Selling a Leasehold Property: What You Need to Know

What Makes Leasehold Sales Different

When you sell a leasehold property, your buyer's solicitor needs to review not just the title deeds but also the lease itself and the documents governing how the building is managed. This includes service charge accounts, insurance documents, building safety information, and confirmation of any outstanding charges or planned major works.

These documents are assembled into what is called a management information pack (or leasehold information pack) and must be obtained from the freeholder or managing agent. The pack cannot be compiled by your solicitor — it must come from the party managing the building, and they charge for it.

The Management Information Pack

The management information pack typically contains: three years of service charge accounts, the current buildings insurance policy, any Section 20 notices for major works, a statement of ground rent and service charge arrears (if any), fire risk assessment, and confirmation of any ongoing disputes.

Packs cost £100–£500 and can take 4–10 weeks to arrive — sometimes longer if the managing agent is slow or unresponsive. This is one of the most common causes of delay in leasehold sales. Request the pack from the managing agent on the day you accept an offer, or even earlier if possible.

Lease Length Considerations

If your lease has fewer than 85 years remaining, buyers' mortgage lenders may be reluctant to lend. Under 80 years, the cost to extend rises sharply because of the 'marriage value' element added to the statutory extension premium. Under 70 years, many mainstream lenders will not lend at all.

If your lease is approaching these thresholds, you have two options: extend the lease before you sell (which makes the property more marketable but costs money and takes time), or negotiate the cost of extension into the sale price and instruct a specialist leasehold solicitor to manage the process.

• ▸Extending before sale: Adds to the asking price by more than the extension cost in most cases. Requires at least 2 years' ownership before statutory right applies
• ▸Selling with a short lease: Limits your buyer pool to cash buyers or those with specialist lenders. Usually results in a reduced sale price
• ▸Simultaneous extension and sale: The buyer can take over the lease extension right during conveyancing — your solicitor can advise on this approach

Ground Rent and Service Charge Arrears

The management pack will disclose any arrears on ground rent or service charges. If you are in arrears, these must be settled before or at completion — they cannot be passed to the buyer. The freeholder's solicitor will require a completion statement confirming that all sums are paid.

In some cases, freeholders or managing agents will also charge a notice of transfer fee (notifying them that ownership has changed) and a notice of charge fee (if the buyer has a mortgage). These fees — typically £50–£200 each — are usually borne by the buyer, but check the lease to confirm.

Building Safety Requirements

For flats in buildings over 11 metres (approximately 4 storeys), buyers' lenders now routinely require an EWS1 form confirming the cladding and external wall system has been assessed. If your building has not been assessed or is awaiting remediation works, this can make your property difficult or impossible to sell to mortgaged buyers.

Check with your managing agent or residents' management company what the EWS1 status of your building is before listing. If remediation is ongoing, buyers need to understand the timeline and their likely service charge exposure. Transparency here is essential — a buyer who discovers this mid-conveyancing is far more likely to pull out than one who knew upfront.

Frequently Asked Questions

How long does it take to sell a leasehold flat compared to a freehold? Leasehold sales typically take 2–4 weeks longer than equivalent freehold transactions because of the management information pack and the additional enquiries it generates. In buildings with complex fire safety situations or ongoing major works disputes, the delay can be considerably longer.

Do I have to disclose service charge increases or planned major works? Yes — you must answer the property information questions on the TA6 form honestly, and the management pack will disclose known planned works. Concealing known planned major works that will result in a significant service charge bill is a form of misrepresentation.

What is a licence to assign and do I need one? Some older leases require the freeholder's formal consent before the property can be sold (assigned). This is called a licence to assign and can cost £200–£1,000. Check your lease — most modern leases do not require this, but older leases sometimes do.

Can I sell a leasehold property if there are ongoing disputes with the freeholder? Yes, but you must disclose them. Disputes over service charges, major works costs, or freeholder behaviour must be declared on the TA6 form. Buyers may factor the dispute into their offer or withdraw if the situation appears unresolvable.

What happens to my ground rent when I sell? Ground rent obligations transfer to the buyer. The management pack will confirm the current ground rent and any review provisions. Under the Leasehold Reform (Ground Rent) Act 2022, new leases must charge a peppercorn ground rent — but this does not affect existing leases with historic review clauses.

Can I sell a share of freehold property the same way? Broadly yes, but there are additional considerations. You will need to transfer your share in the freehold company as well as the lease itself. Your solicitor will advise on the mechanics, which vary depending on how the freehold is structured.

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