):
- Unexpired lease term >85 years
- Ground Rent ≤0.1% of the property value
- Ground Rent review period ≥10 years
- Ground Rent escalation ≤RPI

NEW BUILD PROPERTIES (includes office conversions)

Unacceptable - advise Issuing Office (Will be declined)
- Unexpired lease term <125 years on a new build flat or <250 years on a new build house (does not apply to Shared Ownership)
- Starting Ground Rent >0.1% of the property value
- Ground Rent review period ≤ 5 years
- Ground Rent doubles < every 20 years (e.g. doubles every 5, 10 or 15 years)
- Ground Rent is compounded RPI

Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges >£500 p/a (please provide details of what the charges cover)
- Service Charges >0.5% of property value p/a (please provide details of what the charges cover)
- Anything else appears onerous, unusual or out of the ordinary

Acceptable (no requirement to advise Issuing Office):
- Unexpired lease term ≥125 years on a new build flat or ≥250 years on a new build house
- Starting Ground Rent ≤0.1% of the property value
- Ground Rent review period >5 years
- Ground Rent escalation ≤RPI

* Where the Ground Rent escalation is linked to the value of the building, please provide the following:
- How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property?
- The current valuation and Ground Rent for each unit
- What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned?
- What is the right of appeal? And is this a documented process within the lease?
- Who bears the cost of the valuation (and appeal) process?
- Confirmation the review period is not less than twenty years
Nedbank Private Wealth Ltd We require am unexpired lease term of 80 years.
New Street Mortgages 85 years from the date of completion of the mortgage
NRAM Ltd The mortgage terms plus 25 years.
Paragon Buy to Let Mortgages The unexpired term of the lease must have a minimum of 85 years at the commencement of the mortgage term and a minimum unexpired lease term of 65 years must remain at the end of the mortgage term.
Paragon Residential Owner-Occupied Mortgages The unexpired term of the lease must have a minimum of 85 years at the commencement of the mortgage term and a minimum unexpired lease term of 65 years must remain at the end of the mortgage term.
Paratus AMC Ltd 50 years unexpired at the end of the mortgage term.
Parity Trust Mortgage term plus 35 years
Pepper Money The lease must have a minimum unexpired term of 85 years at the time of completion.
Pepper Money (PUK) The lease must have a minimum unexpired term of 85 years at the time of completion.
Platform (a trading name of The Co-operative Bank p.l.c.) 70 years unexpired at application, 30 years at the end of the mortgage term, except where the mortgage application is pursuant to Platform's participation in the Government's Help to Buy Shared Equity scheme, in which case (a) the unexpired lease term must not be less than 250 years for new-build houses and not less than 125 years for new-build flats and (b) ground rent must be reasonable at all times and any escalation must be linked to RPI (Retail Price Index) or a similar index.
Precise Mortgages (Charter Court Financial Services Ltd) 70 years unexpired on the lease at completion of the loan advance.
Principality Building Society You should notify the Society where the unexpired term of the lease is 85 years or less. The Society's lending policy is that it requires a minimum unexpired lease term of 85 years.
Rooftop Mortgages Ltd  
Saffron Building Society There must be a minimum of 50 years unexpired lease remaining at the end of the mortgage term.
Sainsbury's Bank The unexpired term should be no less than 85 years at the commencement of the mortgage term.
Santander UK plc You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Scottish Building Society Unexpired term of lease must be at least 50 years at end of mortgage term.
Scottish Widows Bank Minimum of 70 years unexpired at the start of the mortgage.
Secure Trust Bank PLC 85 years from the date of the mortgage.,
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary



St James Place Bank Minimum 70 years from the date of the mortgage.
State Bank of India UK The unexpired term of the lease must have a minimum of 55 years at the commencement of the mortgage term and a minimum unexpired lease term of 30 years must remain at the end of the mortgage term.
Swansea Building Society Mortgage Term plus 50 years
Tesco Bank (a trading name of Tesco Personal Finance plc) Mortgage term plus 30 years (subject to a minimum unexpired term of 55 years). Please contact us as detailed in 1.11b should this not be the case.
For new build properties, the following lease terms are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
If the lease cannot be amended to comply with the above, the case cannot proceed. Please advise us immediately where the case cannot proceed.
Contact point as detailed in 1.11b.
The Mortgage Business Minimum 70 years from the date of the mortgage.
The Mortgage Lender Limited For Residential (owner occupied) mortgages the unexpired term of the lease should not be less than 40 years at the scheduled end of the mortgage period.

For Buy to Let mortgages the unexpired term of the lease should not be less than 50 years at the scheduled end of the mortgage period.

The Mortgage Works Minimum unexpired lease term is 70 years with 30 years remaining at the end of the mortgage term.
Ground Rents and event fees must be reasonable at all times during the term of the lease. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us for Valuer consideration. See the guidance below.

SECOND HAND PROPERTIES

Unacceptable - advise Originations (Will be declined):
- Unexpired lease term <70 years
- Ground Rent >0.5% of the property value
- Ground Rent doubles <every 20 years (e.g. doubles every 5, 10 or 15 years)
- Ground Rent is compounded RPI
- Ground Rent review period ≤5 years

Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Unexpired lease term is 70 to 85 years
- Ground Rent >0.1% and ≤0.5% of the property value
- Ground Rent escalation is linked to any indices greater than RPI
- Ground Rent escalation is linked to the value of the building*
- Ground Rent review period is >5 and <10 years
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges >£500 p/a (please provide details of what the charges cover)
- Service Charges >0.5% of property value p/a (please provide details of what the charges cover)
- Anything that appears onerous, unusual or out of the ordinary

Acceptable (no requirement to advise Originations):
- Unexpired lease term >85 years
- Ground Rent ≤0.1% of the property value
- Ground Rent review period ≥10 years
- Ground Rent escalation ≤RPI

NEW BUILD PROPERTIES (includes office conversions)

Unacceptable - advise Originations (Will be declined):
- Unexpired lease term <125 years on a new build flat or <250 years on a new build house
- Starting Ground Rent >0.1% of the property value
- Ground Rent review period ≤ 5 years
- Ground Rent doubles < every 20 years (e.g. doubles every 5, 10 or 15 years)
- Ground Rent is compounded RPI

Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges >£500 p/a (please provide details of what the charges cover)
- Service Charges >0.5% of property value p/a (please provide details of what the charges cover)
- Anything else appears onerous, unusual or out of the ordinary

Acceptable (no requirement to advise Originations):
- Unexpired lease term ≥125 years on a new build flat or ≥250 years on a new build house
- Starting Ground Rent ≤0.1% of the property value
- Ground Rent review period >5 years
- Ground Rent escalation ≤RPI

* Where the Ground Rent escalation is linked to the value of the building, please provide the following:
- How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property?
- The current valuation and Ground Rent for each unit
- What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned?
- What is the right of appeal? And is this a documented process within the lease?
- Who bears the cost of the valuation (and appeal) process?
- Confirmation the review period is not less than twenty years
The Royal Bank of Scotland plc Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
The Royal Bank of Scotland plc Direct Line Mortgages Mortgage term plus 30 years and sixty years remaining at drawdown.
The Royal Bank of Scotland plc Direct Line One Mortgage term plus 30 years.
The Royal Bank of Scotland plc First Active Mortgage term plus 30 years.
The Royal Bank of Scotland plc Natwest one Account Mortgage term plus 30 years.
The Royal Bank of Scotland plc One Account Mortgage term plus 30 years.
The Royal Bank of Scotland plc Virgin One Mortgage term plus 30 years.
The Tipton & Coseley Building Society Mortgage term plus 60 years with a minimum of 85 years outstanding at completion.
Together Personal Finance Limited 50 years remaining at the end of the mortgage term.
Topaz Finance Ltd Mortgage term plus 35 years.
TSB Bank plc Mortgage term plus 30 years subject to an overall minimum term of 70 years
Ulster Bank Ltd Mortgage term plus 30 years.
Vida Homeloans For capital and interest mortgages there should be 40 years of the lease remaining at the end of the mortgage term. For interest only or part interest only there should be 70 years of the lease remaining at the end of the mortgage term.
Virgin Money 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Whistletree (a trading name of TSB Bank plc) The mortgage term plus 30 years
Yorkshire Bank Home Loans Ltd Mortgage term plus 30 years.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Zephyr Mortgages For Zephyr: the requirement is for a minimum unexpired lease term of 70 years remaining at the end of the mortgage term.

You must refer to Zephyr if onerous obligations are determined.