Leeds enables long-term tenancies on buy-to-let lending
Leeds Building Society has changed its lending criteria to benefit longer-term tenants and landlords.
The UK’s fifth largest mutual said it will now accept tenancy agreements of any length, and will not stipulate a maximum tenancy period, which was previously set at 12 months.
Most lenders have a 12 month maximum tenancy length, while a handful allow three years or have no maximum.
“This is a good example of our strategy of supporting borrowers who are not well served by the market,” said Richard Fearon, Leeds Building Society’s chief commercial officer.
“By demonstrating flexibility and not imposing a maximum tenancy period we are helping to support our Buy to Let borrowers.”
Tenants want longer terms
According to research from Shelter, 70% of renters would value a term between three and five years and the homeless charity has welcomed moves from lenders to amend longer-term tenancy criteria.
David Hollingworth, spokesperson for London and Country Mortgages, said: “More people are renting for longer but often find that they have little security of tenure, with tenancies often offered only as a six to 12 month option.
“Leeds Building Society’s removal of the maximum tenancy period will help increase choice for landlords and their tenants, both of whom may prefer a longer-term tenancy agreement to be in place.”