Should I Buy a Leasehold Property in the UK? What You Need to Know About Long Leaseholds

If you’re thinking about buying a leasehold property in the UK, you may have heard conflicting advice — especially around whether leasehold is ever a good idea.
As specialist property solicitors, we’re often asked:

“If a leasehold has hundreds of years left — is it really a problem?”

Here’s what you need to know about long leasehold properties, the potential risks, and what to look out for before you buy.

What Does Leasehold Mean?

When you buy a leasehold property, you own the right to live in the property for the length of the lease, for example, 99, 125, 250 or even 999 years. You don’t own the land it stands on, that remains with the freeholder.

Most flats in England and Wales are leasehold, because shared buildings need communal maintenance arrangements. Houses can be leasehold too, although this has become controversial, especially with some newer developments.

Why Do People Say “Don’t Buy Leasehold”?

There’s a good reason for the caution:

• The lease runs down over time and when it gets too short, the property can lose value and become hard to mortgage.
• You may pay ground rent, which can sometimes double every few years.
• You must also pay service charges and management fees, often controlled by the freeholder.
• Leaseholders usually need permission (and sometimes fees) for alterations or even subletting.
• There have been scandals around unfair lease terms, especially in new builds.

What if the Lease is for Hundreds of Years?

Many modern leases, especially for flats, are granted for very long terms often 999 years or over 250 years. This changes things significantly:

• You’re very unlikely to see the lease run down to a problematic length in your lifetime (or even your children’s).
• Mortgage lenders generally treat leases over 120 years as low risk.
• Resale value is usually unaffected by the lease length if the term is that long.

In the industry, these are sometimes called “virtual freeholds.”

A Long Lease Doesn’t Remove All Risks

Even with a very long lease, you still need to check the following:

• Ground rent: Is it truly peppercorn (nominal, often £0 or £1 per year)? Or does it increase periodically — and by how much?
• Service charges: How high are they? Have they risen sharply in recent years?
• Restrictions in the lease: Such as bans on subletting, holiday letting, or keeping pets.
• Management and control: If the freeholder or their managing agent performs poorly, you could face high costs and frustration.

How Can a Solicitor Help?

At Hegarty our experienced property solicitors can:

• Review your lease in detail before you buy
• Explain potential risks in plain English
• Help negotiate changes where possible
• Guide you through lease extensions or buying the freehold in future

Buying a leasehold property, even with a long lease, is perfectly normal and often makes sense. But it’s essential to understand exactly what you’re signing up for.