Selling a leasehold property in the UK is much like selling a freehold, but with a few added steps and legal nuances that can impact timing, cost and buyer interest. In this guide, we explain what a leasehold is, how selling it differs from a freehold sale, and the key things you need to do to ensure a smooth transaction.
What is a leasehold property?
A leasehold property means you own the property, but not the land it sits on. Instead, you lease it from the freeholder (also known as the landlord) for a set period, commonly 99, 125 or even 999 years.
Most UK flats are leasehold, though some houses are too. As a leaseholder, you are typically responsible for paying ground rent, service charges, and complying with any covenants or restrictions set out in the lease.
What is the difference between selling a leasehold and a freehold property?
Selling a leasehold involves more paperwork and coordination, as buyers will want full disclosure on several key details. These include the remaining lease term, the current ground rent and service charges, any upcoming maintenance work planned by the freeholder or managing agent, and any restrictions on how the property can be used, such as limits on alterations or subletting.
In contrast, freehold sales are more straightforward, as you own the building and the land outright, with no landlord to deal with.
Related: What is a leasehold property? Leasehold vs freehold
Is it hard to sell a leasehold property?
Not necessarily. Leasehold homes are sold every day. However, issues such as short leases, typically under 80 years, high ground rents, or restrictive covenants can deter buyers or make a property unmortgageable.
That said, a well-prepared seller with all the right documents and legal advice can successfully sell their leasehold home, often at a competitive price.
Selling a leasehold property: The process
House valuation
Start by finding out how much your home is worth. Use online valuation tools or ask three local estate agents to visit and provide appraisals. A property with a long lease in good condition will attract more interest and better offers.
Know the length of your lease
If your lease is below 90 years, it is worth extending it before selling or at least starting the process. Properties with fewer than 80 years left are harder to mortgage, which limits your buyer pool.
Previously, under UK law, leaseholders had to own the property for at least two years before they could extend the lease, typically adding 90 years for flats or 50 years for houses. However, recent changes have abolished this two-year ownership rule.
Leaseholders can now begin the lease extension process immediately after purchasing a leasehold property, giving new owners greater flexibility to secure their property’s value without delay.
Make sure you have all the necessary documents
Your buyer will need detailed information, so get your paperwork in order. This includes:
- A copy of the lease
- Share Certificate (if applicable)
- Leasehold Information Form (TA7)
- Leasehold Management Pack (LPE1 form)
- Leasehold Information Pack (TA7 form)
- Ground rent and service charge statements
- Building insurance details
- Seller’s Property Information Form (TA6)
- Fittings and Contents Form (TA10)
- Energy Performance Certificate (EPC)
- Building regulations and planning permissions
- Consent letters or compliance certificates for alterations
- Warranties and guarantees
- Any asbestos or fire safety reports
- External Wall Fire Review (EWS1) Form (if applicable)
Speak to a conveyancer
Appoint a solicitor or conveyancer experienced in leasehold sales. They will guide you through the process, handle legal documents, and request the leasehold management pack from the freeholder or management company.
Speak to solicitors and choose an estate agent
Select a reputable estate agent with experience in leasehold sales. They will help you price the property accurately, market it effectively, and liaise with buyers on your behalf.
An experienced agent will understand how to present the leasehold details clearly and positively, addressing common buyer concerns around lease length, service charges and ground rent. They can also advise you on the best time to sell, manage viewings efficiently, and help vet potential buyers to ensure they are financially qualified.
By acting as the main point of contact between all parties, a good estate agent can keep communication flowing and help prevent delays that might arise during the conveyancing process.
Prepare for viewings and property photos
First impressions count. Tidy up, fix minor issues, and consider giving your home a fresh coat of paint. Do not forget the communal areas, as buyers will notice. Open curtains and blinds to maximise natural light, and ensure surfaces and floors are clean for a polished finish. If possible, remove personal items to help viewers visualise the space as their own.
List your home
Once your agent has everything in place, your property can go live on portals like Rightmove, Zoopla and the agent’s own website.
Negotiate and accept an offer
You might receive offers quickly or wait a while. Consider price, chain position, and mortgage readiness. Once you accept, your solicitor will issue the draft contract and work with the buyer’s solicitor to respond to any lease-related enquiries.
Exchange contracts and completion day
Once both sides are satisfied and the buyer’s deposit is received, contracts are exchanged and a completion date is agreed. On that day, the buyer’s solicitor sends the purchase funds, you hand over the keys, and the property legally changes hands.
Thinking about selling your leasehold property?
At Northwood, we understand the unique challenges and opportunities involved in selling leasehold homes. Whether your flat has a long lease or you’re concerned about ground rent or service charges, our experienced local experts are here to guide you every step of the way. From valuations to marketing and negotiations, we’ll help you maximise your sale price and minimise hassle.
Get in touch with your local Northwood branch today to book a free valuation and discover how we can make your move a success.
Further reading:
The costs of selling your home in the UK
