Leasehold
Buying or selling leasehold? Here's what's different.
Leasehold conveyancing follows the same basic stages as freehold, but with extra checks: lease length, ground rent, service charges, and a management pack from the freeholder. Here's what actually changes, and why.
Get your leasehold quote →The Basics
Leasehold and freehold, in plain English.
Buy a freehold property and you own the building and the land it stands on outright, for as long as you like. Buy a leasehold property, most commonly a flat, and you own the right to live there for a fixed number of years under a lease granted by the freeholder, who continues to own the building itself. Your solicitor's job is to check exactly what that lease says: how long is left on it, what you're allowed to do with the property, what you're required to pay the freeholder, and what happens if either side breaks the terms.
None of that exists on a freehold purchase, which is why leasehold transactions involve extra reading, extra correspondence with a third party who isn't on either side of your deal, and, in turn, a little more time and a little more cost.
Lease Length
Why the number of years left actually matters.
A new lease is typically granted for 99, 125 or even 999 years, but every year that passes shortens what's left, and a shorter lease is worth less. Once a lease drops much below roughly 80 years remaining, two things tend to happen at once: extending it becomes markedly more expensive because of how "marriage value" is calculated under leasehold reform law, and mainstream mortgage lenders become reluctant to lend against it at all, since their security is weakening with every year that passes.
If you're selling a flat with a lease approaching that mark, or buying one, it's worth raising the lease length with your conveyancer at the outset rather than after a mortgage valuation comes back with a condition attached. Extending the lease before completion is sometimes the more practical route, and we'll flag it early rather than let it surface as a late surprise.
Ground Rent
What we check, and why escalating clauses matter.
Ground rent is a sum payable to the freeholder, usually annually, simply for holding the lease. On its own a modest ground rent isn't unusual. What we look at closely is how it's structured: a fixed, low amount is straightforward, but a clause that doubles the rent every ten or twenty years can compound into a significant sum well within the term of the lease, and some lenders will decline to mortgage a property on those terms at all. We read the ground rent clause on every leasehold matter and flag anything that looks likely to cause a problem for you or a future buyer.
Service Charges
Ongoing costs for the building, not just the flat.
Service charges cover the freeholder's or managing agent's costs of insuring, maintaining and repairing the building and any shared areas: the roof, the lift, the communal hallway, buildings insurance. We check the recent service charge accounts, ask whether any major works are planned or already under way, and confirm whether there's a reserve fund set aside for them, so you know what you're taking on before you commit rather than after the invoice for a new roof arrives.
The Common Delay
The management pack, and why it's worth requesting early.
Before exchange, your solicitor requests a management information pack from the freeholder or their managing agent, covering service charge accounts, buildings insurance, ground rent, and any planned works. Unlike the parties to your sale, freeholders and agents aren't bound by your timetable, and packs can take several weeks to come back. Late or slow-arriving management packs are one of the most common reasons a leasehold transaction overruns, so we request it as one of the first steps, not something left until you're ready to exchange.
On Completion
Notice-of-transfer and notice-of-charge fees.
When a leasehold property is sold, the freeholder or managing agent typically charges a notice-of-transfer fee to update their records with the new owner's details, and, if you're buying with a mortgage, a notice-of-charge fee to register your lender's interest. These are set by the freeholder rather than by us, vary from one building to the next, and are usually paid as a disbursement on completion.
We identify these fees from the management pack as soon as it arrives and include them in your running costs, so completion day doesn't bring a fee you haven't seen before.
What It Costs
Why leasehold costs a little more, itemised.
Our leasehold fee supplement
Leasehold matters carry a fixed £200 supplement on top of our standard legal fee, covering the extra time spent reviewing the lease, chasing the management pack, and dealing with the freeholder or their managing agent. It's shown as its own line in your quote, not folded into a larger number.
HM Land Registry's own higher fee
HM Land Registry charges more to register a leasehold title than a freehold one at every property value band. For example, on a property valued up to £200,000 the registration fee is £100 for freehold against £230 for leasehold; up to £500,000 it's £150 against £330. This is a government fee, not ours, and it's passed on at cost.
Both figures are shown separately in your itemised quote below, alongside any notice-of-transfer or notice-of-charge fees identified once your management pack arrives.
Your Quote
Get your leasehold quote,
fully itemised.
Select "Leasehold" as your tenure for a complete, itemised quote: legal fees, disbursements and government fees, each shown separately.
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Your Quote
Professional fees, incl. VAT
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Disbursements
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Government fees
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Total: — Disbursements and government fees are estimates and will be finalised before exchange; for leasehold properties the landlord's own Lessor's Registration Fee is not included, as it is set at the landlord's discretion.
Important information
This quote is based on the information you have given us. If something material changes or additional information comes to light during the transaction, we will tell you and agree any change with you before it applies. To comply with Money Laundering Regulations we verify the identity of all clients, including through an online ID verification service.
Almost done
Where should we send it?
A little, yes. Our fixed fee includes a £200 leasehold supplement to cover the extra paperwork, and HM Land Registry itself charges a higher registration fee for leasehold titles than for freehold ones at every property value band. Both are shown separately in your itemised quote, not buried in a single figure.
There's no single legal cut-off, but once a lease drops much below 80 years remaining, marriage value calculations under the Leasehold Reform Act typically make extending it noticeably more expensive, and mainstream mortgage lenders start declining or restricting loans against the property. If your lease is close to that mark, extending it before or alongside your sale is usually worth discussing early.
It's the information bundle your solicitor requests from the freeholder or managing agent: service charge accounts, buildings insurance details, any planned major works, and confirmation of ground rent. Freeholders and agents are not bound by the same deadlines as the parties to the sale, and packs can take several weeks to arrive — it is one of the most common causes of delay in a leasehold transaction, so we request it as early as possible.
When a leasehold property changes hands or a new mortgage is registered against it, the freeholder or managing agent usually charges a notice-of-transfer fee and, where relevant, a notice-of-charge fee, for updating their own records. These are set by the freeholder rather than by us, and are usually settled on completion alongside your other disbursements.
Read Next
More on leasehold conveyancing.
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