If you own a property with a short lease in Staffordshire, you may already have discovered that selling it isn’t as straightforward as selling a freehold home. In this guide, we explain what a leasehold property is, what’s considered a short lease, how it affects value and saleability, and what options you have if you need to sell.

At Jeffries Property Buyers, we regularly help sellers across Staffordshire who are struggling to sell leasehold properties through the open market due to short lease terms, mortgage issues, or time pressure.

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What Is a Leasehold Property?

A leasehold property is one where you own the property but not the land it stands on. Instead, the land is owned by a freeholder, and you are granted the right to live in or rent the property for a fixed number of years under a lease.

Leasehold properties are most commonly flats, but some houses are also leasehold.

For example:

• A flat may have been granted a 125-year lease when it was built
• That lease term reduces every year
• As the lease shortens, the value and mortgageability reduce with it

If the lease were ever to reach zero, the property would revert back to the freeholder.

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Can You Extend a Lease?

Yes — and in many cases, leaseholders have a legal right to do so under the Leasehold Reform, Housing and Urban Development Act 1993.

Under this legislation:

• You can extend your lease by 90 years
• Ground rent is reduced to a peppercorn (effectively £0)

To qualify:

• You must have owned the property for at least 2 years
• The original lease must have been granted for 21 years or more

Extending the lease can significantly increase the value of your property — but it does come at a cost.

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What Is the Lease Extension “Premium”?

When extending a lease, the freeholder is entitled to a payment known as the premium.

This is calculated based on:

• Remaining lease length
• Ground rent
• Property value
• Service charge terms

Once a lease drops below 80 years, the calculation changes and includes something called marriage value.

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What Is Considered a Short Lease?

Generally, a lease is considered short when it falls below 80 years.

This is a critical threshold because:

• Marriage value becomes payable
• Lease extension costs increase sharply
• Mortgage options reduce dramatically

Marriage Value Explained (Simple Example)

• Property value with a 55-year lease: £55,000
• Property value after extension: £95,000
• Increase in value: £40,000

The freeholder is entitled to 50% of that uplift (£20,000) as part of the premium.

On top of this, you should expect:

• Legal fees (often around £1,200+)
• Valuation costs
• A process that can take 3–12 months

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Negotiating Directly With the Freeholder

Instead of serving a formal Section 42 Notice, some leaseholders choose to negotiate informally.

This can result in:

• A high upfront premium with reasonable ground rent
• Or a low upfront cost but high ongoing ground rent and service charges

⚠️ Be careful. While a low premium can look attractive, high or escalating ground rent can:

• Reduce investor appeal
• Reduce rental yield
• Make the property harder to sell later

Always take proper legal advice before agreeing to informal terms.

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How Does a Short Lease Affect Mortgages?

As the lease shortens:

• Fewer lenders are willing to lend
• Specialist mortgage products may be required
• Interest rates are often higher
• Lower loan-to-value ratios apply (bigger deposit needed)

This significantly reduces the number of buyers who can proceed — which is why many sellers look at cash buyer options instead.

👉 Learn more here: Sell Your House for Cash

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Should You Ever Let a Lease Run Down?

In some cases, yes — for example:

• Long-term landlords focused purely on rental income
• Retirees confident the lease will outlast them
• Owners with no intention to sell or pass the property on

However, for most people, extending before the lease hits 80 years is financially the smartest move — if time and money allow.

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Selling a Short Lease Property – Your Options

Option 1: Extend the Lease First

This usually achieves the best market value, but:

• Takes time
• Requires upfront capital
• Involves legal complexity

Option 2: Sell With the Short Lease in Place

It’s absolutely still possible to sell — but:

• Buyers must wait 2 years before extending
• Mortgage options are limited
• Sale price will reflect the risk and cost

This is where many sellers turn to experienced problem property buyers rather than traditional estate agents.

👉 See how this works: Problem Property Buyers

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Selling to a Professional Cash Buyer in Staffordshire

At Jeffries Property Buyers, we regularly buy short-lease properties across Staffordshire.

Because we:

• Don’t rely on mortgage finance
• Understand lease extension costs and risks
• Buy directly with cash

We can:

• Make a realistic cash offer
• Complete in as little as 2 weeks (or longer if needed)
• Keep the process simple: one call, one viewing, one offer

If you’re unsure whether your property qualifies, our We Buy Any Property page explains the full range of properties we purchase.

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Final Thoughts

A short lease doesn’t mean your property is unsellable — but it does mean you need the right route to market.

If extending the lease isn’t viable due to time or cost, a direct sale to a specialist buyer can provide certainty, speed, and peace of mind.

👉 To learn more about who we are and how we help sellers in complex situations, visit our About Jeffries Property Buyers page.

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