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Selling a Flat With a Short Lease

Understanding Your Options When a Lease Is Running Low

If your flat has a short lease, selling it on the open market can sometimes be challenging. Many buyers struggle to obtain a mortgage on properties with limited lease terms, which can reduce the number of potential purchasers.

At 10 Square, we speak with many flat owners who are unsure how a short lease may affect their ability to sell. This page explains how short leases work in the UK, what options are available, and the typical steps involved if you decide to sell.

Free Valuation - Free Legals - We Are With You Every Step Of the Way

What Is Considered a “Short Lease” in the UK?

In England and Wales, a leasehold property is owned for a fixed period of time. As the lease term reduces, the property can become more difficult to mortgage and therefore harder to sell.

 

Although there is no strict legal definition of a “short lease”, the following thresholds are commonly used in the property market:

 

80 years remaining
Once a lease drops below 80 years, the cost of extending it usually increases because marriage value becomes payable to the freeholder.

70–75 years remaining
Many mortgage lenders begin restricting lending.

60 years or less remaining
Mortgage availability becomes significantly limited, reducing the pool of buyers.

Because of this, flats with shorter leases are often purchased by cash buyers or investors.

Why Short Leases Affect

Property Sales

The main reason short leases create challenges is mortgage lending criteria.

Most lenders require that a lease has:

  • A minimum number of years remaining at the start of the mortgage

  • Enough years remaining beyond the mortgage term

If these conditions are not met, buyers relying on a mortgage may be unable to proceed.

This can result in:

  • Fewer interested buyers

  • Longer time on the market

  • Negotiations over price

  • Requests to extend the lease before completion

Options Available to
Flat Owners

1. Extend the Lease Before Selling

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Leaseholders who have owned their property for at least two years usually have a statutory right to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993.

A statutory lease extension typically provides:

  • An additional 90 years added to the lease

  • Ground rent reduced to a peppercorn

However, the process involves legal and valuation costs and can take several months.

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2. Start a Lease Extension and Assign It to the Buyer

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In some cases, sellers begin the statutory lease extension process and then transfer the benefit of the claim to the buyer.

This can make the property more attractive to buyers because they do not have to wait two years to extend the lease themselves.

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3. Sell the Property With the Existing Lease

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Some sellers choose to sell the flat with the current lease term, particularly if they want a quicker and simpler transaction.

In these cases, the buyer will typically factor the cost of the lease extension into their offer.

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Typical Timescales

Timescales can vary depending on whether a lease extension is involved.

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Sale without lease extension

  • Buyer found: 2–12 weeks

  • Conveyancing: 8–12 weeks
     

Statutory lease extension

  • Often 4–12 months depending on negotiations with the freeholder.

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Because of this, some sellers choose a direct sale where timing is more predictable.

Typical Steps When Selling a Flat With a Short Lease

Although every situation differs, the process generally involves the following steps:

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Step 1: Confirm Lease Length

Your solicitor or managing agent can confirm the exact number of years remaining on the lease.

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Step 2: Obtain a Property Valuation

Understanding the property's current value with its lease length helps inform your options.

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Step 3: Consider Lease Extension Options

You may discuss with your solicitor whether extending the lease before selling is beneficial.

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Step 4: Market or Agree a Sale

You can then proceed with marketing the property or agreeing a private sale.

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Step 5: Conveyancing Process

Once a buyer is found, solicitors handle the legal transfer of ownership and any leasehold documentation.

What Can Delay or Prevent a Sale?

Several factors can complicate the sale of a short-lease flat.

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Mortgage Restrictions

Buyers relying on mortgage finance may be unable to proceed if the lease is too short.

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Freeholder Delays

Lease extensions require negotiations with the freeholder, which can take time.

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Service Charge or Ground Rent Issues

Outstanding charges or unusual ground rent clauses may raise concerns for buyers or lenders.

Missing Lease Documents

Leasehold sales require management information packs, which can take time to obtain.

How We Help Flat Owners With Short Leases

At 10 Square Homebuyers, we understand that leasehold issues can make selling feel complicated and uncertain.

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We provide a straightforward alternative for owners who prefer a simple and predictable sale.

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When speaking with us, you can expect:

  • A confidential conversation about your situation

  • A no-obligation property assessment

  • The ability to sell your flat with its current lease

  • No requirement to extend the lease first

  • Flexible completion timelines

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Our aim is to provide clarity and certainty when the traditional market may be more complicated.

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