Text for CQS CPMS Policy
CQS Policy: Implication of 35-Year Mortgages on Leasehold
Purchase this policy: Purchase of a Leasehold policy
- Change date
- 07/11/2023
- Word count
- 190
- Deployment measure
- 9/10
Rationale
Lenders have been increasing their minimum unexpired lease term requirements since 2008. The majority of lenders now set their calculations based on specifying a number of years remaining beyond the mortgage term. Given that 20% of mortgages are now 35 years or longer this directly impacts the mortgageability of certain leaseholds it is imperative that staff are aware that the underlying client needs to be advised accordingly
Nearly twenty per cent of all loans taken out by our first-time buyers were for terms of longer than 35 years. This percentage is likely to increase given the direction of interest rates and the economic climate. This change directly
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