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Content Written By: Raphael Kaye - Last Updated: 04/07/2025

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?

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: 

Reasons for the depreciation of leasehold properties
The lease runs downProspective buyers can find it difficult to secure mortgages on properties with shorter leases, so they’ll likely avoid the homes and flats that have fewer than 80 years to run
The expense of extensionIf a lease extension is required, it’s more hassle and greater cost for the buyer, so they’ll naturally look for properties with longer leases
A lack of flexibilityIf there’s no way for tenants to have pets at properties, for example, or the new buyer can’t sublet any part of the property, the lack of flexibility can negatively affect the value
An increase in fees and chargesThe terms of the lease can be undesirable if they contain escalating ground rent fees, for instance, or high service charges—such terms can make lease deals less appealing

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:

How to retain the value of leasehold properties
Extend the lease early onApply to extend the lease before you sell so your prospective buyer can be comfortable knowing they’re making a long-term investment
Maintain transparencyBe open and honest about ground rent, service charges and any other costs the new owner will be expected to pay—nobody wants a surprise bill
Keep up with maintenanceLooking after a property obviously goes a long way, as it does with any property, but making sure you manage any disputes or problems effectively in flats with tenants will help here, too

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?

Sell your leasehold property quickly to us!

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

ProsCons
Lower purchase prices, especially for those properties with short leases, are very attractive to buyersYou’ll get less back for your property if it has a short lease—you might even struggle to sell it entirely on the open market
Extended leases can have a positive impact on the property’s value and make it easier to sellExtending the lease of a property can be expensive, so it’s important to weigh up your long-term options
Long leases and reasonable costs are appealing to a wider pool of buyersCosts like ground rent and service charges over the long term can put some buyers off
Leasehold properties like new builds and flats are in high demand in densely populated areasLeasehold properties can take longer to sell, especially if there are terms and conditions like pet allowances and subletting restrictions

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:

“...a loophole which means the act goes far beyond the intended reforms to valuation and that undermines the integrity of the amended scheme.

“[There are] specific but serious flaws which would prevent certain provisions from operating as intended and that need to be rectified via primary legislation.”

- Matthew Pennycook, Housing Minister

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

“The leasehold reforms planned for 2025 mark a significant shift in the landscape of property ownership in the UK.

“Leaseholders will see increased rights and easier pathways to enfranchisement and lease extensions, which will ultimately give them more control over their properties.”

- Ashley Nkemakolam, trainee solicitor at Sherrards
Don't waste time reading a long list...

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: 

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

A quality service, no matter what
Steven Williams shared on Trustpilot
★★★★★

Polite and professional staff

I didn't sell my flat with the property buying company due to the low lease problems with the freehold. But Marc kept in constant communication via telephone email and text. Pleasure

Date of experience: June 5th, 2020

A cash buyer you can trust:
Customer wrote on Trustpilot
★★★★★

You can Trust this company 100%

The Property Buying company changed my life...my property had a short lease and I needed a cash buyer pretty quick as I had found a new property I wanted to buy...they gave me a fair price for my property and were so supportive every step of the way with the sale......you can trust this company completely ... they are so genuine in every area, caring & compassionate to all your requirements for the process...there are no fees to pay...I found my whole experience with them,stress free, quick and efficient ...they were always at the end of the phone whenever I needed any advice etc.... they get a 5star from me! 👍🌟🌟🌟🌟🌟

Date of experience: November 4th, 2021

Offering advice and support
John A Walmsley said on Trustpilot
★★★★★

Great advice from Charlotte and gave me…

Great advice from Charlotte and gave me solutions around the lease and selling my property.

100 % recommend them.

Date of experience: September 8th, 2022

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.

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Raphael Kaye

My name is Raphael Kaye, I’m the Property Consultant Team Manager at The Property Buying Company, and my main role is to manage the consultants and be here to help you with any property sale needs that you may have. I have a lot of experience in a variety of property sale situations, over the years, I've seen it all!

Find out more about Raphael Kaye

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