Selling a Flat With a Short Lease: Costs, Options and Timescales
Under 80 years left? Here is what marriage value does to your price, what an extension costs, and when selling to a cash buyer makes more sense.
A lease is a wasting asset. Most flats in England and Wales started at 99, 125 or 999 years, and the closer the remaining term gets to 80 years, the faster value drains away — not gradually, but in steps tied to what lenders and the law allow.
The three thresholds that matter
Below 90 years — you should start planning. Extension costs are still modest and you have time.
Below 80 years — marriage value kicks in. The freeholder becomes entitled to half of the increase in value that extending creates. The premium can jump by thousands overnight. Crossing 80 is the single most expensive day in a leaseholder''s life.
Below 70 years — most mainstream lenders decline. Nationwide, Halifax and others want roughly 70 years at purchase and 40 years remaining at the end of the mortgage term. Your buyer pool narrows to cash and specialist lenders.
What an extension actually costs
Using the statutory route you get 90 extra years and ground rent reduced to a peppercorn. Expect to pay:
- Premium to the freeholder — from around £5,000 on a lease in the high 80s to £25,000+ on a lease in the 60s
- Your solicitor — £1,200–£2,000
- Your valuer — £600–£1,200
- Freeholder''s reasonable costs — you pay these too, typically £1,500–£2,500
Total realistic outlay: £9,000–£30,000, and three to twelve months depending on whether the freeholder cooperates or you need a First-tier Tribunal determination.
Leasehold reform: don''t wait for it
The Leasehold and Freehold Reform Act 2024 legislated to abolish marriage value and set a standard 990-year extension, but the valuation provisions require secondary legislation and have faced legal challenge from freeholders. Do not base a sale decision on a reform date. Every month you wait, the lease gets shorter and the premium goes up.
Selling without extending
You have three realistic routes:
- Extend then sell. Highest price, biggest cash outlay, slowest.
- Serve notice and assign it. If you have owned for two years, serve the Section 42 notice, then assign the benefit of that notice to your buyer at completion. The buyer inherits your two-year qualification and completes the extension themselves. This keeps a mortgaged buyer in play and costs you far less up front.
- Sell as-is to a cash buyer. No lender means the lease length is a pricing question, not a dealbreaker. We buy short-lease flats regularly and handle the extension ourselves after completion.
What we take into account
When we price a short-lease flat we look at the remaining term, the ground rent (escalating or doubling ground rents are a separate lending problem), the service charge history, any major works Section 20 notices in the pipeline, and the freeholder''s reputation for cooperating. A flat with 68 years and a passive freeholder is a straightforward purchase. A flat with 62 years, a doubling ground rent and a £40,000 major works notice is a different conversation — but still one we will have honestly.
Send us the lease details and your latest service charge statement and we will give you a firm, no-obligation figure.
Frequently asked questions
Can I sell a flat with a lease under 80 years?
Yes, but most high street lenders will not lend below roughly 70 years remaining, and many require 40 years left at the end of the mortgage term. That pushes you toward cash buyers or investors.
What is marriage value?
Once a lease drops below 80 years, the freeholder is entitled to 50% of the uplift in value created by extending. It typically adds thousands to the premium, which is why extending before 80 years matters.
Do I have to own the flat for two years to extend?
To use the statutory route, yes — two years of ownership. A buyer can take an assignment of your statutory notice at completion, which is a common workaround.