Start with the lease, not the dcor
Buying leasehold usually means buying the right to occupy a property for the years left on a lease, while a freeholder owns the building or land. The lease controls what you and the landlord must do, the charges you can face and how you may use the home.
Ask for the remaining lease term before offering. It does not reset when the flat is sold. Lender requirements vary, and a short remaining term can affect mortgage availability, value and future saleability. Have your conveyancer and lender assess the actual lease rather than relying on an agent's verbal answer.
Understand every recurring charge
Request the current service charge, several years of accounts and the latest budget. Find out what the charge covers, how your share is calculated, whether payments are up to date and whether there is a reserve or sinking fund for irregular work.
Check the ground rent and any review formula. Most qualifying new leases granted from 30 June 2022 can charge only a peppercorn ground rent, but buying an older lease after that date does not remove an existing ground-rent clause. Your lender may have its own acceptance criteria.
Look for the next large bill
Ask about planned major works, completed works not yet fully billed, consultation notices and the adequacy of any reserve fund. Roofs, lifts, windows, external walls and fire-safety work can create large demands that are not obvious from the current monthly service charge.
For relevant blocks, ask your conveyancer to investigate building-safety and cladding information. Do not assume a satisfactory mortgage valuation proves there is no building-level issue or future service-charge exposure.
Read the rules you will live under
Leases can restrict pets, subletting, short lets, business use, hard flooring and alterations. They may require permission and an administration fee. Check that previous alterations to the flat had every consent required by the lease and planning or building rules.
Also confirm what is included in the property—loft, balcony, parking space, garden or storage—and who must repair windows, pipes and other boundaries between the flat and common parts.
Questions to answer before exchange
- How many years remain, and will the lender accept the lease?
- What were the last service charges and what is this year's budget?
- Are major works, disputes, arrears or building-safety issues recorded?
- What ground rent, review clauses and administration fees apply?
- Do the lease restrictions fit how you plan to live in the home?
Sources and further reading
- GOV.UK: Buying or owning a leasehold home
- GOV.UK: Leasehold service charges and ground rent
- LEASE: Checks before buying a leasehold flat
Lease terms and lender criteria vary. Get independent legal advice on the specific lease before exchange. This article was last checked on 11 August 2026.