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Transparent pricing, from start to finishGet the support you need, when you need itTrusted lawyers, clear expectations
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
Selling a leasehold property differs from selling a freehold property in a few key ways. You may face additional fees of service charges and ground rent paid to third parties such as management companies and the freeholder. Additionally, shorter leases can impact the selling price for a leasehold property, which is not an issue with freehold property.
This is the ultimate guide for individuals looking to sell a leasehold property. The content will cover the key steps in the leasehold property selling process, address the key legal considerations, and discuss the role of a leasehold solicitor in ensuring a smooth transaction.
We’ve written this for:
When selling a leasehold property, you will need to understand your lease terms and be able to communicate these to buyers. Prospective buyers understandably want to know as much about a leasehold property as possible before considering an offer. They are more educated on the intricacies of leasehold properties than ever before and have many concerns and questions to help determine whether your property is a feasible home and investment for them.
When buying leasehold, buyers often ask about the remaining lease length, how much is due in ground rent and service charges to name a few common questions. Because of this, it helps to be familiar with this information and have a copy of the details that buyers commonly request to hand. Property solicitors can help review your lease to extract these details for you.
This information is often presented together in a leasehold information pack. Buyers often request them and if you have a managing agent in charge of your property the buyer’s solicitor will request this from them. Leasehold information packs also include important details about the property like any major works planned by the freeholder and any previous works.
Be proactive in providing a pack for buyers as chasing this information can often cause a delay in leasehold sales. As a seller, you’ll typically be charged by your leaseholder to provide this information, however chasing them to provide it is important as it can be the difference between a timely sale and unnecessary delays. It is also worth being aware of any queries the buyer’s solicitor has about the sale. This will give you the time you need to find out answers to their questions.
Leasehold valuations are determined by taking into account factors such as the length of the lease and the condition of the property. The market value of the property is also considered along with its marriage value. This is the increase in the value that occurs when someone has two interests in a property.
Regarding lease length, leases with less time remaining on the lease are typically less valuable than similar properties with longer leases. The value of the property if it were let on the open market is also a factor of consideration. As are any deductions for properties let on assured shorthold tenancies.
Sellers need to follow a legal process to sell a leasehold property.
As with selling a freehold property, most sellers instruct a leasehold solicitor to act on their behalf in the leasehold selling process. Solicitors review the lease, liaise and negotiate with the freeholder to ensure the correct documents are provided, handle the exchange of contracts and process payments.
The seller’s solicitor also handles inquiries from the buyer’s solicitor regarding the lease, service charges, and any upcoming maintenance work.
Many sellers choose to extend their lease before selling, particularly if the lease has fewer than 80 years remaining. This is because longer leases make it easier to sell a leasehold property.
Longer leases increase the value of a leasehold property as buyers are wary of buying a property with a short lease and being faced with the costs of having to extend the lease in the future. By marketing a leasehold property with a longer lease buyers are more willing to pay a higher purchase price as they can budget in the costs of extending a lease.
Buyer interest increases with longer term lengths and for buyers it’s practical to consider longer lease terms as mortgage providers may not provide mortgages for short leases, especially properties with fewer than 80 years remaining on their lease.
The process of a lease extension is managed with the assistance of a property solicitor who specialises in lease extensions and a surveyor. Solicitors can help sellers correctly serve a Section 42 Notice to inform the freeholder of their intention to extend the lease.
Surveyors assist sellers by valuing the lease extension and negotiating on price with the freeholder. The process of extending a lease can often take as long as 12 months, with 8-12 months being a common range. Without extending the lease, when short, sellers may receive lower offers and fewer interested buyers and be limited to cash sales and auctions.
The final stages of the selling process include exchanging contracts, transferring ownership, and completing the sale. When contracts have been exchanged sellers can no longer accept another offer. Both parties are bound to complete the sale, pulling out at this point is a breach of contract and will level financial penalties on the guilty party. Sellers may be able to sue buyers for damages if they pull out at this stage.
At the point of exchange, sellers agree a completion date with the buyer, usually about a week after the exchange of contracts. At this point, the sale is complete and the seller has to vacate the property.
Selling a leasehold property is more complex than a freehold property and it comes with risks. The main consideration when selling a leasehold property is the lease length. A short lease (fewer than 80 years remaining) can affect the sale price and buyer interest. Leaseholders have options to extend their lease before selling.
Disputes can arise over service charges, ground rent and any major works that are planned. These can delay the sale, so it’s important for sellers to mitigate these issues by providing a comprehensive leaseholder information pack for the buyer as soon as possible.
Sellers also need to be proactive and answer any inquiries that the buyer’s solicitor has in good time.
Here are some common questions seller’s solicitors have:
There are several costs involved in selling a leasehold property. These include solicitor fees for conveyancing for leasehold properties, handling inquiries, and dealing with the freeholder. There are also fees from the freeholder and managing agent. The freeholder or managing agent may request payment for providing the leasehold information pack or dealing with the transfer of ownership.
Typically, it will take anywhere from a few weeks to a year to sell a leasehold property. Depending on the circumstances it could take be completed in as little as a week or over a year. It all depends on the responsiveness of the freeholder and managing agent. Commonly a chain-free sale won’t take longer than three months, however, when there are complications with the lease the timeline can lengthen.
You can get a lease extension if you have owned their property for more than two years. Leaseholders have the opportunity to extend their lease by 90 years as a statutory right. As a leaseholder you can extend your lease formally under the law if you meet the statutory conditions, or by taking an informal route and asking the freeholder if they are willing to negotiate a lease extension.
Here are the reasons leaseholders come to Lawhive property solicitors for expert advice:
The key steps when selling a leasehold property include obtaining a leaseholder information pack, getting your lease valued and extending shorter leases to boost the marketability of a property for sale. It’s a complex and sometimes lengthy process that will require the guidance of professional legal advice for a smooth transaction without delays, or the possibility of disputes between sellers and buyers.
If you’re looking to sell your leasehold property with minimal fuss our expert property solicitors will ensure your leasehold property sale is handled professionally and without complications. Get in touch with us today to book your free case assessment and discuss your circumstances.
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