Buying a property with a short lease: risks, options and what to check

If you’re looking at a property with a short lease, you’re right to pause, but it’s not automatically a deal-breaker. Short leases are common, especially with flats, and many buyers complete purchases safely once they understand the risks and their options.This guide explains what “short lease” actually means, why it matters, and what to check before you commit.

What counts as a “short lease”?

In England and Wales, a lease is considered “short” once it drops below 80 years remaining.

That 80-year point matters because:

• Mortgage lenders become more cautious
• The cost of extending the lease increases sharply
• Future buyers may struggle to get finance

A lease with:

• 90+ years → usually straightforward
• 80–89 years → still mortgageable, but time matters
• Below 80 years → higher risk, higher costs, fewer lenders

Why short leases are risky

1. Mortgage problems

Many lenders won’t lend on leases below a certain length, often 70–75 years, sometimes more. Even if you can get a mortgage today, the next buyer might not.This can:

• Reduce demand for the property
• Make it harder to sell later
• Affect the price you can achieve

2. Lease extension costs rise fast below 80 years

Once a lease drops under 80 years, something called “marriage value” applies. In simple terms, you’re required to share the uplift in value created by the extension with the freeholder.That can add tens of thousands of pounds to the cost compared with extending earlier.

3. Long-term value erosion

As the lease shortens:

• The property becomes less attractive
• Buyers have fewer options
• Discounts widen year by year

Left unchecked, a short lease can quietly drain value even if the property itself is in good condition.

Your main options as a buyer

Option 1: Ask the seller to extend the lease

This is often the cleanest solution.If the seller has owned the property for at least two years, they can:

• Start the lease extension process
• Assign the benefit to you on completion

This avoids waiting two years yourself and gives clarity upfront.

Option 2: Negotiate the price

If no extension is in place, buyers usually:

• Get an estimate for the extension cost
• Reduce the purchase price to reflect it

Be cautious here. Extension costs can change depending on:

• Ground rent terms
• Freeholder behaviour
• Valuation assumptions

Option 3: Proceed and extend later

This is riskier and usually only makes sense if:

• The lease is still mortgageable
• You have a clear plan and funds to extend
• You’re comfortable owning for at least two years before extending

What to check before you make an offer

1. Exact years remaining

Don’t rely on estate agent descriptions like “short but extendable”.
Ask for the exact lease length your conveyancer will confirm this from the title.

2. Ground rent terms

Look for:

• High ground rent
• Doubling clauses
• Review periods that accelerate costs

These can affect mortgageability even if the lease length is acceptable.

3. Who the freeholder is

An individual freeholder, resident-owned company, or large investment freeholder can each behave very differently when it comes to extensions, timing, and negotiation.

4. Service charge and management history

Short leases often appear alongside:

• Poorly managed blocks
• Disputes with freeholders
• Deferred maintenance

Your legal enquiries should surface this, but early warning signs help.

5. Whether the property has been extended before

A previously extended lease can still be short if:

• It was extended by a modest number of years
• Time has simply passed

Don’t assume “extended once” means “safe”.

How surveys and legal work fit in

A property survey won’t value the lease itself, but it does matter because:

• Short leases magnify risk, hidden defects hurt more when resale is harder
• Lenders and valuers view short leases alongside the property condition

Legal work is critical here. Your conveyancer should:

• Confirm statutory extension rights
• Flag lender-specific issues
• Advise on timing and risk, not just paperwork

When a short lease can still make sense

Buying with a short lease can be reasonable if:

• The price reflects the true cost and risk
• The extension route is clear and affordable
• You’re buying for the long term
• You’ve pressure-tested resale and mortgage options

It’s rarely about whether the lease is “bad”, it’s whether you’re paying the right price for the risk.

The bottom line

Short leases aren’t rare, but they are unforgiving if misunderstood.
The biggest mistakes happen when buyers:

• Assume they’ll “sort it later”
• Underestimate extension costs
• Rely on vague assurances

Clarity early saves money, stress, and resale pain later.

Final question to ask yourself:
If nothing changes, would I still be happy owning this property in five years’ time? And remember, a conveyancer can help you identify more risks related to leasehold properties. You can find one here: