Selling a flat with a short lease
If your flat has 80 years or fewer left on its lease, it's harder to sell. Extending the lease gets much more expensive at that point, and many buyers can't get a mortgage on it, so fewer people can buy and those who can will expect a lower price. You have four main choices: extend before you sell, start the legal extension process and pass it to your buyer, sell as it is on the open market or at auction, or sell to a cash buyer.
This guide covers flats in England and Wales, explains where the leasehold reforms stand in October 2026, and sets out the honest pros and cons of each route. It's general information, so speak to a solicitor or a specialist valuer about your own lease. The Leasehold Advisory Service (LEASE) gives free initial advice.
What counts as a short lease?
There's no legal definition, but 80 years is the number that matters most. GOV.UK says that when there are 80 years or less left on a lease, the cost of extending it "increases significantly". That's because of marriage value, explained below.
Mortgage lenders also set their own minimum lease lengths. Once a lease drops below a lender's minimum, buyers who need that lender can't buy. The shorter the lease, the smaller the pool of buyers, and the more the price has to come down to attract the ones who are left.
To work out how long is left, take the start date and the length of the lease (both are in the lease, and usually on the HM Land Registry title register) and count forward. Don't rely on the figure you remember from when you bought.
Why the 80-year mark matters: marriage value
When you extend a lease, you pay the freeholder a premium. Under the current rules, if the lease has more than 80 years left, marriage value is treated as nil. At 80 years or less, the premium also includes half of the "marriage value": broadly, the extra value the flat gains from having a longer lease. That rule is in Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993.
On top of the premium, you pay the freeholder's reasonable costs of checking your claim, valuing the flat and granting the new lease, as well as your own solicitor and valuer. LEASE has a lease extension calculator that gives a rough idea of the premium, but a valuation from a surveyor who specialises in lease extensions is the figure to rely on.
Every year that passes, the lease gets shorter and the premium usually goes up.
Where the leasehold reforms stand (October 2026)
The Leasehold and Freehold Reform Act 2024 will make extensions cheaper, but most of the changes that affect the price aren't in force yet.
| Change | Status in October 2026 |
|---|---|
| No need to own the flat for two years before extending | In force since 31 January 2025 (England and Wales) |
| Statutory extensions of 990 years instead of 90 | Passed, not yet in force |
| Marriage value removed, with prices worked out using rates set by the government | Passed, not yet in force |
| Leaseholders stop paying the freeholder's costs (with limited exceptions) | Passed, not yet in force |
| Ground rent on older leases capped at £250 a year, falling to a peppercorn after 40 years | Proposed only, in the draft Commonhold and Leasehold Reform Bill |
The government says the price changes can't start until technical problems in the 2024 Act are fixed by a further law, the Commonhold and Leasehold Reform Bill, and regulations setting the valuation rates are made. It consulted on those rates in 2026. A group of freeholders challenged the reforms in the High Court and lost, but that decision is under appeal. No start date has been announced.
Should you wait for the reforms?
If you don't need to sell soon, waiting could cut the cost of extending once the changes start, especially for leases under 80 years. But nobody can say when that will be, and the details could still change. If you need to sell now, the current rules are the ones your buyer will price in. A specialist solicitor or LEASE can help you weigh it up for your own lease.
Your options for selling
1. Extend the lease, then sell
Extending first makes the flat mortgageable for more lenders and widens the pool of buyers. There are two ways to do it.
The statutory route. If you qualify (broadly, if you own a flat on a long lease), you have a legal right to a new lease that adds 90 years to the term, at a peppercorn (zero) ground rent. Your solicitor serves a formal notice on the freeholder, known as a section 42 notice, proposing a premium. The freeholder has at least two months to reply with a counter-notice. If you can't agree the terms, either side can apply to a tribunal, and that must be done within six months of the counter-notice.
The informal route. You can ask the freeholder to extend the lease at any time and negotiate the terms. It can be quicker, but the freeholder doesn't have to agree, and the terms may not match what the law would give you, such as the length of the extension or the ground rent. Have a solicitor check any offer before you accept it.
Either way, extending can take months, and you pay for it before you see the benefit in the sale price.
2. Start the extension and pass it to your buyer
You can serve the section 42 notice and then sell the flat with the benefit of the notice. The law lets the rights under the notice pass to the buyer along with the lease. If the lease is sold without it, the notice is treated as withdrawn.
This can help because the premium is valued at the date the notice was given, and the buyer doesn't start from scratch. There are costs on both sides (your solicitor and valuer, and the freeholder's reasonable costs), so agree with your buyer who pays what. Your solicitor handles the transfer of the notice at completion.
3. Sell as it is, through an agent or at auction
A short-lease flat can still sell through an estate agent, usually to buyers with cash or with a lender that accepts the lease length. Expect buyers to take the cost of extending, plus their own costs and risk, off what they offer. Auction is another route, but there are fees and the price isn't certain.
4. Sell to a cash house buyer
A cash buying company can buy a flat that lenders won't lend on. You'll usually get below market value, because the buyer takes on the cost and work of extending the lease and the risk of reselling. That trade can make sense when the lease is very short, the flat needs work, or you need to sell by a set date.
Comparing the routes
| Route | Price | Speed | Suits |
|---|---|---|---|
| Extend, then sell | Usually the highest sale price, but you pay for the extension first | Slowest: months to extend, then the sale | Owners who can wait and fund the premium |
| Serve the notice, then sell | Depends on how much buyers value the head start | Similar to a normal sale | Owners who want to move but keep the extension moving |
| Sell as it is through an agent | Lower, as buyers price in the extension | Depends on finding a suitable buyer | Leases still long enough for some lenders |
| Auction | Uncertain, plus fees | Weeks once listed | Very short leases, or flats needing work |
| Cash house buyer | Below market value | Can be a few weeks | Very short leases, flats needing work, or a fixed deadline |
When extending first is likely to get you more: the lease is just under 80 years, the flat is in good condition, and you can fund the premium and wait. Ask a valuer what the flat would be worth with and without a longer lease, and compare the difference with the full cost of extending.
When a quick sale can make sense: the lease is very short, you can't fund the premium, the flat needs work, or you need to sell by a set date. We buy flats as they are across England and Wales, make an offer within 24 hours and pay your legal fees. Our offer is below market value, we explain how we worked it out, and there's no obligation to accept.
How much does a short lease reduce the price?
There's no fixed rule. It depends on how many years are left, the ground rent and how it rises, the service charge, the flat's condition and local demand. A RICS-registered valuer who handles lease extensions can tell you what the flat is worth with and without a longer lease.
You can also look at what similar flats nearby have sold for, but bear in mind their leases may be much longer than yours. Our guide on how to get a house valuation explains the options, and below market value explained helps you judge any cash offer.
Checklist before you sell
- A copy of the lease and the title register from HM Land Registry
- The exact number of years left on the lease
- The ground rent: how much it is, and whether and how it rises
- The latest service charge accounts and budget
- The freeholder's and managing agent's contact details
- A specialist valuation for a lease extension, if you're considering one
- Any section 42 notice you've served, and the freeholder's reply
- Free advice from LEASE if you're unsure of your rights
For the rest of the paperwork and the steps in a leasehold sale, see selling a leasehold flat.
Questions people ask
Can you sell a flat with less than 80 years left on the lease?
Yes. It's legal and common, but fewer buyers can get a mortgage on it, and they'll expect the price to reflect the cost of extending. Under the current rules, extending costs more once a lease has 80 years or less left, because the freeholder gets half the marriage value. Your options are to extend first, serve the extension notice and pass it to your buyer, or sell as it is through an agent, at auction or to a cash buyer.
Is it worth extending a lease before selling?
It depends on the numbers. A longer lease makes the flat mortgageable for more lenders and usually lifts its value, but the extension can take months and you pay for it before you sell. Ask a specialist valuer what the flat is worth with and without the extension, and compare the difference with the total cost, including the freeholder's costs and your own solicitor and valuer.
Can my buyer extend the lease straight after buying?
Yes. Since 31 January 2025, leaseholders in England and Wales no longer have to own a flat for two years before using the legal right to extend, so a buyer can start straight after completion. Some buyers still prefer you to serve the notice before the sale and pass it on, because the premium is then valued at the date of your notice and the process is already under way.
Has marriage value been abolished?
Not yet. The Leasehold and Freehold Reform Act 2024 removes marriage value, but as of October 2026 that part isn't in force. The government says it first needs a new law to fix technical problems in the Act, and regulations setting the valuation rates. Freeholders' legal challenge to the reforms is also under appeal. No start date has been set, so check the latest position with LEASE or a solicitor.
Can you get a mortgage on a flat with a short lease?
Sometimes. There's no single legal limit: each lender sets its own minimum lease length. As the lease gets shorter, fewer lenders will lend on it, and eventually only buyers with cash can buy. A mortgage broker can tell a buyer which lenders would consider a particular flat, so it's worth checking before you choose how to sell.
Sources
- Leasehold property: extending, changing or ending a lease (GOV.UK)
- Leasehold toolkit: England (GOV.UK)
- Plain English explainer: extending your lease or buying your freehold (GOV.UK)
- Leasehold and Freehold Reform Act 2024 (Commencement No. 2 and Transitional Provision) Regulations 2025 (legislation.gov.uk)
- Leasehold and Freehold Reform Act 2024, section 33: longer lease extensions (legislation.gov.uk)
- Leasehold and Freehold Reform Act 2024, section 37: new method for calculating the price (legislation.gov.uk)
- Leasehold Reform, Housing and Urban Development Act 1993, Schedule 13 Part II: marriage value (legislation.gov.uk)
- Leasehold Reform, Housing and Urban Development Act 1993, section 42: the tenant's notice (legislation.gov.uk)
- Leasehold Reform, Housing and Urban Development Act 1993, section 43: assigning the notice (legislation.gov.uk)
- Leasehold Reform, Housing and Urban Development Act 1993, section 48: applications to the tribunal (legislation.gov.uk)
- Leasehold Reform, Housing and Urban Development Act 1993, section 60: the landlord's costs (legislation.gov.uk)
- Practice guide 27: the leasehold reform legislation (HM Land Registry)
Related guides
Selling a leasehold flat: the process, costs and timescales
Selling a leasehold flat follows the same steps as any sale, plus extra paperwork: the lease, a management pack from the freeholder or managing agent, service charge and ground rent details, and sometimes the freeholder's consent. Order the management pack as soon as you decide to sell, because as of October 2026 there's no legal deadline or fee cap for providing it.
Selling fastBelow market value explained
Below market value (BMV) means a price lower than a home would be expected to fetch on the open market, given proper marketing and a reasonable amount of time. Cash and quick-sale buyers usually offer below market value because they take on costs and risk and need to make a profit. Whether a BMV offer is fair for you depends on what you'd actually keep from each route, and how soon you need the money.
Selling fastSelling a house at auction: how it works, what it costs and the risks
At a traditional auction in England and Wales, contracts are exchanged when the hammer falls and completion usually follows four to six weeks later. In a conditional (modern method) auction, the winning bidder usually has about four weeks to exchange. You pay the auctioneer's fees, the price depends on the bidding, and a home in good condition often sells for more through an estate agent.
General information for England and Wales, not legal, tax or financial advice. Last checked 26 October 2026.