Sell a Flat With a Short Lease

Why leasehold flats get stuck on the market

Short lease

Once a lease drops to 80 years or fewer, extending it becomes significantly more expensive because of a charge called “marriage value”. Many lenders won’t approve a mortgage on it at all. The Leasehold and Freehold Reform Act 2024 is due to abolish marriage value, but that part isn’t yet in force, so check the current position.

High or unpredictable service charges

Buyers and their lenders get nervous about service charges that jump from year to year, or a managing agent who won’t explain them. A large Section 20 major-works bill can stop a sale entirely.

Cladding or building-safety issues

Flats in affected buildings can be effectively unmortgageable until the remediation work and paperwork, such as an EWS1 form, are sorted. That’s often outside any individual leaseholder’s control.

Unresponsive freeholder

Some freeholders or managing agents are slow or unreachable. That can stall the leasehold information pack a buyer’s solicitor needs.

Onerous ground rent

Ground rent was banned on most new residential leases from 2022. Older leases with a high or rapidly doubling ground rent can still put lenders off.

What we can do that a normal buyer can’t

We’re not trying to get a mortgage on your flat. So a short lease, a messy service-charge history or a slow freeholder doesn’t rule us out, as it would a typical buyer. We price the property honestly for its actual situation, and we move at a pace that doesn’t depend on a lender’s approval.

No need to extend the lease, or to start the statutory extension process, before selling.
No lender criteria on lease length, service charges or ground rent.
We can often proceed while the freeholder is slow to supply information.
Sell with tenants in place if the flat is let. See landlord exit.

Should you extend first, or sell as-is?

Extending the lease before selling can raise the price by more than the extension costs, but you pay the premium and legal fees up front and wait months. Selling as-is is faster and costs you nothing up front, but the price reflects the short lease. We’ll show you both sides with real figures. Here’s an illustrative example.

Common questions

Do I need to extend the lease before I sell to you?

No. We factor the remaining term into our offer. Extending first can sometimes get you a higher price overall, but it means paying the premium and legal costs up front and waiting months. We’ll help you compare the two honestly.

What if my freeholder won’t respond to enquiries?

We’re used to this. It’s one of the most common reasons leasehold sales stall. Your conveyancer will still request the leasehold information pack, but we can often proceed with less information than a mortgage lender would require.

Will you buy if there are cladding or building-safety issues?

We’ll look at every case. Our appetite depends on the building, the remediation position and the paperwork available, including any EWS1 form or landlord’s certificate. Tell us what you know, and we’ll give you a straight answer — including a straight “no” if we can’t help.

How much less will a short lease reduce my price?

It depends on how many years remain, the property’s value, and the ground rent. Below 80 years the effect gets steeper, and below about 60 years it can be substantial. Our written offer will show how the lease has been factored in.

Isn’t the law on lease extensions changing?

Yes. The Leasehold and Freehold Reform Act 2024 is set to remove marriage value and change how extension premiums are calculated, but the relevant parts aren’t yet in force. It’s worth asking a leasehold specialist whether waiting could benefit you. If you need to sell now, a short lease doesn’t rule us out.

I own a share of the freehold — is that different?

Usually it’s simpler. You may be able to extend your own lease with the other freeholders’ agreement, sometimes at little cost. We buy share-of-freehold flats too.

Own a leasehold flat that’s hard to sell? We buy them as they are.