Selling a short lease property may sound complex at first, but with the right approach it can be a smart, rewarding move. Whether you’re marketing a leasehold flat in a prime location or exploring buy to let investment opportunities, knowing how to position your property can make all the difference.
From understanding what a short lease is to exploring the lease extension process, this guide will help you make informed decisions and present your home to the right audience.
What is a short lease?
A short lease typically refers to a leasehold property with fewer than 80 years left on the lease. It’s most common with flats, where you own the property but not the land it stands on. This land is owned by a freeholder, and your lease outlines how long you can occupy the space.
When a lease starts to run down, it’s not a problem, it just means it’s time to review your options. Buyers today are more informed and open to buying a short lease flat, particularly when the long-term value is clear.
Related: Leasehold vs. freehold: What’s the difference and why it matters
What are the benefits of selling a short lease property?
It might surprise you, but selling a flat with a short lease offers a number of unique advantages:
- Appeals to investors: Many buy to let investors actively look for lower-priced opportunities where they can add value through a lease extension.
- Quicker transactions: Properties with short leases are often bought by experienced buyers or cash purchasers, meaning a faster sale is possible.
- Prime location potential: Many short lease flats are in well-established, in-demand areas where demand never drops.
When approached strategically, selling leasehold property can open the door to a whole new pool of buyers.
Related: What to consider when assessing an offer
Understanding the lease extension process
Extending the lease is one of the best ways to enhance the marketability of your property. Here’s a quick guide to the lease extension process.
Statutory lease extension
If you’ve owned your property for two years or more, you’re legally entitled to a statutory lease extension. This adds 90 years to your current lease and reduces ground rent to zero.
The process typically includes:
- Valuation by a qualified surveyor
- Serving a formal notice to the freeholder
- Negotiating a premium
- Covering both parties’ legal and survey costs
Related: A complete guide to solicitors’ fees when selling your home
Informal lease extension
You can also agree terms directly with the freeholder – this is often faster but offers fewer protections than the statutory route. Terms such as ground rent and length are negotiable.
If you’re close to selling, you can even assign the right to extend the lease to your buyer. This allows the sale to progress smoothly while still giving the new owner flexibility.
Marketing a short lease property
Success in selling a flat with a short lease lies in smart, honest marketing. Here are some tips to attract the right buyers:
- Be upfront: Clearly share the lease length and terms in your listing. Buyers appreciate transparency.
- Highlight strengths: Focus on location, layout, natural light, and value. These are key drivers in buyer decisions.
- Show potential: Let buyers know the property offers an excellent opportunity to add value through lease extension or renovation.
- Appeal to investors: Mention rental yield, tenant demand in the area, and the potential uplift in property value after a lease extension.
- Work with experts: Get strategic advice to position your property for maximum appeal to landlords, developers, and cash buyers.
Buyers looking for buy to let investment opportunities are often actively searching for homes like yours. The key is showing the property’s long-term value, not just the lease length.
Buy to let investment opportunities
Short lease properties can be an ideal fit for seasoned investors. Why?
- Lower entry cost: Properties with a short lease are typically priced below market value, allowing investors to maximise capital appreciation.
- Rental demand: Well-located flats with shorter leases can still generate steady rental income, especially in popular urban areas.
- Room for uplift: Investors can extend the lease after purchase, significantly boosting resale value.
When it comes to buying a flat with a short lease, many landlords are willing to invest in areas with high tenant demand. Presenting your property with key investment figures such as potential rent, service charges, and lease extension estimates can make it stand out.
Is selling a leasehold property right for you?
Absolutely. Whether you’re working with an assured tenancy or preparing to sell a flat with 75 years remaining on the lease, there’s always a path forward.
Here’s a quick checklist for sellers:
- Check the exact lease length and confirm key terms
- Consider whether extending the lease before sale adds value
- Gather all relevant documents: lease agreement, ground rent details, and service charge history
- Choose a sales agent with leasehold experience
- Decide whether to sell to homeowners, investors, or both
With the right support, selling a short lease property can be both smooth and profitable.
Strategic selling for leasehold success
Lease length shouldn’t hold you back, it should guide your strategy. Whether you’re selling to an investor or a future homeowner, the right advice, marketing, and timing can help you turn your short lease flat into a valuable asset.
At Whitegates, we’ve helped hundreds of sellers like you navigate the leasehold market and find the right buyer at the right price. If you’re considering a sale, get in touch with your Whitegates local branch for a free valuation and a tailored action plan.
