Estate agents should identify lease length, ground rent and restrictions before marketing leasehold homes to prevent unexpected problems delaying transactions, specialists have warned.
Homehold said buyers can discover only after making an offer that a lease restricts pets, subletting or alterations, while short remaining terms and escalating charges may affect mortgage availability and valuation.
These issues are particularly relevant to agents handling flats. The latest government estimates show England had approximately 4.9 million leasehold homes in 2024/25, including 3.38 million flats.
Providing accurate information earlier could help buyers assess whether a property meets their requirements before incurring mortgage, legal and survey costs.
LEASE RESTRICTIONS
Linz Darlington (main picture, inset), Managing Director of Homehold, says: “When buyers, particularly first-time buyers, are on the hunt for a new home, the concept of owning a leasehold property can be very confusing.
“There can be a real stigma around owning a leasehold property, as essentially you are only owning the property for an agreed period of time.”
Homehold said agents should establish whether consent is required for keeping pets, letting the property or carrying out alterations such as extensions and loft conversions.
Vendors should also be asked for details of service charges, planned major works, ground rent, building insurance and any disputes involving the freeholder or managing agent.
LEASE LENGTH
A shorter lease does not automatically make a property unmortgageable but lender requirements vary and the remaining term can reduce the range of available products.
The 80-year point is also significant under the existing lease-extension valuation system because marriage value can become payable below that threshold. Reforms are intended to change the extension process but not every provision of the Leasehold and Freehold Reform Act 2024 is yet operational.
Sellers and agents should therefore avoid quoting indicative extension costs without advice from a qualified valuer or solicitor.
GROUND RENT REFORM
The Government has proposed capping ground rents in older residential leases at £250 annually before reducing them to a peppercorn after 40 years.
However, the measure remains part of the draft Commonhold and Leasehold Reform Bill and has not yet taken effect.
Homehold says agents could improve transaction certainty by gathering the lease, management information and details of charges when a property is first listed rather than waiting until conveyancing is underway.
