{"id":275,"date":"2026-09-09T02:58:38","date_gmt":"2026-09-09T02:58:38","guid":{"rendered":"https:\/\/www.yopa.co.uk\/homeowners-hub\/?p=275"},"modified":"2026-09-09T13:42:19","modified_gmt":"2026-09-09T13:42:19","slug":"guide-selling-leasehold-flat","status":"publish","type":"post","link":"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/guide-selling-leasehold-flat\/","title":{"rendered":"The simple guide to selling a leasehold property"},"content":{"rendered":"\n

If\nyou own a leasehold property, you may be glad to know that selling with a\nleasehold is simpler than it looks. All it takes is a little planning and a few\nextra documents.<\/p>\n\n\n\n

This\nguide will help you understand your lease, how it affects the sale of your\nhome, and how to get your property on the market for the best price possible if\nyou have a short lease.<\/p>\n\n\n\n

What\ndoes it mean to own the leasehold?<\/strong><\/h3>\n\n\n\n

If\nyou own a flat, you probably own the leasehold<\/a> instead of the freehold<\/a>. Most flats in the UK\ncome with leaseholds, as do shared ownership<\/a> properties. It\u2019s\nentirely normal, so it shouldn\u2019t put potential buyers off.<\/p>\n\n\n\n

Owning\nthe leasehold means that, while the flat (or other property) itself is yours,\nthe ground it stands on and the communal areas of the building belong to the\nfreeholder. The freeholder is the person who owns the land.<\/p>\n\n\n\n

Leaseholders\npay ground rent and a service charge to the freeholder, often annually. The\nfreeholder uses this money to maintain all the communal areas, like shared\ngardens and the building as a whole.<\/p>\n\n\n\n

If you\u2019re a leaseholder, your lease \u2013 your right to stay on the freehold, and your obligation to pay towards upkeep \u2013 doesn\u2019t last forever. When the lease is finished, ownership of the property technically transfers back to the freeholder. This rarely happens, though, because you can keep extending the lease (which you have a statutory right<\/a> to do).<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Buying the freehold<\/strong><\/h3>\n\n\n\n

If you have a short lease, another option is to club together with other leaseholders and buy the freehold<\/a>.<\/p>\n\n\n\n

Buyers are generally more attracted to flats that come with a share of the freehold, as being exempt from ground rent and service charges is a big benefit. As the freeholder, you\u2019re also in control of maintenance and upkeep, so you can choose the provider who offers the best deal \u2013 unlike external freeholders, whose decision may be based on how much commission they get. If you have a long lease but the opportunity to buy the freehold comes up, it could still be a good investment.<\/p>\n\n\n\n

Joining\nwith other leaseholders to buy the freehold is called \u2018collective\nenfranchisement\u2019.<\/p>\n\n\n\n

How\ndoes collective enfranchisement work?<\/strong><\/h3>\n\n\n\n

Thanks to the Leasehold Reform under the Housing and Urban Development Act 1993<\/a>, leaseholders who meet a certain set of criteria can buy the freehold together. If the freeholder is happy to sell, the leaseholders can buy the freehold from them. If the freeholder doesn\u2019t want to sell, collective enfranchisement<\/a> can offer leaseholders the power to buy it at a fair price anyway.<\/p>\n\n\n\n

Not\neveryone wants the responsibility of owning the freehold and the obligation\nthat comes with it. Luckily, you only need 50% of leaseholders on board for\ncollective enfranchisement.<\/p>\n\n\n\n

You\nwill have some more admin to do, such as ensuring the building is maintained\nproperly and making sure everyone who\u2019s part of the freehold gets their say,\nbut the benefits are also significant. For example, when you buy the freehold,\nyou still have to extend your lease, but it should be free!<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Leasehold reform <\/strong><\/h3>\n\n\n\n

Leasehold reform has continued to evolve in recent years as the government seeks to create a fairer and more transparent system for leaseholders in England and Wales. The Leasehold Reform (Ground Rent) Act 2022<\/a> came into force in June 2022 and effectively restricted ground rents on many new residential long leases to a peppercorn (zero financial value).
<\/p>\n\n\n\n

Further significant changes were introduced through the Leasehold and Freehold Reform Act 2024<\/a>, which aims to make it easier and cheaper for leaseholders to extend their lease or purchase the freehold. Unfortunately, many of the measures included in the Act are currently yet to come into force and require further legislation. This includes a new standard right for leaseholders of houses and flats to extend their lease by 990 years at a peppercorn ground rent and reform of aspects of the valuation process used when calculating the premium for lease extensions or enfranchisement. <\/p>\n\n\n\n

Leasehold reform remains an active area of legislation, with further changes expected. For example, the Starmer Labour government proposed additional reforms as part of a draft Commonhold and Leasehold Reform Bill<\/a>. These proposals include capping ground rents on existing leases at \u00a3250 per year, reducing to a peppercorn after 40 years, and taking further steps to move future developments towards a commonhold system<\/a> of ownership. <\/p>\n\n\n\n

Tips\nfor selling your leasehold property<\/strong><\/h3>\n\n\n\n

Start\ndeciding what to do with your lease as soon as you know you want to sell. Don\u2019t\nwait for it to drop to 80 years or below, as this may slow your sale down.<\/p>\n\n\n\n

Extending your leasehold<\/a> or buying your freehold<\/a> will help you get the best price for your flat. Both have their upsides, so decide which one works for you.<\/p>\n\n\n\n

Make sure you have a good conveyancer or solicitor<\/a>, as extending your lease or buying your freehold can be a complex undertaking, and it\u2019s different for every property. They\u2019ll also help you to understand what you\u2019re paying for and how long it will take before you commit to either option.<\/p>\n\n\n\n

If you\u2019re not sure whether it\u2019s worth extending your lease, ask your local Yopa agent<\/a> for advice. They\u2019re experts in the local market, so they know what buyers are looking for.<\/p>\n\n\n

\n
\n \n
\n
\n \"\" <\/div>\n
\n
\n Instant online valuation<\/span> <\/div>\n
\n

Get a rough estimate of your home's value now.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n

\n \n
\n
\n \"\" <\/div>\n
\n
\n Face-to-face valuation<\/span> <\/div>\n
\n

Book an appointment with your local Yopa agent.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

If you own a leasehold property, you may be glad to know that selling with a leasehold is simpler than it looks. All it takes is a little planning and a few extra documents. 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