10 Things to Check When Buying A Leasehold Property

Buying your first home is exciting — until someone says the word “leasehold” and suddenly you feel like you need a law degree and a crystal ball just to know what you’re signing up for.

If you’re buying a flat (or the odd house in a new build development), chances are it’s leasehold. That means you own the property, but not the land it sits on — and someone (usually a freeholder or managing agent) gets to be your landlord-in-law.

But don’t worry — we’ve created a list of the top 10 things to check before committing to leasehold life:

1. How Long Is the Lease? ⏳

This is a BIGGIE. Lease length is everything. If the lease has less than 90 years, you may face problems with:

• Selling in future

• Getting a mortgage

• The value of the property dropping faster than your enthusiasm on moving day

Aim for 90+ years. If it's below 80, talk to a solicitor about extending — and fast!

2. How Much Does It Cost to Extend the Lease? 💸

If the lease is getting a bit short (below 80 years), you’ll probably want to extend it soon. But here’s the catch: extending a lease can cost thousands, especially the shorter it gets.

• Lease extension under 80 years? You’ll pay something called “marriage value” (which has nothing to do with your relationship status).

• Cost: Anywhere from £5,000 to £30,000+, depending on the property.

Typically mortgage lenders will allow you to remortgage and raise funds, if there is enough equity in the property, to extend a lease. You will have to undergo credit scoring and pass affordability checks as you would with a normal mortgage application.

3. What Are the Service Charges Like? 🧹

Service charges cover things like:

• Cleaning communal areas

• Building insurance

• Repairs and maintenance

• The occasional new roof (surprise!)

Ask for a breakdown of past service charges, and be on the lookout for:

• Big jumps year to year

• Talk of future major works

• Service charge gremlins

Some buildings are well-run. Others are black holes of cash and drama. Mortgage lenders will require the service charge and ground rent figures as part of a mortgage application for a leasehold property, and most often they'll count these as future commitments.

4. Ground Rent: How Much, and Will It Go Bonkers? ⛏️

Ground rent is like the landlord version of a subscription fee for existing. Historically, it’s been around £100–£300 per year, but in some cheeky cases, it can:

• Double every 10 years (yikes)

• Make your flat hard to remortgage or sell

Good news: new rules (thanks, Leasehold Reform!) mean most new leases now have a peppercorn (a.k.a. zero) ground rent. But older ones? Check that fine print!

5. How Much Are Leasehold Checks? 📄

Leasehold properties involve extra legal work, which means extra solicitor fees.

Expect to pay around:

• £300–£500 more for leasehold conveyancing

• Plus any costs for managing agent packs (typically £200–£400)

Because apparently buying a property wasn’t expensive enough already.

6. Are There Any Restrictions in the Lease? 🚫

Fancy subletting? Installing a new kitchen? Getting a dog?

Check the lease first. Common restrictions include:

• No pets (bye-bye Sir Barkington 🐶)

• No short-term lets

• No alterations without permission

• No hanging laundry off the balcony (rude)

Make sure your dream lifestyle doesn’t conflict with lease conditions.

7. Who Is the Freeholder and Managing Agent? 🧐

Find out who owns the freehold and who manages the building. Why? Because some are saints, and some… well, aren’t.

Red flags include:

• Slow responses

• Poor maintenance

• Sky-high charges for tiny jobs (like £150 to change a lightbulb)

Do some digging. Ask other residents if you’re brave. Or Google like a detective.

8. Any Planned Major Works? 🛠️

Imagine you’ve just moved in… and two months later get slapped with a £6,000 bill for “balcony cladding enhancement and communal flower pot upgrades.”

Before you buy, ask about:

• Section 20 notices (these are the formal heads-up for major works)

• Any known upcoming repairs

• Recent big projects

You don’t want your first housewarming gift to be a surprise invoice.

9. What Happens When the Lease Runs Out? 😳

Fun fact: when a lease ends, the property reverts to the freeholder. Yep, they can literally take it back.

This is why extending before it gets too short is vital — and why most lenders won’t touch properties with under 85 years left.

Avoid “lease decay” like you’d avoid expired hummus.

10. Can You Buy the Freehold or Share of It? 🧾

In some cases, especially with flats, you might be able to:

• Buy the freehold (if it’s a house)

• Or get a share of freehold with other flat owners

This can reduce long-term costs and give you more control. Less landlord, more homeowner boss energy. 💁

Final Thoughts: Leasehold Doesn’t Have to Mean Legal Headaches

Buying a leasehold property isn’t a trap — it just means extra homework. As long as you know what to check and have a good solicitor on your side, you can happily move into your new flat without signing away your soul (or your savings).

So, remember:

• Ask questions

• Read the lease

• And don’t be afraid to walk away if things smell fishier than the communal bin store.