Mortgage on a leasehold property

Leasehold property mortgages offer a pathway to homeownership when the property you wish to buy doesn’t come with ownership of the land it sits upon. This is common with flats, apartments, and some houses, especially in England and Wales.

Understanding the different aspects of a leasehold mortgage, including ground rent, service charges, and the remaining lease term, is crucial to making an informed decision. It’s essential to know that the specifics of your leasehold agreement can impact not only your ownership rights but also the type of mortgage you can obtain, the rates available, and the potential for future property sales.

Whether you’re a first-time buyer or considering remortgaging, our guide aims to illuminate the path to obtaining and managing a mortgage on a leasehold property, providing the information you need to navigate the journey successfully.

What is a leasehold mortgage?

A leasehold mortgage is a type of mortgage that is taken out on a leasehold property. In contrast to freehold properties, where the owner has ownership of the property and the land it sits on indefinitely, leasehold properties are those where the individual owns the property but not the land it is built on. The land is leased from the freeholder (or landlord) for a specified period of time, known as the term of the lease.

The mortgage, therefore, is secured on the borrower’s leasehold interest in the property. The length of the lease is a significant factor in securing a mortgage; lenders will typically require a certain number of years to be remaining on the lease when the mortgage term ends.

This type of mortgage is common in parts of the world where leasehold property is a standard form of ownership, such as in the UK, especially in the case of flats and apartments. It can be more complex than a mortgage on a freehold property due to additional factors like ground rent and service charges, as well as the declining value of the property as the lease term decreases.

Can I get a mortgage on a leasehold property?

Yes, you can get a mortgage on a leasehold property. However, it’s important to understand that it can be more complex compared to obtaining a mortgage for a freehold property due to several additional factors to consider.

Length of the lease: The length of time remaining on the lease is one of the most crucial factors. Many lenders require the lease to extend for a certain number of years beyond the end of your mortgage term. If the lease is relatively short, it could affect your ability to secure a mortgage, or it may affect the terms of any mortgage you can get.

Ground rent and service charges: Leasehold properties often come with additional costs, such as ground rent and service charges, which may affect your affordability calculations. It’s crucial to factor these costs in when considering how much you can afford to borrow.

Lease terms: Some leases may include restrictions or conditions that could affect your use of the property, which could, in turn, influence a lender’s willingness to offer a mortgage. It’s essential to review the terms of the lease carefully.

Future lease extensions: If the lease on a property is relatively short, you may need to consider the cost and process of extending the lease, which can be expensive and potentially complicated.

How does a mortgage on a leasehold property work?

A mortgage on a leasehold property works in much the same way as a mortgage on a freehold property, but with some additional factors to consider due to the nature of leasehold ownership.

Here’s the general process:

1. Property Selection and Agreement: You find a leasehold property you’d like to buy, and you agree on a price with the seller.
2. Mortgage Application: You then apply for a mortgage, much like you would for any other property. The lender will consider your credit history, income, expenses, the property’s value, and, crucially, the terms of the lease, including the number of years remaining on it.
3. Lease Terms Review: Lenders are particularly interested in the length of the lease remaining because it can significantly affect the property’s value over time. Most lenders will require that the lease extends for a certain number of years beyond the end of the mortgage term. For example, many lenders require that the lease still has at least 70-80 years remaining at the time you apply.
4. Survey and Valuation: The mortgage lender will commission a survey of the property to confirm its condition and market value. The surveyor will also consider the remaining length of the lease and any associated costs (like service charges and ground rent) in their valuation.
5. Mortgage Offer: If the lender is satisfied with the results of the survey and you meet their lending criteria, they will make a formal mortgage offer.
6. Completion: If you accept the offer, legal work will be completed, contracts exchanged, and finally, the mortgage lender will release the funds, allowing you to complete the purchase. You’ll then start making your monthly mortgage repayments as agreed.

How does a leasehold work?

A leasehold is a type of property tenure where a person, known as the leaseholder, has the right to use and occupy a property for a set period of time as specified by the lease agreement. This agreement is made with the freeholder (also known as the landlord or lessor), who owns the property outright, including the land it sits on.

Here are the key aspects of how a leasehold works:

1. The lease term can be quite long – often 99, 125, or even 999 years, though the length can vary. The property’s value can depreciate as the lease gets shorter, especially when it drops below 80 years.
2. The leaseholder usually has to pay an annual charge known as ground rent to the freeholder. The amount and terms should be outlined in the lease agreement.
3. If the property is part of a larger building or development (like a flat in an apartment building), the leaseholder may also have to pay service charges. These charges cover the cost of maintaining and running the building’s common parts, such as hallways, lifts, gardens, and shared facilities. The service charge might also include building insurance.
4. As the lease term gets shorter, leaseholders may have the legal right to extend their lease, but this process can be costly.
5. The lease will have certain conditions that the leaseholder must adhere to. This can include restrictions on what alterations can be made to the property, obligations to keep the property in good repair, or even restrictions on owning pets.
6. In some cases, leaseholders may have the right to collectively purchase the freehold of their building, a process known as enfranchisement. This can give leaseholders greater control over the costs of living in their property.
7. When you sell a leasehold property, you are essentially selling the remaining years of the lease. The new owner then takes over the lease under the same terms and conditions.

Which lenders are more leasehold friendly

Most mainstream banks and building societies in the UK do lend on leasehold properties, including but not limited to:

• HSBC
• Barclays
• Lloyds Bank
• Nationwide Building Society
• Santander
• Halifax

Remember, the terms and conditions may vary from lender to lender, especially with regard to the minimum length of the lease they will accept. Typically, lenders require the lease to be at least 70-80 years at the start of the mortgage, but the specifics can vary.

Will my leasehold mortgage be more expensive?

A mortgage for a leasehold property isn’t necessarily more expensive in terms of interest rates or fees than one for a freehold property. The factors that influence the cost of the mortgage itself, such as your credit score, deposit size, income, and the property’s value, work in the same way whether the property is leasehold or freehold.

However, owning a leasehold property often comes with additional costs that don’t apply to freehold properties. These can include:

Ground Rent: This is an annual charge that leaseholders must pay to the freeholder. The amount can vary greatly and may increase over time depending on the terms of the lease.

Service Charges: These are fees for maintenance of the building’s common areas and provision of services, such as cleaning, gardening, and general upkeep. This is common when the leasehold property is a flat in a larger building.

Lease Extension Costs: As the length of the lease decreases, it might become necessary to extend the lease, which can be expensive. A shorter lease can also devalue the property and make it harder to sell.

Permission Fees: Leaseholders might need to pay a fee to the freeholder if they want to make significant alterations to the property, or in some cases, for routine things like subletting or selling the property.

When you consider these additional costs, a leasehold property could end up being more expensive overall compared to a freehold property. It’s essential to consider all these potential costs when deciding whether to buy a leasehold property and how much you can afford to borrow.

How much does a mortgage for a leasehold cost?

The cost of a mortgage for a leasehold property will depend on various factors, just like any other mortgage. These factors include:

Interest Rate: This is the cost of borrowing and is expressed as a percentage of the loan. The rate can be fixed or variable. Your interest rate will be determined by various factors, including your credit score, loan-to-value ratio, and the term of the loan.

Deposit: This is the amount you pay upfront towards the purchase of the property. The remainder of the purchase price is made up by the mortgage. The larger your deposit, the smaller your mortgage will be and the less interest you will pay over the term of the loan.

Term of the Loan: This is the length of time over which you’ll repay the mortgage. The longer the term, the lower the monthly payments will be, but the total amount of interest paid over the term will be higher.

Fees and Charges: These include arrangement fees, booking fees, valuation fees, and others that the lender may charge. Some lenders may offer lower interest rates but with higher fees, or vice versa.

How much does a short lease devalue a property?

A short lease can significantly devalue a property in the UK, and this can be a crucial factor for buyers, sellers, and investors to consider. The potential devaluation due to a short lease can be influenced by various factors, including the remaining term of the lease, ground rent, and the potential costs involved in extending the lease. In prime locations, where property values are significantly high, even a slightly shortened lease can result in a substantial decrease in property value due to the absolute amounts at play.

In terms of exact figures, it’s challenging to determine precisely how much a short lease will devalue a property without delving into specifics, as it can depend heavily on the aforementioned variables. Nonetheless, it’s commonly acknowledged within the UK property market that a short lease can significantly curtail a property’s value and desirability, with some properties being devalued by as much as 20% to 30%, or even more in extreme cases, depending on the remaining length of the lease and other contextual factors.

Moreover, the UK Leasehold Reform Act grants tenants the right to extend their leases, but the length of the remaining lease significantly impacts the cost of doing so. The shorter the lease, the more expensive it becomes to extend it. Specifically, once a lease dips below 80 years, a “marriage value” is applied, which can notably increase the lease extension cost, thereby acting as a further deterrent to potential buyers.

Can I extend the lease on my property while still under a mortgage?

Yes, it’s generally possible to extend the lease on your property while it’s still under a mortgage, and in many cases, it’s a good idea to do so. Lease extensions can maintain or even increase the property’s value, and they can prevent issues with remortgaging or selling the property in the future.

However, extending a lease can be a complicated and potentially expensive process. There are often costs involved, including a premium paid to the freeholder for the lease extension, plus legal fees and possibly a valuation fee.

Before you proceed with a lease extension, you should:

Check Your Mortgage Agreement: Some lenders may require you to seek permission before changing the terms of your lease, so check your mortgage agreement or speak with your lender before you proceed.

Seek Legal Advice: It’s a good idea to seek advice from a solicitor who specializes in lease extensions. They can guide you through the process and help ensure that you’re getting a fair deal.

Consider the Costs: Make sure to consider the costs involved and how they’ll be funded. You might need to seek additional borrowing from your current mortgage lender or another source to cover these costs.

Finally, in England and Wales, there are laws that give leaseholders the right to extend their lease or even buy the freehold after they’ve owned the property for two years. These rights can provide a more formal route to extending the lease, but they still involve costs and potential negotiations with the freeholder.

Can I buy the freehold?

Yes, in many cases, leaseholders do have the right to buy the freehold of their property, a process known as “enfranchisement”. This process can give you more control over your property, eliminate ground rent, and potentially make the property more attractive to future buyers.

In England and Wales, the law allows leaseholders of flats to join together to buy the freehold of their building if they meet certain criteria, a process known as “collective enfranchisement”. To qualify, the building must meet certain requirements, and at least 50% of the leaseholders in the building must participate.

For leaseholders of houses, there is a separate legal right to buy the freehold of their property, known as the “right of first refusal”.

Both processes can be complex and potentially costly, involving legal and valuation fees plus the cost of the freehold itself. So, it’s important to get legal advice before proceeding.

Also, it’s important to note that mortgage lenders often have requirements regarding changes to the property’s tenure, so you should consult your lender or a mortgage advisor before buying the freehold.

What happens if the lease on my property runs out while I still have a mortgage?

When the lease on the property runs out, ownership technically reverts back to the freeholder, which can create significant issues if you still have a mortgage on the property. However, in practice, it’s highly unlikely that a lease would run out during your ownership, as leases are typically granted for very long periods (often 99 or 125 years, or even as long as 999 years).

Moreover, mortgage lenders usually require a certain number of years left on the lease at the time you take out the mortgage. They do this to ensure that the lease won’t run out while the mortgage is still in place. For instance, a lender may require that a lease has at least 70-80 years left on it at the time the mortgage begins.

If you find yourself in a situation where the lease is nearing its end, there are typically options available to you:

1. Lease Extension: As a leaseholder, you usually have the right to extend your lease. This is often the best course of action if your lease is starting to get short, but it can be costly.
2. Enfranchisement: In some cases, you might have the option to buy the freehold, either on your own or collectively with other leaseholders. This would give you full ownership of the property, effectively making it freehold and removing the issue of a diminishing lease.
3. Negotiation with the Freeholder: Alternatively, you could try to negotiate a new lease or an informal lease extension with the freeholder.

Is a leasehold property a good idea?

Whether buying a leasehold property is a good idea or not depends on your circumstances and needs, as well as the specifics of the leasehold agreement.

It’s important to fully understand the terms of the lease and consider the potential costs before buying a leasehold property. Professional advice from a solicitor or a leasehold expert can be invaluable in this process.

Advantages and disadvantages of leasehold properties

Leasehold properties come with their own set of advantages and disadvantages, which are important to understand if you’re considering buying one. Here’s a brief overview:

Advantages of Leasehold Properties:

Affordability: Leasehold properties, particularly flats, can be more affordable than freehold properties, making them a good option for first-time buyers or those on a tight budget.

Less Responsibility: If you’re part of a leasehold block of flats, you won’t be directly responsible for maintaining the building or the land, as this is typically the freeholder’s responsibility. Costs for maintenance and repairs are usually shared among leaseholders.

Location: Many flats, especially in city centres, are leasehold. If you’re keen on living in a central location, buying a leasehold property might be your best or only option.

Disadvantages of Leasehold Properties:

Ground Rent and Service Charges: Leaseholders usually have to pay ground rent to the freeholder, as well as service charges for the upkeep of the building’s common parts. These costs can add up and increase over time.

Decreasing Lease Term: As the length of the lease decreases, it can devalue the property and make it more difficult to sell or secure a mortgage. Extending the lease can be costly.

Restrictions: The lease agreement may include restrictions on what you can do with the property. This could include restrictions on owning pets, subletting, or making certain alterations to the property.

Ownership Limitations: As a leaseholder, you don’t own the land the property is built on, and this lack of control can be a disadvantage for some people.

In the end, the decision to buy a leasehold property will depend on your personal circumstances and preferences, as well as the specifics of the property and lease. It’s important to fully understand the terms of the lease and the potential costs before making a decision.

Why do mortgage lenders check the length of a lease?

Mortgage lenders check the length of a lease on a leasehold property for several reasons:

Property Value: The value of a leasehold property is directly tied to the length of the lease. As the lease gets shorter, the property’s value can decrease. This could be a risk for the lender, as they might not be able to recover the full loan amount if they had to sell the property due to repossession.

Resale Potential: Properties with shorter leases can be harder to sell, as potential buyers may face the same issues with obtaining a mortgage. In addition, they might be put off by the potential costs and legal complexities of extending the lease.

Security of the Loan: The property acts as the security for the mortgage loan. If the lease expires during the mortgage term, the property reverts to the freeholder, which could leave the lender without the necessary security for the loan.

For these reasons, many lenders require that a leasehold property has a certain number of years left on the lease at the time the mortgage is taken out. The exact requirements can vary between lenders, but typically they’ll want the lease to extend for at least 70-80 years from the start of the mortgage.

Can I get a mortgage on a short-leasehold property?

Getting a mortgage on a property with a short lease can be challenging, but it’s not impossible. Many mortgage lenders require a lease to have at least 70 to 80 years remaining at the time the mortgage is taken out. If the lease term is shorter, lenders may be hesitant to provide a mortgage due to concerns about the property’s resale value and the risk associated with the loan.

If you’re looking to purchase a property with a short lease, you generally have a couple of options:

1. Lease Extension: The current owner might be able to extend the lease before selling the property. This can be a costly process, and it usually involves paying a premium to the freeholder, but it can make the property more attractive to mortgage lenders and increase its market value.
2. Specialist Lenders: Some lenders specialize in providing mortgages for properties with short leases. However, these mortgages often come with higher interest rates and fees to compensate for the increased risk.
3. Cash Purchase: If you have sufficient funds, you could buy the property outright and then extend the lease after the purchase.
4. Short Lease Mortgages: Some lenders may offer specific mortgage products designed for short-lease properties. They might be more flexible with their lease length requirements, but these mortgages often come with their own set of conditions and requirements.
5. Lease Extension Post Purchase: It’s possible to negotiate a term in your contract that allows for the lease to be extended after the purchase but at the cost calculated prior to the completion of the sale.

What makes a leasehold different from a freehold?

The main difference between a leasehold and a freehold lies in the ownership and responsibilities associated with the property.

Freehold:

Ownership: If you own a freehold property, you own the building and the land it stands on outright. It is your property until you decide to sell it.

Responsibility: As the freeholder, you are responsible for maintaining the building and the land. This includes everything from the roof to the gardens and driveways.

Costs: There are usually no additional costs other than routine maintenance and repair expenses.

Control: You have more control over the property. You don’t have to deal with a freeholder or pay any ground rent, and a lease imposes no restrictions.

Leasehold:

Ownership: If you own a leasehold property, you have the right to live in the property for a set period, known as the ‘lease term’. The land the building stands on is owned by the freeholder (or ‘landlord’).

Responsibility: Responsibility for maintaining the building often lies with the freeholder or a management company. As a leaseholder, you might be responsible for maintaining the interior of your property, but this depends on the terms of your lease.

Costs: As a leaseholder, you may have to pay ground rent to the freeholder, service charges for the upkeep of common areas, and a share of the building insurance.

Control: Leasehold properties often come with restrictions, which could include obtaining the freeholder’s consent for certain alterations or not subletting without permission.

Lease Term: Over time, the lease term diminishes. When the lease term expires, the ownership of the property reverts back to the freeholder unless the lease is extended.

In general, houses are often sold as freehold properties, while flats are typically sold as leasehold, although there can be exceptions. It’s important to understand these differences before purchasing a property, as they can affect your responsibilities, costs, and your rights as a property owner.

How does the length of a lease affect the mortgage rate on a leasehold property?

The length of a lease on a leasehold property can significantly impact the mortgage rate and, in some cases, whether a mortgage lender is willing to lend at all. Generally, as the remaining term on a lease gets shorter, it can make a property less attractive to mortgage lenders for a few reasons:

1. Risk to the Lender: The shorter the lease, the more risk there is to the lender. If the lease expires while the mortgage is still outstanding, the property reverts back to the freeholder, which could leave the lender without the necessary security for the loan.
2. Property Value: As the lease term decreases, the value of the property can fall, and it may continue to depreciate unless the lease is extended. This depreciation can affect the lender’s ability to recover their money if they ever need to sell the property due to a borrower’s default.
3. Resale Potential: A short lease can make a property harder to sell. Future potential buyers may also struggle to secure a mortgage, further limiting the pool of potential buyers and impacting the resale value.

How does the ground rent on a leasehold property impact my ability to get a mortgage?

Ground rent is a regular payment that a leaseholder makes to the freeholder as part of the conditions of the lease. When considering a leasehold property, it’s important to understand the details of the ground rent. This includes the amount, frequency of payment, and potential for increases over time, as it can affect your ability to obtain a mortgage.

Mortgage lenders will consider ground rent along with service charges and other outgoings when assessing your ability to afford the mortgage. If the ground rent is high, it might affect how much you can borrow.

Some leasehold contracts contain clauses that allow the ground rent to increase significantly over time. These clauses can affect your long-term affordability and can make lenders hesitant, as it increases the risk of you not being able to maintain your mortgage payments in the future.

Are freehold mortgages better?

Whether a freehold mortgage is “better” than a leasehold mortgage can depend on your personal circumstances, preferences, and the specifics of the property and lease agreement. However, there are some advantages to having a mortgage on a freehold property compared to a leasehold property:

Full Ownership: With a freehold, you own the property and the land it’s on outright, and it remains yours indefinitely. With a leasehold, you only own the property for the length of the lease and do not own the land.

No Ground Rent or Service Charges: Freehold properties don’t come with ground rent or service charges, which leaseholders often have to pay. These charges can sometimes increase significantly over time.

Fewer Restrictions: Freeholders don’t have to comply with the kind of restrictions that leaseholders often face, such as obtaining consent for certain alterations or not being allowed to sublet.

Simpler to Mortgage and Sell: Because you don’t have to consider lease length, ground rent, or service charges, freehold properties can be simpler to mortgage and sell.

However, freehold properties also come with their own responsibilities. As a freeholder, you’re responsible for the maintenance of the building and the land, which can be costly. Also, many flats, especially in city centres, are leasehold, so if you’re keen on this type of property or location, a leasehold may be your only option.

Remortgaging a leasehold

Remortgaging a leasehold property works in much the same way as remortgaging a freehold property, but there are additional factors to consider due to the nature of leasehold ownership.

When remortgaging, the new mortgage lender will consider the following factors:

1. Remaining Lease Term: Mortgage lenders will need to know the remaining term of your lease. Generally, lenders require at least 70 to 80 years left on the lease at the start of the mortgage. If your lease is nearing this limit, it could make remortgaging more difficult.
2. Ground Rent and Service Charges: The lender will also consider the ground rent and service charges associated with the property. If these charges are exceptionally high, it could impact your affordability calculations. Any clauses that allow for significant increases in these charges could also cause concern for the lender.
3. Lease Conditions: The lender may review the terms of your lease. Some leases contain clauses that could negatively impact the property’s value or your rights as a leaseholder, which could affect the lender’s decision.

Buy-to-let (BTL) mortgages for a leasehold property

Buy-to-let (BTL) mortgages for a leasehold property work similarly to those for a freehold property, but there are additional considerations due to the leasehold nature of the property. When considering a BTL mortgage for a leasehold property, lenders will review several key factors:

1. As with all mortgages on leasehold properties, lenders will want to know the remaining term of the lease. Typically, a leasehold property must have at least 70-80 years left on the lease at the time you apply for the mortgage.
2. Lenders will also take into account the ground rent and service charges associated with the property. High charges can impact your profitability and, therefore, your ability to keep up with mortgage repayments.
3. Some leases may include restrictions on letting the property. You must check the terms of your lease to ensure that renting out the property is allowed and under what conditions.
4. As with any BTL mortgage, lenders will also be interested in the potential rental yield of the property. The potential rental income must usually be 125-145% of the mortgage payment, depending on the lender’s criteria.
5. The lender will look at your income, credit history, and whether you already own other properties.
6. Remember, with a BTL mortgage, the fees, interest rates, and deposit required are often higher than with a residential mortgage. Also, if you plan to live in the property at the same time as letting out parts of it, you might need a specific type of mortgage, such as a “let-to-buy” or “consumer buy-to-let” mortgage.

Finding the best mortgage rates for leasehold properties

To find the best mortgage rates for leasehold properties, consider the following steps:
Research and Compare: Look at different mortgage lenders and their criteria, rates, and terms. This can be done online or through a broker.

Work with a Broker: A mortgage broker with experience in leasehold properties can be invaluable. They understand the complexities and potential issues, have knowledge of different lenders and their criteria, and can negotiate on your behalf.

Check Your Credit Score: Lenders will consider your credit score when deciding whether to lend to you and at what rate. Make sure your credit score is in good shape before you apply for a mortgage.

Improve Your Affordability: Lowering your debt-to-income ratio and saving for a larger deposit can improve the mortgage rates you’re offered.

Consider Lease Extension: If the remaining term on your lease is close to a lender’s minimum requirement, it could be worth considering extending the lease to access better rates.

How to compare mortgage rates for leasehold properties?

Comparing mortgage rates for leasehold properties follows a similar process as for freehold properties, with some additional considerations due to the nature of the leasehold. Here’s how you can approach it:

1. Understand Your Needs: Determine how much you need to borrow, how long you want the mortgage term to be, and whether you want a fixed or variable-rate mortgage. This will help narrow down the types of mortgage products you should compare.
2. Consider the Impact of Leasehold Factors: Consider the remaining lease term, the annual ground rent, service charges, and any lease restrictions. These factors can significantly influence the range of lenders willing to offer you a mortgage and the rates they provide.
3. Gather Information: Use online comparison websites to get a general idea of what’s available. Most of these sites allow you to input your details and provide you with a list of potential mortgage options.
4. Speak to a Mortgage Broker: Brokers have access to a wide range of mortgage products, including those not directly available to the public. They can offer advice tailored to your situation and help you navigate the more complex aspects of leasehold mortgages. Some brokers are specialists in leasehold properties and may be able to offer more nuanced advice.
5. Look at the Entire Package: While the interest rate is a significant factor, don’t forget to consider the overall cost of the mortgage. Look at fees, penalties, the flexibility of the mortgage terms, and any tied-in periods.
6. Check Lender’s Criteria: Some lenders are more leasehold-friendly than others. They may have more flexible criteria when it comes to minimum lease length or how they treat ground rent and service charges.

How a broker can help with leasehold mortgages

A mortgage broker can be an invaluable resource when it comes to securing a mortgage on a leasehold property. They can provide guidance and expertise on various aspects of the process:

1. Understanding Leasehold Terms: Brokers can help you understand the terms and conditions of the leasehold, including how factors such as ground rent, service charges, and the remaining lease term might impact your mortgage options.
2. Access to a Wide Range of Lenders: Brokers have access to a wide range of mortgage products and lenders, including some that aren’t directly available to the public. They can match your needs with lenders who are more leasehold-friendly or have more flexible criteria when it comes to factors like minimum lease length.
3. Tailored Advice: Every leasehold property is unique, and a broker can provide advice tailored to your specific circumstances. They can help you navigate potential challenges and provide solutions to problems you may encounter during the process.
4. Negotiation: Brokers can negotiate on your behalf with lenders to secure the most favourable rates and terms.
5. Simplifying the Process: Applying for a mortgage can be a complex and time-consuming process, even more so with leasehold properties. A broker can help streamline the process, handle much of the paperwork, and liaise with the lender on your behalf.
6. Long-Term Strategy: If your lease term is short, a broker can help you devise a strategy, such as extending your lease before applying for a mortgage or finding a lender who is comfortable with a shorter lease.