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What Happens If My Lease Is Too Short?

01 September 2025

When it comes to remortgaging a leasehold property, the length of your lease is one of the first things a lender will look at.

A short lease can limit your mortgage options and, in some cases, prevent you from remortgaging altogether.

This blog post looks at why lease length matters, what to do if yours is running short, and how recent reforms may affect your decision.

Why does lease length matter?

Mortgage lenders want security. A property with a short lease is seen as higher risk, which is why most lenders insist on at least 90 years left on the lease.

• 90+ years: usually acceptable to most lenders.
• 80–89 years: you may find options limited or need to extend.
• Below 80 years: costs rise, and mainstream lenders are unlikely to approve.

In short: the fewer years you have, the harder and more expensive it becomes to remortgage.

What happens if my lease is too short?

If your lease falls below 90 years, you may face one of the following:

• Your remortgage application is declined.
• You’re offered less favourable rates or terms.
• Only specialist lenders are prepared to consider your application.

This doesn’t mean remortgaging is impossible, but your choices are reduced. In many cases, extending your lease first is the most practical solution.

How a lease extension can help

Extending your lease not only opens up remortgage opportunities, it also benefits your property in other ways:

• Increases value – a longer lease is more attractive to buyers.
• Wider choice of lenders – more mortgage products become available.
• Peace of mind – you avoid the steep costs that apply once the lease drops below 80 years.

Can I remortgage during a lease extension?

Yes, in some cases. Lenders may agree to proceed if they know the lease extension is underway. Some will even allow completion of both at the same time. Others will insist the extension is finalised first.

Being upfront with your lender or broker is key.

How long does a lease extension take?

Timeframes vary depending on the freeholder:

• Cooperative freeholder: around 8-10 weeks.
• Disputed or formal process: 6-9 months or longer.

This is why we always recommend starting discussions early if you are considering a remortgage.

Leasehold reforms: should I wait?

The Leasehold and Freehold Reform Act 2024 has been passed but not yet implemented. Once it comes into force (likely 2026 or later), leaseholders should benefit from:

• Abolition of marriage value (reducing costs under 80 years).
• The right to extend for 990 years rather than 90.
• No automatic obligation to cover the freeholder’s legal/valuation fees.

For many leaseholders, waiting could save money. But for those remortgaging under tight deadlines, delaying simply isn’t practical.

Next steps

If your lease is approaching or below 90 years and you’re considering a remortgage, taking advice early is essential.

Our leasehold specialists can:

• Review your lease and mortgage position.
• Advise on the best timing for an extension.
• Handle negotiations with your freeholder.
• Guide you through the remortgage process.

Contact our property team today to discuss your situation, protect your home’s value and enquire about your remortgage options. Call 01202 526343 or send us a message online: Contact Us AB Solicitors For Your Legal Needs

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