How to Sell Property with a Lease: A Step-by-Step Guide

Selling a property is stressful enough—but when it’s leasehold, there are extra hoops to jump through. Whether you’re selling a flat, maisonette, or leasehold house, you’ll need to prepare your lease documents, deal with buyers’ solicitors, and ensure your Land Registry lease plan is correct.

Get it wrong? Expect delays, extra costs, or even a failed sale.

To help you navigate the process, here’s a step-by-step guide to selling a leasehold property in the UK.

Step 1: Check Your Lease Terms

Before you even list your property, check your lease agreement—buyers (and mortgage lenders) will want to know all the key details.

📜 What to look for:
✔️ Lease length – If your lease has less than 80 years left, you may need to extend it before selling.
✔️ Ground rent & service charges – Buyers will ask for this information upfront.
✔️ Any restrictions – Some leases prohibit subletting, pets, or certain renovations.
✔️ Management company details – If your property is part of a block of flats, buyers need to know who manages it.

💡 Why this matters: A lease with less than 80 years can make it harder to sell, as mortgage lenders often refuse to lend on short leases.

Step 2: Get Your Leasehold Information Pack

Buyers will need detailed leasehold information to proceed with the purchase. This comes from your freeholder or management company.

📌 What’s included in the Leasehold Information Pack?
✅ A copy of the lease
✅ Details of ground rent & service charges
✅ Building insurance information
✅ Accounts & maintenance history
✅ Any planned major works or service charge increases

💰 Cost: Freeholders usually charge between £200-£500 for this pack.

🚨 Pro tip: Request this ASAP—waiting too long can delay your sale.

Step 3: Ensure Your Lease Plan is Land Registry-Compliant

Your Lease Plan shows exactly what part of the property is included in the lease, plus any shared spaces.

🔎 What your Lease Plan must include:
✔️ The demised premises (i.e., the leased area) clearly outlined in red.
✔️ Any shared areas (e.g., hallways, gardens, parking) correctly marked.
✔️ A north arrow and drawn to the correct scale (1:100 or 1:1250).

🚨 Common issue: If your lease is old or missing a compliant lease plan, you may need a new one drawn up before selling.

Step 4: Find a Buyer & Negotiate the Sale

Once you have all the key documents in place, it’s time to list the property and find a buyer.

📢 Marketing a Leasehold Property:
✔️ Be upfront about lease length & costs – buyers will ask!
✔️ If the lease is short, consider extending it before selling (it can increase your property’s value).
✔️ Highlight the benefits – e.g., lower maintenance, managed buildings, security.

💡 Did you know? Properties with leases under 80 years can lose value over time—so acting early can save you money.

Step 5: Handle the Buyer’s Solicitor Enquiries

Once you have a buyer, their solicitor will ask a LOT of questions about the lease.

📌 Common buyer solicitor enquiries include:
✅ How much ground rent and service charges are payable?
✅ Are there any disputes with the freeholder or management company?
✅ What are the terms of the lease (e.g., subletting, alterations, restrictions)?
✅ Are there any planned major works that could increase costs?

🚨 Delays happen when:

• Lease paperwork is missing or incomplete.
• Service charges are unclear or disputed.
• The lease plan isn’t Land Registry compliant.

💡 Pro tip: Keep all lease documents ready to speed up the process!

Step 6: Deal with the Freeholder (If Needed)

If your lease requires freeholder approval before selling, you’ll need to contact them early.

✔️ Some leases have a “right of first refusal”, meaning the freeholder gets the first option to buy the property.
✔️ If you’re extending the lease, you’ll need to negotiate with the freeholder before selling.
✔️ Some freeholders charge a “notice of transfer” or “deed of covenant” fee—this can cost £50-£500.

💡 Tip: Check your lease to see if freeholder consent is required for the sale.

Step 7: Exchange Contracts & Complete the Sale

Once the buyer’s solicitor is satisfied, you can exchange contracts and set a completion date.

📌 What happens at exchange?
✅ The buyer pays a deposit (usually 10%).
✅ The sale becomes legally binding.
✅ A completion date is agreed—usually within 2-4 weeks.

📌 What happens at completion?
✅ The buyer pays the full amount, and the property officially transfers.
✅ The solicitor registers the sale with HM Land Registry.
✅ If you have a mortgage, your solicitor repays the lender.

🚀 Congratulations—you’ve sold your leasehold property!

Common Issues When Selling a Leasehold Property (And How to Avoid Them)

🚨 Issue 1: Short Lease (Under 80 Years)
❌ Buyers may struggle to get a mortgage.
✔️ Solution: Extend the lease before selling or negotiate a lease extension deal with the buyer.

🚨 Issue 2: High Service Charges or Ground Rent
❌ Buyers may pull out if charges are excessive.
✔️ Solution: Be transparent about costs upfront and justify any high charges (e.g., luxury amenities, recent renovations).

🚨 Issue 3: Missing Lease Plan or Non-Compliant Plan
❌ The sale may be delayed or rejected.
✔️ Solution: Get a Land Registry-compliant lease plan drawn up by a professional.

🚨 Issue 4: Freeholder Delays
❌ Some freeholders are slow in providing information.
✔️ Solution: Request documents early and chase up regularly.

Final Thoughts: Plan Ahead for a Smooth Sale

Selling a leasehold property is more complicated than selling freehold, but with the right preparation, you can avoid delays and legal headaches.

✅ Check your lease terms early (length, charges, restrictions).
✅ Get your Leasehold Information Pack ASAP.
✅ Ensure your lease plan is Land Registry compliant.
✅ Be transparent with buyers about lease costs.
✅ Communicate with the freeholder early if approvals are needed.

By following these steps, you’ll make the process smoother, quicker, and stress-free.

💬 Thinking about selling your leasehold property? Have a question? Drop it in the comments—we’re happy to help! 🏡📜💷