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What lenders may check on lease length, ground rent, service charges and building safety, and what to ask before you make an offer.
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Buying a leasehold property means buying a lease: the right to live in the property for a fixed number of years, on terms set by the freeholder. A lender is lending against that lease, so it may look as closely at the lease and the building as it does at you.
A leasehold property can still be mortgaged with a wide range of lenders. But a buyer with a strong income and a large deposit may still find an application slowed, or declined, because of something in the lease or the building. Knowing what lenders may check, before you make an offer, can save time and help you choose a lender whose criteria suit the property.
A lender will typically assess whether the property will remain acceptable security for the length of the mortgage, and whether the next buyer’s lender will lend on it. A short lease, an escalating ground rent or an unresolved building safety issue can affect a property’s value and saleability, whatever the borrower earns.
Lenders typically set their own minimum lease length, which may depend on how much you borrow and the length of the mortgage term. For example, some lenders may accept around 55 years remaining at application, but ask for 90 years or more where you borrow a higher proportion of the property’s value. Some lenders also require a set number of years to remain on the lease after the mortgage ends.
A lease that works comfortably for one lender can be too short for another. The Leasehold and Freehold Reform Act 2024 may make lease extensions easier, including allowing 990-year extensions, but most of its provisions are not yet in force.
Some lenders look closely at how the ground rent can change over time, and may not lend where it is high compared with the property’s value, doubles at regular intervals, or rises in line with the compounded Retail Price Index.
For example, a ground rent of £350 a year that doubles every 10 years would be £5,600 a year after 40 years. The government’s draft Commonhold and Leasehold Reform Bill, published in January 2026, proposes capping ground rents at £250 a year, subject to Parliament. Until changes take effect, lenders typically assess the lease as it is written today.
Service charges can affect how much you may be able to borrow, as well as the cost of owning the property. Some lenders include ground rent and service charges as commitments when assessing affordability, and some refer higher service charges to their valuer. A building with significant works ahead may face rising service charges, so it is worth asking what is planned.
If you are buying a flat, some lenders also ask about the building itself, particularly since the Grenfell Tower fire: its height, its external walls and balconies, and who would pay if safety defects needed putting right.
The Royal Institution of Chartered Surveyors (RICS) standard that has applied to mortgage valuations since 1 November 2026 sets out when a valuer should request an External Wall System fire review form (EWS1). It also states that “Specific lender guidance always takes precedence over this professional standard”, so lenders can approach the same building differently. Some lenders rely on the leaseholder protections in the Building Safety Act 2022 and may not ask for further information on taller buildings in England. Others, where their valuer raises a concern, may ask for an EWS1, an appraisal of the external walls, or a signed letter from the person responsible for the building together with a current fire risk assessment (FRA).
These documents are typically held by the freeholder or managing agent, not by the buyer or the seller, and can take weeks to obtain.
Private Finance is a whole-of-market mortgage broker. We compare criteria across a wide range of lenders, including how each treats lease length, ground rent, service charges and building safety. We can review the lease and building information you have, help identify lenders whose criteria may suit the property, and help gather what a lender asks for. Whether a mortgage is available, and on what terms, depends on your circumstances, the property and each lender’s criteria.
To discuss your mortgage requirements, contact Private Finance on 0800 652 0971 or info@privatefinance.co.uk, or use the enquiry form.
This article is based on information available on the date of issue, 4th November, 2026.
Disclaimer: The views and opinions expressed in this content are those of the author and do not constitute financial, legal, or professional advice, nor should they be interpreted as a recommendation. They do not necessarily reflect the official views, policies, or positions of Private Finance, and are not intended to represent broader market or industry perspectives.
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