Leasehold homes take longer to sell, more likely to sell for a loss, and have a higher percentage of transactions falling through, compared to freehold properties. The legal process is more complicated, and buyers want to investigate potential issues around service charges and cladding.
Owners of leasehold homes could face an uphill battle if they decide to move on, new data has revealed. Leasehold homes take months longer to sell than freehold properties and are more likely to sell for a loss, according to data provided by estate agents Hamptons and Connells Group.
The time it takes to sell a property has been edging higher for years. Nearly one in five homes now take more than six months to exchange contracts after going under offer, compared with 13 per cent a year ago and just 5 per cent 10 years earlier. But leasehold properties that continue to account for much of this slowdown.
Not only is the legal process more complicated, but buyers want to take time to investigate potential issues around service charges and cladding. While 13 per cent of freehold properties take over six months to exchange contracts, this rises to a whopping 35 per cent of leasehold homes according to Hamptons and Connells. Leasehold ownership gives someone the right to occupy their property for a fixed period, but they do not own the building or land it is built on.
These are typically flats. The general trend has shown a worsening situation for leaseholders when it comes to finding a buyer. The typical leasehold property takes 87 days to go under offer once on the market compared to 57 days for the average freehold house, according to Hamptons. Between 2012 and 2018, it would often take a similar amount of time for a leasehold and freehold seller to find a buyer.
Leaseholders are also much more likely to be disappointed with the price their home commands. The data suggests leasehold homes are selling for 93 per cent of their original asking price on average, compared to 95.1 per cent for freehold houses.
RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP This means that the average leasehold home that goes on the market at £300,000 ends up selling for £279,000, while the average £300,000 freehold property goes on to sell for £285,300. Freehold homes also tend to work out as a much better investment in the long run. Only 6.1 per cent of freehold houses bought in the last 20 years have been sold at a loss in 2026.
That compares to 27.1 per cent of leasehold flats that have sold this year for a loss. Leasehold sales are also more likely to fall through than freehold properties, according to Connells. Last year, 37 per cent of agreed sales did not reach completion. Freehold fall-throughs stood at 36 per cent, compared with 43 per cent for leasehold sales.
This gap has widened steadily since 2019, when the two rates were within two percentage points of each other. The higher leasehold fall-through rate is largely driven by buyers rather than sellers. Last year, 25 per cent of freehold buyers pulled out, compared with 34 per cent of leasehold buyers. To make matters worse, leasehold sales are collapsing later in the process.
Freehold fall-throughs occurred after an average of 85 days, while leasehold deals fell through after 115 days. Katie Kendrick OBE, spokesperson for the National Leasehold Campaign, says: 'Across the country, leasehold homes are increasingly becoming difficult to sell, with transactions stalling, collapsing, or taking significantly longer to complete.
'Every single day, leasehold sales are falling through because of a system that is outdated, exploitative, and completely unfit for purpose. 'This is not anecdotal - it is happening at scale, and the data now supports what leaseholders have been saying for years. This is the leasehold bottleneck in action.
' Join the discussionHow should the outdated leasehold system be reformed to truly protect homeowners and buyers? What's your view? Is leasehold reform under way? Last week's King’s Speech promised 'to put an end to the unfair and outdated leasehold system,' in line with a Labour manifesto pledge.
This carries on from the Leasehold and Freehold Reform Act 2024, which received was hailed as a landmark moment - yet key measures still haven’t been implemented. The Act could make it cheaper for Britain's 5.2million leaseholders to extend their leases or purchase the freeholds of their buildings. But many leaseholders still pay onerous ground rents, face rocketing service charges and insurance premiums, and ongoing cladding issues.
Read More How Labour plunged the rental market into chaos overnight A new piece of proposed legislation, the Commonhold and Leasehold Reform Bill, promises to tackle some of these issues. The Government says it will make it easier for existing leaseholders to convert to commonhold, giving them greater control over how their building is managed and the bills they pay.
Current leaseholders will also be given the opportunity to switch to commonhold, in buildings where the majority of residents agree to it. Kendrick adds: 'Leaseholders remain at the mercy of managing agents and freeholders, held back by delays, blocked transactions, and a system that puts profit before people. Even when a buyer is ready to proceed, the system itself stands in the way.
'We are at crisis point. Leasehold is not just outdated - it is actively damaging the housing market. It is locking people in, pricing buyers out, and creating unnecessary delays at every stage of the process.
' Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.
This is Money's partner L&C can help you with its fee-free mortgage service. >Compare mortgage rates >Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.
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>Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages , which is authorised and regulated by the Financial Conduct Authority . The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Leasehold Properties Selling Time Transaction Fall-Throughs Service Charges Freehold Vs Leasehold
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