London property values and typical equity
The table below shows indicative 2025-26 London average property values by broad zone and the equity a typical homeowner might access via a secured loan, assuming an existing 70% first-charge mortgage.
| Zone | Typical Value | Typical 1st Mortgage | Available to 75% Total LTV |
|---|---|---|---|
| Prime Central (W1, SW1, SW3) | £1,200,000+ | £840,000 | £60,000+ |
| Inner Zone 2 (SW11, N1) | £700,000 | £490,000 | £35,000–£45,000 |
| Outer Zone 3 (SE6, NW2) | £550,000 | £385,000 | £27,500–£40,000 |
| Outer Zone 5 (CR0, UB6) | £450,000 | £315,000 | £22,500–£35,000 |
At 80% total LTV with a higher-LTV specialist such as Together Money, available equity roughly doubles. Prime-central high-value cases (property values over £1.5m) typically require specialist valuation and may be directed to private-bank or HNW-focused lenders rather than mainstream second-charge products.
Leasehold flats: lease length and lender criteria
Around 35% of London properties are leasehold flats, and lease length is a critical factor for second-charge lenders. Most UK specialists require an unexpired lease term of at least 65 to 75 years at the end of the loan, meaning a flat with 90 years remaining can typically support a 15 to 25-year secured loan. Shorter leases (below 80 years today) need to be extended either before application or via a formal statutory lease extension process under the Leasehold Reform, Housing and Urban Development Act 1993.
The Leasehold and Freehold Reform Act 2024 — still being implemented through secondary legislation — extends statutory lease-extension rights and is expected to reduce marriage-value premiums over time. For borrowers with leases near the 80-year threshold, a lease extension (typical cost £5,000 to £25,000 including premium and fees) may be a prerequisite to secured lending. Specialist lenders such as Together Money and Shawbrook will occasionally lend against shorter leases, but at higher rates.
For share-of-freehold flats and flying-freehold houses, lender appetite varies. United Trust Bank and Shawbrook are comfortable with share-of-freehold; fewer lenders accept flying freehold. Your broker should flag the tenure structure at application stage to avoid late-stage declines.
Cladding, EWS1 forms and post-Grenfell lending
Since the Grenfell Tower fire of 2017, UK lenders have tightened criteria for flats in buildings with external wall systems (EWS) of combustible materials. The EWS1 form — a fire safety assessment of the external wall — is required for most blocks over 11 metres in height for lending purposes. Many London blocks built between 1995 and 2017 used cladding systems that have since been found to require remediation, and lending on flats in those blocks is often restricted or declined pending remediation.
The government’s Building Safety Act 2022 and Developer Remediation Contract programme have accelerated remediation. Buildings on the accelerated programme may still struggle to secure new lending until remediation is complete. If you live in a building on a remediation programme, ask the freeholder’s managing agent for a copy of the EWS1 (valid for five years) or evidence that remediation is in progress and agree with the freeholder that you can share this with lenders.
Lenders with more pragmatic post-Grenfell criteria include Together Money, Shawbrook and West One. Mainstream second-charge lenders often decline cladding-affected blocks regardless of remediation status. If this applies to you, go directly to a specialist via an experienced London broker.
Buy-to-let secured loans in London
London’s BTL market is substantial but has faced structural headwinds: Section 24 mortgage-interest tax restrictions for individual landlords (phased in from 2017 to 2020), the 3% additional stamp-duty surcharge on second homes, increased regulation via selective licensing schemes in many boroughs, and tighter rental-cover affordability tests requiring rent to cover at least 125% to 145% of mortgage interest at stressed rates.
Specialist BTL second-charge lenders in London include Shawbrook Bank, Together Money, West One, Precise Mortgages and United Trust Bank. Rental-cover calculations use a stressed rate (typically 5.5% to 7%) and a cover ratio of 125% for basic-rate taxpayers, 145% for higher-rate, and sometimes 160% for portfolio landlords with four or more properties. London rental yields of 3% to 5% in Zones 1 to 3 and 4% to 6% in Zones 4 to 6 often just meet these thresholds at moderate LTV.
For portfolio landlords, Shawbrook and West One will look at the whole portfolio’s performance rather than just the property being borrowed against. This can be helpful when one marginal property holds back an otherwise strong portfolio. Expect three to five additional business days for portfolio underwriting.
