Leasehold Conveyancing Explained

What's checked when you buy a leasehold property

• How many years are left on the lease. A shorter lease can affect the property's value and whether lenders will lend on it, and can be expensive to extend.
• Ground rent: how much it is and whether, and how, it can rise.
• Service charges: what you'll pay towards the building, what's in the reserve fund, and whether major works are planned.
• Restrictions in the lease, for example on letting, pets or alterations.
• For some taller residential buildings, building safety information under the Building Safety Act 2022.
• The management information pack from the landlord or managing agent, which answers most of these questions.

Selling a leasehold property

As a seller, you'll usually need to buy the management information pack from the landlord or managing agent for the buyer's solicitor, along with filling in the Leasehold Information Form (TA7). The pack's price is set by them, not your conveyancer, and can run to several hundred pounds, so it's worth requesting early: it's one of the most common causes of delay.

Leasehold costs to expect

• A leasehold supplement on the conveyancing fee. Many firms charge one for the extra work.
• The management information pack (paid by the seller).
• Fees payable to the landlord or managing agent when you buy, for example for a notice of transfer or a deed of covenant.
• Any service charge or ground rent apportioned on completion.

On Conveyancing Network, a firm's leasehold supplement is built into its quote when you tell us the property is leasehold. If you're not sure, you can say so: the supplement is then shown as a conditional cost beside the quote, rather than added to it, so you can still compare firms fairly. The management pack and landlord's fees are always flagged, because no conveyancer can fix their price.

Not sure if a property is leasehold?

Ask the estate agent, and check the listing. You can also buy a copy of the title register from HM Land Registry for a small fee: a leasehold property has its own leasehold title. Flats are almost always leasehold, apart from the less common commonhold and share-of-freehold arrangements.

Leasehold reform

Parliament passed the Leasehold and Freehold Reform Act 2024, and its changes are being brought in over several years. They include changes to lease extensions and to buying the freehold. Your conveyancer will explain how the rules in force at the time affect your purchase or sale.