Hi, can anyone help?

I have a client that owns a lease hold property where the lease only had 13/14 years left to run. She has taken out an interest only mortgage to pay for a new 125 year lease that cost £25,000.

Does anyone know if she can receive interest payments for this type of mortgage as it was not purely taken to pay for the purchase of the property?

Thanks.

The regulations say "to acquire an interest in the dwelling occupied as the home". Although the previous interest was leasehold, and the new one is also leasehold, it is certainly arguable that there is a difference of substance in view of the extension of the term.

I take it that your client was not in receipt of pension credit when she took out the mortgage - if she was she cannot claim housing costs (subject to a few exceptions which don't seem to apply here).