Can You Sell a Leasehold Property?

Leasehold properties are different from freehold properties in some key ways. This is especially true when buying and selling the property.

What is a leasehold property?

Leasehold is a type of property ownership. It means the owner owns the property itself, but not the building or the land it is on. This is common for dwellings like flats.

The person who owns the building or land is called the freeholder. Owners of leasehold properties may need to pay ground rent or other fees to their freeholder. Conversely, a freehold property is one where the land it sits in is included in the deed, and therefore no ground rent or other charges are incurred.

Can you sell a leasehold property?

Selling a leasehold property is possible but will require a couple of extra steps in order to complete the transaction.

What are the steps to selling a leasehold property?

In order to sell your home under a leasehold, any charges remaining to the freeholder will need to be settled. The landlord or freeholder will need to be informed of your intention to sell. There may be other leaseholders who have first refusal rights on purchase who will also need to be informed. The seller can then place the property on the market and advertise it on websites like Rightmove.

The next step is to contact a conveyancer, who will assist in the process of selling the property by ensuring that all proper legal procedure is followed. They will ask you to provide a ‘seller’s pack’, which includes documents such as the lease and those pertaining to your relationship with the freeholder, like the accounts for any charges and the building’s insurance schedule.

When an offer is accepted, both parties exchange contracts and are bound to the completion of the process and agree a date for completion.

DFA Law offers conveyancing services for both leasehold and freehold properties. Learn more about what’s involved when selling your property.