Selling a short lease flat?

What Is a Short Lease Flat?

A short lease flat is a leasehold property where the remaining term of the lease is considered low, typically under 80 years. In England and Wales, when you purchase a leasehold flat, you are not buying the physical building or the land it sits on - those belong to the freeholder. Instead, you are acquiring the right to occupy the property for the remaining duration of the lease. This lease is a legally binding agreement that sets out the rights and obligations of both you (the leaseholder) and the freeholder, such as who maintains which parts of the building and what service charges are payable.

Most residential leases originally last between 99 and 125 years. However, as the term of the lease ticks down, the property’s value generally declines - sometimes dramatically. A shorter lease equates to a diminishing asset. The situation is further complicated by a number of legal and financial thresholds. Most lenders are cautious about offering mortgages on flats with fewer than 80 years left, and many will not lend at all once a lease drops below 70 years. As such, the property can become increasingly difficult to sell as the lease shortens.

As of 2025, there are an estimated 1.5 million leasehold flats in England and Wales, many of which are ex-local authority or located in purpose-built blocks. London has a particularly high concentration of such properties. It’s estimated that hundreds of thousands of these flats are now approaching or already within the 'short lease' category. Many owners are unaware of this issue until they try to sell or remortgage and are told the lease term is a problem - often to their surprise and frustration.

Understanding the status of your lease early can help you plan your next steps effectively, whether you are looking to sell, extend the lease, or simply understand your property’s true market position.

Why Is a Short Lease a Problem When Selling?

Short lease flats can be difficult to sell for several interconnected reasons, each of which adds to the complexity and potential cost of the transaction:

• Mortgage Restrictions: Most mainstream mortgage lenders have minimum lease requirements. While some may consider leases just under 80 years, the pool of available lending products shrinks rapidly as the lease length decreases. Once a lease falls below 70 years, many high street lenders will not provide a mortgage at all, meaning the property is only viable for cash buyers. This severely limits the potential buyer pool.

• Reduced Market Value: The value of a leasehold flat declines as the lease shortens. This isn’t a gradual decline - the depreciation accelerates the closer the lease gets to critical thresholds (80, 70, and especially 60 years). In valuation terms, buyers factor in the cost of a future lease extension, legal fees, and potential delays. This can result in substantial discounts compared to similar flats with longer leases.

• Buyer Hesitation: Short leases create uncertainty. Buyers unfamiliar with leasehold law may be deterred by the legal jargon and potential costs involved. Even seasoned investors will conduct rigorous due diligence, which can prolong the sales process. The prospect of negotiating with a freeholder, calculating marriage value, or facing leasehold reform changes may be enough to put off less confident or risk-averse buyers.

• Legal and Administrative Complexity: Leasehold transactions involve more legal scrutiny than freehold ones. When dealing with a short lease, solicitors must verify whether the lease is extendable, if the seller has started or completed a statutory extension, and whether the freeholder is responsive. These added complications can delay completion or derail sales entirely if issues arise during the conveyancing process.

How Do I Get Confirmation on the Lease Length?

To check your lease term, you can order an official copy of your title register and lease document from HM Land Registry using their Find a Property Service. This service provides key details including the length of your lease, the date it was granted, and the name of the freeholder. It’s a vital first step if you are considering selling your flat.

The cost is currently just £7 for a digital download, making it an affordable and reliable method to obtain legally accurate information about your property. Ensure that you use the official government website, which will always end in ".gov.uk" - there are other websites that offer similar services but charge much higher fees for the same information. The process is straightforward and does not require a solicitor; you’ll need the full address or title number of your property to complete the search.

Having this document to hand will not only clarify your current lease position but also help any prospective buyers, valuers, or solicitors quickly assess the legal standing of the property - which can help reduce delays later in the process.

How Short Is Too Short?

Generally:

• Under 80 years: This is the point at which "marriage value" becomes payable if you seek to extend your lease under the statutory process. Marriage value is the increase in the flat’s value that arises when the lease is extended - and under current legislation, 50% of this uplift must be paid to the freeholder. This makes lease extensions significantly more expensive once your lease dips below this threshold.

• Under 70 years: Falling below this benchmark often renders your property unmortgageable with mainstream lenders. This effectively reduces your pool of potential buyers to cash purchasers only. Mortgage restrictions also lower demand, which in turn can reduce the property’s value.

• Under 60 years: At this stage, the flat is likely to suffer from significant value depreciation. The cost of extending the lease becomes even higher, and many buyers (including some investors) will see the flat as a high-risk or specialist acquisition. Some might even categorise it as a ‘problem property’, especially if other factors - such as high service charges or an unresponsive freeholder - are also at play.

Each of these thresholds not only affects the practical saleability of the flat but also influences its perceived value and investment potential. It's crucial to understand where your lease currently stands in relation to these tipping points.

Can You Sell a Flat with a Short Lease (Without Extending)?

Yes, but expect some challenges and adjustments to your expectations:

• A smaller pool of cash buyers or investors: Most conventional buyers will be excluded from the market due to lending restrictions. This narrows your audience to specialist buyers, such as cash-rich investors or property companies who are comfortable dealing with leasehold complexities.

• Lower offers compared to similar properties with longer leases: The perceived risk and future cost of lease extension are factored into offers. Buyers may also factor in their own profit margins if they intend to resell after extending the lease, which can drive offers down further.

• Longer sale timelines due to buyer due diligence: Even when selling to experienced investors, the transaction can still take time. Buyers may want to obtain lease extension estimates, carry out legal checks, or assess freeholder responsiveness before committing.

That said, many investors and specialist property buyers actively seek out short lease flats precisely because of the price discount and the opportunity to add value. If marketed correctly and priced in line with market expectations, a short lease flat can attract serious interest and lead to a successful sale - even without a lease extension.

What Sort of Price Can I Expect If I Sell with a Short Lease?

There is no universal formula for valuing a short lease flat, but experienced surveyors and cash buyers often use a discounting method based on lease length, market conditions, and potential lease extension costs. Typically, the following ranges apply:

• 70–80 years: 5–15% discount from the full market value. While still technically mortgageable, buyers and lenders may apply caution, and a price adjustment is often needed to reflect the future cost of extending the lease.

• 60–70 years: 15–30% discount. This range marks a significant drop in buyer interest due to restricted mortgage availability. Buyers will typically factor in the cost and hassle of lease extension, which becomes more expensive below 80 years due to marriage value.

• Under 60 years: 30% or more. Properties with leases this short are usually only attractive to cash buyers or specialist investors, as most mainstream mortgage products are unavailable. The cost of lease extension is significantly higher, and the perceived risk increases, further depressing values.

It’s important to note that these are indicative ranges, and actual valuations will depend on factors like location, property condition, service charges, ground rent terms, and freeholder behaviour. In London, demand for property remains strong, and even flats with very short leases may attract multiple offers - particularly in sought-after areas or if priced correctly. Sellers often regard their short lease flat as a burden, but it's crucial to recognise that there is a market for these properties. With the right pricing strategy and target audience, sellers can still achieve a fair outcome without unnecessarily undervaluing their asset.

Options Before Selling: Extend or Sell As-Is?

Extend the Lease:

• Pros: Extending the lease before selling can significantly increase the market value of your flat and make it more appealing to a wider pool of potential buyers, especially those requiring a mortgage. Properties with longer leases are seen as lower risk and attract more competitive offers. It also removes the complexity and cost burden from the buyer, often leading to a smoother sale process. Additionally, once extended, the lease can add decades of security to the property, which is particularly attractive in the London market where demand is high but leasehold terms are frequently scrutinised.

• Cons: The process can be expensive, particularly if the lease has fallen below the 80-year mark where marriage value applies. You’ll need to budget for valuation fees, solicitor costs, and the premium payable to the freeholder. The process can also take several months, especially if the freeholder is slow to respond or negotiations are required. If time is of the essence, this route might delay your sale plans.

Sell As-Is:

• Pros: Selling the flat with a short lease avoids the upfront cost and potential delays involved in a lease extension. This can be a faster route to completion, particularly attractive if you need to release equity quickly or are facing financial pressure. It also transfers the responsibility of lease extension to the buyer, which may appeal to investors or developers who are used to navigating the process and can factor it into their plans.

• Cons: The property will be less attractive to mainstream buyers, particularly those needing a mortgage. As a result, the buyer pool is limited to cash purchasers or specialist buyers. Offers will likely be lower to reflect the cost and risk associated with the short lease, and some estate agents may be hesitant to take the property on due to the perceived complexity of the sale. You may also face tougher negotiations, with buyers attempting to further discount the price to accommodate future lease extension costs.

How Much Does It Cost to Extend a Lease?

Costs vary by flat value, lease length, and location. Expect the following:

• Valuation Fees: Typically between £500 and £1,000. This is paid to a qualified surveyor who will assess the current market value of your flat and the premium likely to be payable for a lease extension. It's a crucial part of the process, as the valuation forms the basis for negotiations with the freeholder.

• Legal Fees: Usually range from £700 to £2,000, though complex cases can cost more. These fees cover the work your solicitor will carry out in serving notices, reviewing lease documents, handling negotiations (especially if statutory), and overseeing the legal completion of the new lease.

• Premium to Freeholder: This is often the largest cost and can range from a few thousand to tens of thousands of pounds. The exact figure depends on your flat’s current value, the remaining lease term, ground rent terms, and whether marriage value applies (i.e. if the lease is under 80 years). The shorter the lease, the more expensive the premium.

You can extend the lease via two main routes:

• Statutory Route: This is a legal right available to leaseholders and is governed by the Leasehold Reform, Housing and Urban Development Act 1993. As of January 2025, the requirement to have owned the property for two years has been abolished, meaning leaseholders can now apply immediately. The statutory route provides legal safeguards, such as a fixed method of valuation and a right to extend the lease by 90 years with a peppercorn ground rent. However, it can be a lengthy process and may lead to a Tribunal if you and the freeholder cannot agree on the premium.

• Informal Route: This involves negotiating directly with your freeholder outside the statutory process. It can be faster and, in some cases, cheaper upfront. However, there are risks: freeholders can impose unfavourable terms, such as higher future ground rent or shorter extension terms. These can affect your flat's long-term value and mortgageability. Always seek legal advice before proceeding with this option.

In both cases, you should also budget for the freeholder’s reasonable legal and valuation fees - you are usually liable for these in addition to your own costs.

What If I Have a Difficult Freeholder?

A difficult or absent freeholder can introduce several layers of complexity and risk to the sale of a short lease flat:

• Delay lease extensions: If the freeholder is uncooperative, slow to respond, or disputes the valuation, the lease extension process can be dragged out for months or even years. This can deter buyers or prolong your sale timeline considerably.

• Reduce buyer confidence: Buyers may be reluctant to proceed with a purchase if they perceive the freeholder as problematic. Concerns over future interactions - such as major works, service charge disputes, or ground rent increases - can cause sales to fall through during the conveyancing process.

• Lower the value further: A flat with a short lease and a difficult or uncontactable freeholder is considered higher risk and less liquid, leading to a further reduction in market value. Some buyers will walk away entirely, while others will use it as leverage to negotiate a deeper discount.

In these situations, selling the flat as-is to a specialist buyer - such as an investor or company that regularly deals with complex leasehold issues - may be the most viable route. These buyers understand the risks, are prepared to navigate legal hurdles, and often have solicitors experienced in such matters.

Legal remedies do exist for absent freeholders, such as applying to the First-tier Tribunal to proceed with a lease extension or enfranchisement without the freeholder’s cooperation. However, these routes can be lengthy, require legal and valuation input, and involve significant upfront cost - all of which may be impractical if you are looking for a quicker sale. Always seek legal advice before pursuing such options.

Is It Worth Carrying Out Refurbishment Work When Selling a Short Lease Flat?

Usually not. Buyers of short lease flats are often investors or developers who:

• Prefer to carry out renovation work themselves to their own specifications

• Have access to trade discounts, bulk materials, and experienced contractors, making their refurbishment costs far lower than those of an average homeowner

• Are unlikely to pay a premium for recently completed upgrades, especially if they plan to restructure or reconfigure the layout

From a seller’s perspective, spending money on significant refurbishment (such as installing a new kitchen, replacing flooring, or upgrading bathrooms) is rarely cost-effective in the context of a short lease. You are unlikely to recover your investment, particularly when buyers are factoring in lease extension costs.

That said, presenting the flat in a clean, tidy, and well-lit condition can still make a difference. Small touches - like repainting scuffed walls, fixing minor defects, decluttering, and ensuring the property smells fresh - help create a better first impression and may support a smoother, faster sale. If you are unsure how far to go, focus on inexpensive cosmetic improvements rather than structural or costly enhancements.

Ultimately, even if you sell the property in dated or poor condition, there will still be demand from the right buyers - particularly those who are comfortable undertaking the work themselves and understand the opportunity that comes with a short lease.

How Long Does It Take to Sell a Short Lease Flat?

Expect longer timelines when selling a short lease flat, particularly if you are targeting the open market:

• Legal complexity: Leasehold sales generally involve more detailed legal work than freehold sales, and when the lease is short, solicitors will need to pay special attention to whether lease extension rights exist, if notices have been served, and if there are any historic disputes or complications in the lease terms. This adds time to the conveyancing process.

• Buyer mortgage issues: Buyers who are reliant on a mortgage may face repeated delays while their lender conducts additional checks. Some lenders may request independent valuations or decline to proceed at all if the lease is deemed too short - forcing buyers to withdraw or switch lender partway through a transaction.

• Leasehold red tape: Many short lease flats are in blocks managed by housing associations or local authorities, especially in London. These bodies can be slow to respond to solicitor enquiries, and their requirements (such as deed of covenant agreements, compliance certificates, or retrospective consents) can cause additional delays.

Even if you are selling to a cash buyer - which often does speed up the transaction - don’t assume it will be quick. Investors will still want to carry out full due diligence, including lease reviews, surveys, and possibly obtaining extension estimates. On average, expect a short lease sale to take longer than a standard flat sale, and plan accordingly.

Who Buys Short Lease Flats?

Cash Buyers

• Typically individuals or companies with immediate funds available, cash buyers are not reliant on mortgage financing. This gives them a major advantage in the short lease market, where many lenders are unwilling to lend. Because they bypass the mortgage process, cash buyers can act quickly and are often more flexible during negotiations. Their speed and certainty are often more appealing to sellers than potentially higher but riskier offers from mortgaged buyers.

Property Investors

• These buyers actively seek undervalued or structurally complex properties - and short lease flats fit that bill. Many property investors are experienced in lease extensions and understand how to calculate the associated costs and risks. They may also have established relationships with solicitors and valuers who specialise in leasehold properties, allowing for faster and more efficient transactions. Investors often aim to increase the value of the flat through lease extension, refurbishment, or eventual resale.

Developers

• Developers may be interested in acquiring short lease flats as part of a broader strategy, especially in blocks where multiple units are available. In some cases, acquiring several units gives them leverage to buy the freehold or redevelop the site altogether. They are typically undeterred by legal complexity and often prefer properties that present a challenge, provided the return justifies the risk.

These types of buyers are often prepared to handle the lease extension process themselves, and some may even view it as a core part of their business model. While their offers may be below the market value of a long lease flat, they offer certainty, speed, and a pragmatic approach - all of which are valuable if you're trying to sell a short lease property efficiently.

Can I Sell a Short Lease Flat Through an Estate Agent?

Yes. You can absolutely sell a short lease flat through an estate agent. However, it's important to understand the potential limitations and choose your agent carefully:

• Many agents are cautious: Traditional high street estate agents often prefer not to deal with short lease flats, particularly if they have limited experience handling leasehold properties. They may not understand the nuances or be confident in explaining the lease implications to potential buyers.

• Deals are more likely to fall through: Buyers introduced by agents may initially express strong interest but later withdraw when faced with mortgage rejections, legal complexities, or the cost of extending the lease. This can be frustrating and lead to wasted time and repeated marketing.

• Consider working with agents who specialise in leasehold or problem property sales: Niche or specialist agents are typically much better equipped to value, market, and sell short lease flats effectively. They often have a network of cash buyers or investors who actively seek this type of property and understand the risks and potential upside.

Estate agents can sometimes struggle to sell flats with short leases, and even when a buyer is found, these sales are more likely to fall through compared to properties with long leases. As a result, short lease flats often remain on the market for extended periods.  Additionally, be wary of agents over-promising on price or speed of sale. Ensure they are transparent about the challenges and realistic about timelines and valuations. A good agent will help manage buyer expectations and guide you through a smoother transaction.

How to Market a Short Lease Flat

• Be transparent about the lease length:

• Always include the exact number of years remaining on the lease in your marketing materials. This builds trust with prospective buyers and avoids wasted enquiries from those who cannot proceed.

Price realistically:

• Get a professional valuation from an agent or surveyor with experience in short lease properties. Take into account the cost of a lease extension and current market sentiment. Overpricing can lead to delays and multiple price reductions, which weaken your position.

Highlight potential:

• Emphasise the strengths of the flat - its location, proximity to transport links, potential rental yield, or development opportunities. Investors are often more focused on return on investment than cosmetic condition, so highlight any features that make it an appealing prospect.

Consider niche agents or platforms:

• Look for estate agents who specialise in short lease or “problem” properties, as they often have access to a network of serious cash buyers and investors. You may also consider marketing the flat on investor-specific portals or auction platforms that regularly deal with leasehold sales.

Selling to a Cash Buyer: Fast But Below Market?

Yes, cash buyers often:

• Move quickly: Because they are not reliant on mortgage approvals, surveys mandated by lenders, or extended conveyancing timescales, cash buyers can usually complete transactions within a matter of weeks. This can be particularly helpful if you're under time pressure due to financial issues, relocation, or a linked sale.

• Require significant discounts: In exchange for speed and certainty, cash buyers typically expect a discounted purchase price. This is partly because they will take on the cost and risk of extending the lease themselves, and partly because they are often professional investors aiming to generate a return.

However, they can be ideal if you want a swift, low-hassle sale. Cash buyers are used to navigating the complexities of short lease properties and are far less likely to pull out due to legal issues, lease terms, or lender objections. In situations where time, simplicity, and certainty are priorities, they can be the most pragmatic and reliable solution - even if it means accepting a lower price.

Selling a Short Lease Flat at Auction

Selling a short lease flat at auction can be a highly effective method for achieving a fast and reliable sale, particularly if the property has limited mortgageability or other complexities:

• Attracts informed buyers: Auction buyers are typically experienced investors, developers, or cash purchasers who understand the risks and rewards of short lease properties. They are usually not deterred by lease length, and many will have plans to extend the lease or refurbish the flat themselves.

• Transparent process: The auction route offers clarity and structure. Once the gavel falls, the sale becomes legally binding - eliminating the uncertainty of chains, buyer withdrawals, or drawn-out negotiations that are common with private treaty sales.

• Completion usually within 28 days: Contracts are exchanged immediately at the auction, with completion set for 28 days later (or whatever period is set out in the auction pack). This certainty is appealing if you’re working to a tight timeframe or looking to avoid ongoing costs.

While the final sale price at auction can sometimes be lower than through a private sale, the trade-off is speed, certainty, and reduced legal complication. Additionally, competitive bidding in a well-marketed auction can sometimes yield surprisingly strong results, especially if the flat is in a desirable area or has redevelopment potential. Preparing a comprehensive legal pack, including lease details and any estimates for lease extension, can further enhance buyer confidence and interest.

Should I Wait for the Leasehold and Freehold Reform Act 2024?

Potential reforms introduced under the Leasehold and Freehold Reform Act 2024 could bring major benefits for leaseholders:

• Reduce lease extension costs: The legislation aims to simplify and lower the overall cost of extending a lease, potentially by adjusting the way premiums are calculated or capping certain charges. This could make lease extensions more financially accessible to a broader group of flat owners.

• Abolish marriage value: One of the most anticipated changes is the removal of marriage value - the uplift in property value that occurs when a lease is extended and which currently must be shared with the freeholder if the lease is below 80 years. If abolished, leaseholders with shorter leases would no longer face this additional cost, potentially saving them thousands of pounds.

That said, the Act is not yet fully in force, and while it has passed into law, much of the detail - including how and when the reforms will be implemented - remains subject to further regulation and clarification. The timeline for these changes to take effect is still uncertain and may be phased in gradually.

If you're considering selling your flat soon, waiting for the reforms could be risky. Lease terms continue to tick down, and market value can decline further the longer you wait. Unless you’re in a position to wait several months (or longer) and are confident that the reforms will apply to your situation, it may be better to act based on current law rather than gamble on future legislation.

Legal Considerations and Leasehold Advice

Selling a short lease flat involves more than a standard property sale - it requires specialised legal know-how, careful planning, and awareness of your rights and obligations:

1. Engage a specialist solicitor
   Choose a solicitor experienced in leasehold conveyancing, lease extensions, enfranchisement, and tribunal proceedings. They’ll ensure all statutory notices (like Section 42 for a lease extension) are correctly drafted and that the new lease or sale contract is legally watertight.

2. Know your legal rights
   Under the Leasehold Reform, Housing and Urban Development Act 1993, you may have statutory rights to extend your lease by 90 years or to participate in collective enfranchisement (if other leaseholders in your block do the same). Recent reforms - such as the Leasehold Reform (Ground Rent) Act 2022 and the Leasehold and Freehold Reform Act 2024 - may further strengthen your position.

3. Check the freeholder’s compliance
   Investigate whether the freeholder has fulfilled their obligations: have proper service charge procedures been followed? Are major works notices correctly issued? Any signs of non‑compliance might deter buyers - or offer you leverage in negotiations.

4. Use the Leasehold Advisory Service
   This independent body offers free and low-cost, legally informed advice to leaseholders. They can assist with deciding on extension routes, identifying applicable laws, and understanding deadlines and forms.

5. Plan for statutory notices and timelines
   The statutory extension route requires serving a Section 42 notice and adhering to precise timescales. Missing one deadline can invalidate the process and incur additional costs. It’s essential to map out all critical dates with your solicitor in advance.

6. Budget for legal and professional costs
   Aside from your own solicitor and valuation costs, you may also be liable for the freeholder’s reasonable legal and surveyor fees. If disputes arise, Tribunal fees may be required.

These steps will help ensure you are legally compliant, strategically protected, and fully prepared for the complexities of selling a short lease flat. Always involve professionals early in the process and seek guidance from reliable sources like the Leasehold Advisory Service.

FAQ;s: Selling a Short Lease Flat

1. What is considered a short lease flat?
A flat is generally considered to have a short lease when there are fewer than 80 years remaining. Below this threshold, lease extension costs increase significantly and mortgage options become limited.

2. Can I sell my flat without extending the lease?
Yes, but expect a lower sale price and a smaller pool of potential buyers, mainly cash investors. Mortgage restrictions often prevent conventional buyers from proceeding.

3. How much does a short lease reduce the value of my flat?
The discount depends on the lease length. Typically, properties under 80 years see a 5–15% drop; under 70 years, up to 30% or more. Location, ground rent, and freeholder cooperation also affect value.

4. Should I extend the lease before selling?
Extending the lease can increase value and widen buyer interest but involves upfront costs and time. If you're in a hurry or funds are limited, selling as-is might be more practical.

5. How long does it take to sell a flat with a short lease?
Short lease sales can take longer due to legal complexities, mortgage issues, and buyer caution. Even with a cash buyer, the process typically takes 8–12 weeks or more.

6. Who buys short lease flats?
Mostly cash buyers, investors, and developers. These buyers understand leasehold law and are often willing to take on the lease extension process themselves.

7. Can I sell a short lease flat through a high street estate agent?
Yes, but many agents lack experience with short lease sales. It’s best to choose a specialist or one familiar with leasehold transactions and investor networks.

8. Is auction a good option for selling a short lease flat?
Yes. Auctions attract informed cash buyers and offer a fast, binding sale. However, the final price may be lower than a traditional sale, depending on market interest.

9. Will the Leasehold Reform Act 2024 affect how I sell?
Possibly. The reforms may reduce lease extension costs and remove marriage value, but full implementation is pending. Waiting may help some sellers but also carries risks of further depreciation.

10. Where can I get help understanding my lease?
Start with HM Land Registry for your title documents. Then speak to a leasehold solicitor or contact the Leasehold Advisory Service (LEASE) for free expert advice.