Most buyers don't read the lease before exchanging contracts. That's a costly mistake. Here's what to check, step by step, or with LEASE-iQ.
Information only. Not legal advice. Always take professional advice before acting.
Don't have a copy of your lease?
Most leaseholders never see the original after the conveyancing pack. The good news: leases are public documents. Order a copy from HM Land Registry for £7, emailed within 24 hours. You only need your address.
Get your lease from HMLR →Most property surveys focus on the building's physical condition. Your survey doesn't tell you what the lease costs, restricts, or requires. That's on you to discover. Get it wrong, and you inherit the freeholder's obligations and a rapidly depreciating asset.
Below 80 years, lease extension costs escalate rapidly due to marriage valueUnder the 1993 Act, Schedule 13, the freeholder receives 50% of the increase in property value from combining the leasehold and freehold interests. Only applies below 80 years.. Lenders may refuse to mortgage short leases. Buying at 75 years can cost tens of thousands more than buying at 125 years.
Your surveyor won't tell you the full picture. Ground rent may double every 10 or 20 years. Service charges rise. Ask for three years of accounts. Average service charges can reach £3,000 to £5,000 per yearProperty Institute Service Charge Index 2024. National average is £2,405/year. London averages £2,801. Three-bedroom flats average £3,146..
Is the building managed by a professional agent, a Right to Manage (RTM) company, or a Section of Freehold (SoF)? Each structure has different costs, accountability, and your say in decisions.
Can you sublet? Can you run a business? Can you keep pets? Can you renovate your kitchen? Your lease defines your rights. Some leases restrict almost everything.
Retirement developments often contain event fees, exit fees, and transfer feesRetirement developments commonly include "event fees" or "transfer fees" triggered on resale, often 1% to 10% of the sale price. These are buried in the lease and rarely flagged by estate agents. The CMA has investigated unfair practices in the retirement sector. CMA leasehold investigation triggered when you sell, typically 1% to 10% of the sale price. Service charges for communal lounges, house managers, and restaurants can reach £8,000 to £15,000 per yearRetirement development service charges are significantly higher than standard leasehold flats due to staffed communal areas, emergency call systems, house managers, guest suites, and maintained gardens. Charges are rarely negotiable and escalation clauses are common. Families often discover these costs after a bereavement, when selling is urgent and negotiation is impossible.. Families often discover these costs only after a bereavement, when selling is urgent and options are limited.
Do these in order. Or upload your lease and ask LEASE-iQ to find the answers for you.
What is the unexpired term? If it's below 80 years, you're facing lease extension costs. Calculate the cost: below 80 years, "marriage value" (half the property value increase) applies, making extensions expensive.
Ask your seller's solicitor or agent for the most recent accounts. Are charges rising? Are there planned major works? A budget of £50,000 to £200,000 for external works can be lurking in future forecasts.
Ask the managing agent or freeholder: are there any planned refurbishments, roof works, or structural repairs? These get passed to leaseholders via a section 20 consultationLandlord and Tenant Act 1985, s.20. Consultation required when costs exceed £250 per leaseholder. Three stages with 30-day response periods.. Your share could be significant.
Does ground rent double every 10, 15, or 20 years? Some leases have "doubling clauses" that make the flat increasingly unaffordable over time. Check the precise wording.
Is the freeholder actively managing, or is there an RTM company or SoF? Who sets the service charges? Who can you appeal to if charges feel excessive? Check the lease and ask directors how it works in practice.
⚠️ Important: Once you exchange contracts, you're committed to the purchase. Changes to the lease, requests for extra charges, or discovery of onerous covenants cannot stop you from completing. Always seek a solicitor's review of the lease and service charge history before exchanging.
Upload your lease. Ask:
Most buyers don't read their lease before exchanging contracts. The cost of that mistake varies, but it's real.
The Leasehold Reform (Ground Rent) Act 2022Leasehold Reform (Ground Rent) Act 2022. Ended ground rents for most new residential leases. Existing properties remain subject to their original terms. ended ground rents on new leases. Existing properties remain subject to their original terms, some of which are onerous and poorly understood by buyers.
If you're a director of an RTM, SoF, or management company, or the freeholder, a sale creates obligations. You may need to provide information, flag issues, or ensure the incoming buyer understands their obligations.
Solicitors will request service charge accounts, management details, and major works forecasts. Provide complete and accurate information - omissions can lead to disputes with the new owner.
If there are planned major works, service charge arrears from the seller, or building compliance issues, disclose them. The new buyer will discover them; transparency prevents later disputes.
If relevant, ensure the new buyer receives a copy of any deed of covenant or undertaking. This sets out what freeholders and leaseholders can expect from each other.
If the lease contains ambiguous language, the buyer's solicitor may raise queries. Help clarify the management's interpretation and provide historical context.
BLOCK-iQ helps directors maintain compliance records, manage building obligations, and provide clear information to buyers' solicitors during conveyancing.
See how BLOCK-iQ works →Before you exchange contracts, check these 12 items in the lease. Your solicitor should cover most of these, but many buyers only discover problems after completion. Print this and tick them off.
Want to check all 12 items against your actual lease in seconds, not days? Upload it to LEASE-iQ →
Upload your lease (any age, any format). Ask a question in plain English. Get a clause-cited answer in seconds - not hours of reading.
See how it works →Not sure where you stand? Talk to us.
Buying a leasehold flat is full of hidden traps. We have seen them first-hand at Hafer Road and are happy to help you avoid them.
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