Buying a leasehold flat: what to check before you commit
By Chris Pollitt · Last checked 6 November 2026 · 2 min read
Most flats in England and Wales are leasehold, and some houses are too. Leasehold means you own the right to live in the home for a fixed number of years, while the building and land belong to a freeholder. It works perfectly well for millions of people, but there are extra things to check, and they can affect both what you pay now and what you can sell for later.
Lease length
This is the first thing to look at. Leases often start at 99, 125 or 999 years. Once a lease drops below about 80 years, extending it gets noticeably more expensive, because of a charge called marriage value. Many lenders won't lend on leases below 70 years, and some want more. A short lease isn't a reason to walk away, but the price should reflect the cost of extending, and it's often best to agree with the seller that they start the extension before you buy.
Ground rent
Ground rent is a yearly payment to the freeholder. Most new leases created since mid-2022 have a ground rent of zero. Older leases may have a fixed rent, or one that rises over time. Leases where the rent doubles every few years have caused real problems for owners, and some lenders won't accept them. Ask your conveyancer to explain exactly how the ground rent works.
Service charges
The service charge covers maintaining shared parts of the building: cleaning, lighting, lifts, gardens, insurance and repairs. Ask for the last three years of accounts and the current budget. Look for sudden jumps, and ask whether there's a reserve fund for big jobs. A low service charge with no reserve fund can mean a large bill later.
Major works
Ask whether any big works are planned, such as a new roof, lift replacement, external decoration or cladding work. Leaseholders are usually asked to pay a share. Your conveyancer will ask the managing agent, but raise it early yourself.
Restrictions in the lease
Leases often say what you can and can't do: keep pets, sublet, run short-term holiday lets, lay wooden floors, or make alterations. Make sure the rules fit how you plan to use the home.
Who manages the building?
Find out whether the building is managed by the freeholder, a managing agent, or a residents' management company. A well-run building with responsive management makes ownership much easier. Ask the seller how they've found it.
Leasehold houses
Some newer houses were sold as leasehold, often with rising ground rents. If you're buying a leasehold house, check whether you could buy the freehold and what it might cost.
The law is changing
Leasehold reform has been under way for several years, with new rules intended to make it cheaper and easier to extend a lease or buy the freehold, and to ban new leasehold houses. Not all of it is in force yet. Ask your conveyancer how the current rules affect the home you're buying.