Are Leasehold Properties Hard To Sell?

Leasehold properties can be appealing on account of their price, but do the perceived discounts come at a cost to an owner?

According to government figures, there were over 4.8 million leasehold dwellings in the UK in 2023/24, which made up for 19% of all housing—72% flats and 28% houses. This means there are plenty of people going through the same dilemmas as you right now…

Let’s take a look at all things leasehold property, including the pros and cons as well as the new piece of legislation in 2025, to help you decide what to do about your leasehold conundrum…

Table of Contents

• What is a leasehold property?

• What are the factors that affect the sales of leasehold properties?

• The pros and cons of owning (and selling) a leasehold property

• What is the best way to sell a leasehold property quickly?

What is a leasehold property?

Before we get started, let’s get into the definition: Living in a leasehold property means you own the property, but not the land that it’s on—the land itself belongs to what’s known as a ‘freeholder’. The likes of new builds and flats are commonly registered as leasehold properties.

You typically get a lease agreement from the freeholder for a set time period, which can be up to 999 years. Once it expires, the freeholder regains ownership of the property, even if you've paid off your mortgage.

Leaseholders are bound by a contract that outlines the responsibilities and fees that come with the property, including ground rent, service charges, maintenance costs and a share of building insurance. Failing to meet the lease terms can result in losing the right to live in the property.

What are the factors that affect the sales of leasehold properties?

Here, we’ll cover the ups and downs of leasehold valuations before moving onto the pros and cons of selling a leasehold property.

Do leasehold properties lose value?

The question on the lips of everyone interested in a leasehold property is whether or not they depreciate in value over time. The short answer is yes—the shorter a lease on a property gets, the less valuable it becomes. Here’s why: 

Can leasehold properties increase in value?

When it comes to having an effect on sales, there are things that owners of leasehold properties can do to protect their value or at least make their properties more appealing to potential buyers. These include:

Knowing the legal ins and outs of leasehold ownership stands anyone with such a property in good stead—that way, nobody loses out or gets any nasty surprises.

Good to know: Head to the Leasehold Advisory Service for free expert advice on all things leasehold

It’ll typically take longer for a leasehold sale to go through compared to a freehold property, but as long as you maintain an open and honest relationship with the buyer about all aspects of the property, the whole process should go smoothly. Be wary of these factors before you launch into the sales process—it could take a while:

• Paperwork like the Leasehold Management Pack can take four or more weeks to process and collect

• Necessary legal checks of the terms of the lease mean that solicitors can delay the process

• Checking for outstanding payments can take time, too, with prospective buyers having a right to know that they are taking a ‘clean slate’ on in the property

Read more: What Happens When a Leasehold Expires?

The pros and cons of owning (and selling) a leasehold property

Owning and selling your own property comes with a range of considerations when it comes to finding the right buyer, but there is probably more to think about if the property is a leasehold.

Whether you’re thinking of selling a leasehold property and you want to make it as appealing as possible in the market or you’re buying one and you’re worried about its shelf-life, so to speak, here are some of the pros and cons you’ll need to bear in mind:

Selling a leasehold property

Unfortunately, selling a leasehold property isn’t quite as straightforward as a normal property, but it’s not impossible by any means. Keeping on top of aspects like the condition and the lease length will be vitally important to securing a good sale when the time comes.

Good to know: A reform of the regulations surrounding leaseholds is underway in the UK in 2025, including the removal of the two-year restriction on claiming lease extension after purchase—head to the HomeOwners Alliance for more information about the timeline here.

This new act is not without its flaws, according to some ministers, as reported in the Financial Times in November 2024. The fact that it was seemingly rushed through parliament has led many to doubt it’ll be ready for action soon—the Housing Minister pinpointed:

This leaves many owners in limbo over what to do next with their properties, especially those who were already considering selling up.

What is the best way to sell a leasehold property quickly?

If you are going to sell a leasehold property the traditional way, you need to make sure it’s as attractive as possible to buyers who might be interested in the investment. Here’s a quick checklist to help you get prepared for that, but be sure to consult a legal expert on leasehold enfranchisement and management like Blacks before acting on anything: 

• Make sure your lease has at least 80 years left on it

  • Use this Leasehold Extension guide from the Leasehold Advisory Service to navigate the process

  • The Leasehold and Freehold Reform Act 2024 will make it cheaper for some leaseholders to extend their lease or buy their freehold

  • If you have a flat, for instance, you can use this lease extension calculator to work out what it’ll cost you

• Don’t forget about the usual costs of selling your house, such as estate agent fees and conveyancing fees

• Consider whether or not it’s best to buy the freehold to make it easier to sell

  • There are rules that will be affected by the aforementioned reform act—be sure to check out the guide to the changes on the Commons Library here for more information

If the act comes into effect soon, it should, in theory, make it more appealing for buyers of short-lease properties because they won’t have to wait two years after purchase to extend the lease. It remains to be seen how effective that will be, but there is an alternative to the more traditional (and potentially risky) route of selling.

Sell to a cash buyer company

Selling a leasehold might seem like you’re treading on eggshells with every step you take in the market, but one way to secure a sale without the stress is to sell to a no-chain cash buyer like The Property Buying Company.

There are no worries about the lease terms or length with us—we’ll buy any property, so we can take it off your hands quickly (perhaps even within days if you’re ready to move swiftly). Here’s a quick look at how we work: 

To get started, all you need to do is enter your postcode here and we’ll send your  no-obligation cash offer within 24 hours.