What does ‘short lease’ mean and why does it matter?
A “short lease” typically refers to a leasehold property where the unexpired term of the lease is less than 80 years. This is a critical threshold, as it affects not only the value of the property, but also your ability to secure a mortgage, and the cost of extending the lease in the future.
Why does the lease term matter?
Leasehold property is a wasting asset — as the lease term gets shorter, the property becomes less valuable. A lease that falls below 80 years:
- Begins to lose value more quickly.
- Becomes more difficult to sell.
- May be unacceptable to many mortgage lenders.
- Triggers a “marriage value” cost when extending (explained below).
Mortgage lenders typically have minimum lease requirements — often 70–85 years depending on their policy. If the lease term falls below their cut-off point, they may:
- Refuse to lend at all.
- Reduce the loan-to-value (LTV) they will offer.
- Require that the lease be extended before completion — which is rarely possible in auction timescales.
What is marriage value?
If you extend a lease after it falls below 80 years, you must pay an additional cost called marriage value. This represents the increase in the property’s value once the lease is extended — and half of this uplift must be paid to the freeholder by law.
This makes lease extensions significantly more expensive once the lease term drops below the 80-year mark.
Why is this especially important in auction sales?
- Auction legal packs may not include the lease term or refer only vaguely to it.
- You may not have time to obtain a lease extension or negotiate with the freeholder before bidding.
- If you buy a short lease flat, you are accepting reduced value, mortgage restrictions, and higher extension costs.
Short lease properties often appear in auctions because they are hard to sell on the open market — and may not be mortgageable in their current state.
Summary
Buying a flat with a short lease can expose you to major risks — including limited mortgage options, high extension costs, and difficulty reselling. Always confirm the lease length before bidding and understand the financial implications if the lease has less than 80 years remaining.










