Top 10 questions (and answers) about selling a short lease flat

Selling a short lease flat in the UK can be difficult, especially for first-time sellers or those unfamiliar with leasehold rules. A lease with fewer than 80 years can raise red flags for buyers and lenders alike, making it a more complex process than selling a flat with a long lease. However, with the right strategy, preparation, and legal advice, it is entirely possible to achieve a successful sale.

In this guide, we’ll break down the top 10 questions sellers commonly ask when selling a short lease flat, providing practical answers to help you navigate the process. Whether you’re deciding whether to extend the lease before selling, or figuring out how to attract the right kind of buyer, these insights will give you a clearer picture of what to expect and how to prepare.

Key points to consider:

• Short leases (under 80 years) impact both property value and buyer interest.
• You may need to consider a lease extension or assign the right to extend to the buyer.
• Mortgage availability is limited on short leases, narrowing your buyer pool.
• Pricing accurately is crucial to attracting cash buyers or investors.

Understanding these elements is essential to successfully selling a short lease flat in today’s market.

1. What is considered a short lease in the UK?

A lease is generally considered “short” when it has fewer than 80 years remaining. This threshold is important because once the lease falls below 80 years, it starts to have a negative impact on the property’s value and saleability. Moreover, once the lease dips below this point, something called “marriage value” becomes payable when extending the lease, which can significantly increase the cost.

When selling a short lease flat, this 80-year cut-off is crucial. Many buyers and mortgage lenders view anything under this threshold as a risk. The shorter the lease, the more pronounced the issues:

• Property value typically drops as lease length decreases.
• Fewer mortgage options are available to buyers.
• Cost of lease extension rises—especially once it drops below 80 years.

If you’re planning on selling a short lease flat, knowing where your lease stands and how close it is to key cut-off points (e.g. 80, 70, or 60 years) can help you make informed decisions about pricing, marketing, and whether to extend before sale.

2. Can I sell a flat with a short lease?

Yes, you absolutely can sell a flat with a short lease, but it’s often more challenging than selling a flat with a longer lease. The main hurdle is that a short lease typically limits your pool of potential buyers, especially those relying on a mortgage to purchase.

Many mainstream mortgage lenders have strict requirements, usually needing at least 70–80 years left on the lease. As a result, buyers who are interested in short lease flats are often cash buyers or seasoned investors who are comfortable navigating the lease extension process themselves.

That said, selling a short lease flat is not impossible—it simply requires careful preparation. You may need to:

• Adjust your pricing to reflect the cost and risk associated with the short lease.
• Highlight the potential to extend the lease, especially if you’ve already owned the flat for over 2 years and can assign the right to extend.
• Target the right audience, such as cash buyers, investors, or buyers looking for renovation projects.

With the right approach, you can still achieve a good result when selling a short lease flat, even if the lease term is under 80 years.

3. How does a short lease affect property value?

A short lease can have a significant negative impact on a property’s market value. When a lease has fewer than 80 years remaining, buyers and lenders view it as a risk, which typically results in a lower sale price. The shorter the lease, the steeper the decline in value.

One of the main reasons for this devaluation is the added cost of lease extension, especially when the lease drops below 80 years. At this point, the concept of “marriage value” comes into play—this is the increase in property value that arises from extending the lease, and the freeholder is entitled to 50% of this increase. This makes lease extensions more expensive and can put off potential buyers.

If you’re selling a short lease flat, here are key ways it affects value:

• Buyers often reduce offers to account for the high cost of future lease extension.
• Mortgage lenders may refuse finance, reducing your buyer pool and market demand.
• The property becomes harder to sell, especially if the lease has dropped below 70 or even 60 years.

As a result, anyone selling a short lease flat needs to be prepared for the impact on valuation, and should consider obtaining a professional lease extension quote to help inform pricing strategy.

4. Should I extend the lease before selling?

If you’re planning on selling a short lease flat, one of the most strategic decisions you can make is whether or not to extend the lease before putting it on the market. If you can afford to do so, extending the lease is usually a wise move.

A longer lease can:

• Increase the property’s market value, often by a significant margin.
• Make the flat more attractive to a wider range of buyers, particularly those needing a mortgage.
• Speed up the sales process by eliminating the legal and financial complications that come with a short lease.

Extending the lease before sale can also give you greater control over pricing and marketing. Buyers are far more likely to make strong offers when they know they won’t have to deal with the cost and legalities of lease extension straight away. In fact, many buyers actively avoid short lease flats altogether, so extending the lease can help you tap into a much larger pool of potential buyers.

However, the process of extending the lease involves time, legal work, and cost, so it may not be practical for everyone. If you’ve owned the property for at least two years, you have a legal right to extend under the Leasehold Reform Act. If you’re not in a position to extend it yourself, you can still sell the flat by assigning the right to extend to the buyer, but you’ll likely need to reduce the asking price to reflect the short lease.

In summary, if you’re selling a short lease flat, extending the lease beforehand can be a game-changer—enhancing its value, marketability, and appeal. 

5. Can the buyer extend the lease instead?

Yes, if you’re selling a short lease flat and are unable or unwilling to extend the lease yourself, you can still make the sale more appealing by assigning your statutory right to extend the lease to the buyer. This process is known as a lease extension assignment and is commonly used in short lease sales.

This right can then be legally transferred to the buyer during the sale process, allowing them to begin the extension as soon as they complete the purchase.

This approach is particularly attractive to:

• Cash buyers and investors who are familiar with lease extensions.
• Buyers looking for a discount upfront with plans to extend the lease themselves.

Key advantages of assigning the right:

• Avoids the time and cost of extending the lease before sale.
• Makes your flat more marketable to buyers who understand the process.
• Enables a faster sale without the delay of waiting for the extension to be completed.

If you’re selling a short lease flat and can’t or don’t want to extend the lease in advance, this can be a practical and strategic solution to help get your property sold.

6. How much does a lease extension cost?

If you’re selling a short lease flat, it’s essential to understand the potential costs involved in extending the lease, as this can heavily influence your pricing and sales strategy. The cost of a lease extension can vary widely based on several key factors:

• The current length of the lease – The fewer years remaining, the more expensive the extension is likely to be.
• The value of the flat – Higher-value properties will typically attract higher extension premiums.
• The annual ground rent – Properties with higher ground rents can result in increased costs to extend.

In general, lease extension costs can range from a few thousand pounds to tens of thousands, especially if the lease has fallen below the 80-year threshold where marriage value becomes payable. This significantly increases the premium due to the freeholder.

In addition to the premium paid to the freeholder, you’ll also need to factor in professional fees, including:

• Valuation fees for a specialist lease extension surveyor
• Legal fees for both the leaseholder and the freeholder

Altogether, the full cost of a lease extension can often total £5,000–£15,000 or more, depending on the lease specifics.

If you’re preparing for selling a short lease flat, having a lease extension quote or at least a reliable estimate from a RICS valuer can help you price your flat accurately and negotiate confidently with potential buyers.

7. Can you get a mortgage on a short lease flat?

Securing a mortgage on a short lease flat can be extremely challenging. Most mainstream mortgage lenders require a lease to have at least 70–80 years remaining, and anything below that is often deemed too risky for traditional financing. This creates a major obstacle for potential buyers who are not cash purchasers.

If you’re selling a short lease flat, this financing limitation significantly reduces your buyer pool, as many interested parties may simply be unable to obtain a mortgage. Instead, your main audience will likely consist of:

• Cash buyers who don’t require a mortgage
• Buy-to-let investors who may use alternative financing options
• Specialist lenders who offer high-interest loans for short lease purchases

Buyers may also face stricter lending terms, including:

• Higher deposit requirements (sometimes 30% or more)
• Increased interest rates or less favourable terms
• Restrictions based on remaining lease length (e.g., needing at least 85 years at the end of the mortgage term)

Because of these challenges, if you’re selling a short lease flat, it’s crucial to highlight either the potential for a lease extension or the possibility of assigning the right to extend. This helps reassure buyers and may improve their ability to finance the purchase through a lender willing to consider post-completion extensions.

8. Will a short lease put off buyers?

Yes, a short lease can definitely deter many potential buyers, especially those who are relying on mortgage financing or who lack experience with leasehold properties. Most first-time buyers and residential purchasers prefer properties with leases over 85 years, as they are easier to mortgage, hold value better, and do not come with the added cost and legal complexity of a lease extension.

If you’re selling a short lease flat, it’s important to understand the different buyer mindsets:

• First-time buyers and families are typically discouraged by short leases due to limited financing options and concerns about future resale value.
• Investors and cash buyers, on the other hand, may see a short lease as an opportunity—particularly if the property is priced competitively and there’s a chance to extend the lease and increase the flat’s value.

That said, the key to success when selling a short lease flat lies in:

• Clear communication about the lease length and any progress made toward extension
• Targeting the right audience—such as landlords, investors, and developers
• Pricing strategically to reflect the reduced lease and limited buyer pool

While short leases are off-putting for many, they can be attractive to buyers who understand the process and see the long-term potential.

9. How should I price a short lease flat?

When selling a short lease flat, pricing is one of the most critical factors for attracting the right type of buyer. Since short lease properties are seen as higher risk due to limited mortgage availability and potential lease extension costs, they often need to be priced below the market value of similar properties with longer leases.

To determine a realistic asking price, consider the following:

• Compare with local properties: Look at recently sold flats in your area with longer leases and adjust the price downward based on the lease length and the cost to extend.
• Factor in the cost of a lease extension: Buyers will take into account how much they’ll need to spend on extending the lease, so subtract this from your property’s full market value.
• Understand market expectations: Short lease flats typically appeal to cash buyers and investors, who expect a discount to reflect the effort and cost involved post-purchase.

For accuracy, it’s advisable to get a professional valuation from a RICS surveyor. They can assess the flat’s value in its current state and offer insight into how the lease length is affecting the price.

If you’re selling a short lease flat, setting the right price will not only attract serious buyers but also help you justify your valuation during negotiations. Being transparent about the lease term and any steps you’ve taken toward extension can also improve buyer confidence and lead to a faster sale.

10. Who buys short lease properties?

If you’re selling a short lease flat, your most likely buyers will be:

• Cash buyers who don’t rely on mortgage funding
• Property investors looking for value-added opportunities
• Developers or portfolio landlords who are familiar with the leasehold system

These buyers are typically more comfortable with the risks and responsibilities that come with buying a flat on a short lease. They usually have:

• The funds to purchase outright, bypassing mortgage restrictions
• The experience to handle lease extensions or negotiations with freeholders
• A long-term view of the property’s investment potential, especially if they plan to renovate, extend the lease, or let the property out

When selling a short lease flat, marketing directly to this audience can save time and lead to more serious enquiries. These buyers often move more quickly and are less deterred by legal complexities. That’s why it’s essential to be upfront in your property listing about the lease length, whether you’ve initiated an extension, and if the buyer will have the right to extend after purchase.

By targeting the right type of buyer, you can maximise your chances of a smooth and successful sale despite the shorter lease.

Final Tip:

Be transparent about the lease length in your listing. Highlight whether you’ve started the extension process or are open to assigning it to the buyer.
Selling a short lease flat isn’t impossible—it just takes the right pricing, legal preparation, and marketing approach.