Short Lease Mortgages

Minimum 18 Year Lease

Flats & Houses

Central London

Lease Extension Funding

60% Loan to Value

London Lease Extension Mortgage (Exclusive)

Capital Fortune are pleased to announce the launch of their exclusive London Lease Extension Mortgage.

The mortgage permits applicants to borrow up to 60% of the market value to purchase the property - even with a lease as low as 18 years. The lender will then consider lending up 85% of the value of the property once the lease has been extended.

It was quite an easy decision to make….the run of the mill mortgage brokers really were not going to be able to help me on this one. I would recommend Capital Fortune to any one asking and I do so too.
Joe Crosby, Golders Green

The term of the mortgage is up to 5 years and can be taken out either on a repayment basis or part interest only basis

How it Works

To illustrate how the scheme works, it is best to use an example.

Let’s assume that the mortgage applicants wish to purchase a property valued at £500,000 today with an 18 year lease.

They require a 3 year mortgage term.

They require 60% loan to value i.e. £300,000 at the outset (i.e. 60% x £500,000).

The lender would not want the mortgage to be more than 60% of the estimated property value at the end of the mortgage in three years time. If the property was estimated to be worth £440,000 then the lender would require the mortgage balance at that time to be £264,000 (i.e. 60% x £440,000).

The lender would initially release £300,000 to assist the mortgage applicants in purchasing the property. The lender would require the Section 42 Notice “Deed of Assignment” process to start on the day of completion.

They arranged a re-mortgage for us…. which was unusual and certainly must have been difficult. It went through smoothly, more smoothly than any other mortgage I've taken out.
RH, Stanmore

The mortgage would be arranged on a part repayment/part interest only scheme with £36,000 on a repayment basis and £264,000 on an interest only basis. This would ensure the mortgage balance was £264,000 in three years time.

Once a price had been agreed to extend the lease, the lender would consider providing a new mortgage up to 75% of the value of the property to assist in purchasing the lease extension. This new mortgage would be from their standard range of mortgages and could be requested over a longer term – such as 25 years. So in this example, if the property was valued at £600,000 with the new lease, the lender could consider lending up to £450,000 (75% x £600,000) subject to affordability checks etc.

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