Can I Get Equity Release on a Flat?
Equity release is available on many flats, but lenders apply more detailed criteria to flats than to freehold houses. Lease length is the most common obstacle — followed by floor level, construction type, and whether the property is ex-local-authority.
Equity release on flats is possible, but the lease must typically have enough years remaining at the end of the plan — not just at the start. Lease length, floor level, and construction type all matter to lenders.
The lease length requirement — and why it catches people out
Most equity release lenders require the unexpired lease to be at least 75–85 years remaining at the projected end of the plan, not just at the outset. Because lifetime mortgages typically run for 15–30 years before repayment is triggered, a flat with 95 years on the lease today might have only 65–80 years left by the time the lender is repaid — which would fail many lenders' criteria from day one.
This is counterintuitive: you might assume a 95-year lease is comfortably adequate, but the lender is assessing the position at life expectancy, not today. A lease extension before applying often resolves this, but extensions take time and cost money. The Leasehold Reform Act changes and ongoing legislation affecting leasehold properties is an active area of law — current position should be confirmed with a solicitor.
Floor level and high-rise properties
Some lenders apply maximum floor level restrictions — typically declining flats above the fourth or fifth floor. Others will lend on high-rise properties but apply lower loan-to-value ratios or specific conditions. A flat on the second floor of a converted Victorian house faces a very different assessment than a flat on the fifteenth floor of a modern tower block.
Ground floor flats are generally treated more favourably than upper floors, though some lenders have concerns about security and demand at ground level too. The specifics depend heavily on the individual lender's criteria at the time of application.
Ex-local-authority and construction type
Flats in former council blocks are accepted by some lenders and declined by others. The key factors are typically the construction method (non-standard construction types — concrete panels, prefabricated elements — are harder to lend against), the management and condition of the building, and service charge levels. Unmaintained communal areas or very high service charges can reduce the marketability and therefore the lender's comfort with the property as security.
Modern methods of construction (MMC) and some newer flat types may also face restrictions depending on the lender's panel of approved valuers and their comfort with specific construction systems.
Ground rent and service charges
Lenders assess whether the flat is likely to remain saleable — meaning they consider whether the lease terms, ground rent schedule, and service charges are reasonable and compliant with current legislation. Onerous ground rent clauses (particularly those that double regularly) can make a flat harder to sell and may cause a lender to decline. The Leasehold Reform (Ground Rent) Act 2022 capped new ground rents at a peppercorn, but older leases with escalating ground rents remain an issue.
Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026
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