Can you get Equity Release on a Leasehold Property?

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Get a Lifetime Mortgage in a Leasehold Property 

What are the costs?

Get a Lifetime Mortgage in a Leasehold Property 

Yes, you can get equity release (a lifetime mortgage) on a leasehold property subject to the lease and property meeting your lenders criteria.  

You can get equity release on both kinds of property type: 

• Leasehold flats. 
• Leasehold houses.  

Your lender will be interested in the length of the lease, and your age, or the age of your partner if they are younger, and how many years is left on the lease along with the terms and conditions.

Each lender will have different criteria surrounding leasehold properties so it’s important to seek mortgage advice from an experienced later life advisor.

What are the costs?

Your equity release lender will look at the charges included in your lease such as: 

• Ground rent. 
• Service charges. 
• Insurance costs. 
• Any other commitments.  

There are rules and regulations surrounding how much some of these costs are for mortgage companies therefore a thorough check in completed.

If you do not have enough years left on the lease for your lender, most will let you so a lease extension application at the same time to meet the criteria. Your equity release application will only complete once your lease extension has been actioned.

A lease extension will incur additional legal fees however, but it’s better for the resale value of the property.  The additional legal fees will need to be factored into the overall cost for you for your consideration and whether you still want equity release.

As with all equity release plans, there may be other products and services more suitable for you and your situation such as regular mortgages or retirement interest only (RIO) options for leasehold properties.  

Written by
Dan Osman
Head of Later Life at UK Moneyman Ltd.
CeMAP & CeRER Qualified

14th March 2024

Date Last Edited:

About the Author

Dan Osman

Head of Later Life at UK Moneyman Ltd.

Dan joined the Financial Services sector back in 2002, but actually left the industry in 2008 before returning some years later. During the in-between years, he took a degree to become a Social Worker specialising in working with vulnerable adults.

Upon his return, Dan combined his experiences in the two sectors to become an Equity Release Specialist and he now heads up UK Moneyman’s Later Life Lending proposition. He genuinely believes in a holistic approach and always ensures his clients receive a proper consideration of all the options available, including non-lending alternatives to Equity Release.

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