We’ve changed the way we calculate leasehold properties

Leasehold home owners could be eligible for a more favourable Loan To Value (LTV)

As part of our commitment to offer clients the best possible lifetime mortgage, we are changing the way we calculate LTVs for clients with leasehold properties. By linking the length of the leasehold with the age of the youngest owner we may be able to offer a greater LTV, giving these clients more flexibility when choosing how much equity they wish to release from their home.

We’ve changed the way we calculate LTV on leasehold properties  

The LTV amount on leasehold properties  will be worked out based on how long the lease has left to run and how old the youngest applicant is. The greater the sum of the remaining leasehold and the youngest applicant’s age, the higher the  LTV available.

Although this change will apply to all leasehold properties – houses, flats and maisonettes – the biggest impact will be for flat and maisonette owners. 

The new approach will be available from 18 July to new lifetime mortgage applicants, those applying for additional borrowing and clients who wish to port their mortgage so need to submit a moving property application.   

Added flexibility for your client’s lifetime mortgage

Throughout the equity release journey our aim is always to make each lifetime mortgage as individual as your client. Every applicant’s circumstances are different and we want to reflect this in our leasehold LTV.

Entering the correct lease length during the application process is key. An inaccurate figure could lead to a requote, which would significantly delay the application for your client. Please make sure you obtain the lease information during your initial client fact find. 

For more information, including minimum lease lengths and examples demonstrating how the LTV will work for your clients, please take a look at our technical guide. We’ve also put together a list of FAQs, designed to help you navigate these changes.