Buying a flat? Learn why lease length, ground rent and service charges are crucial, how they affect mortgages and resale, and how Mortgage Brokers Near Me can help you buy with confidence.
Aug 6, 2025
Buying a flat can be a great way to get onto the property ladder, especially in city centres where houses are out of budget. But flats come with their own set of rules, costs and potential pitfalls that first-time buyers often don’t realise until it’s too late.
I’m Will Sharman, a UK mortgage broker who’s helped hundreds of buyers – from first-timers to seasoned investors – purchase flats across the country. In this guide, I’ll break down the key things you need to look out for, explain why lease length, ground rent and service charges matter so much, and share tips from real clients we’ve helped at Mortgage Brokers Near Me.
Unlike most houses, flats are almost always leasehold. This means you own the property itself but not the land it sits on. Instead, you buy the right to live there for a set number of years – the length of the lease. With a leasehold flat, you’ll also pay ground rent to the freeholder and service charges for upkeep of communal areas.
These costs and restrictions can affect:
"A short lease isn’t just a legal detail – it can block mortgage options and scare off future buyers. Knowing this upfront can save you thousands later." – Will Sharman
The lease length tells you how long you have the right to live in the flat. Most start at 99, 125 or even 999 years, but they reduce over time. Once a lease drops below 80 years, two big problems appear:
If you decide to extend the lease, it’s rarely free. Lease extensions can cost thousands (sometimes tens of thousands) and the shorter the lease, the more expensive it gets. It also takes time – often several months – which can delay your plans.
Example: We helped a buyer in Reading who found a flat they loved with 78 years left on the lease. The lender required at least 85 years, so we advised negotiating with the seller to extend the lease as part of the purchase. It added £10,000 to the cost, but without it the flat would have been difficult to mortgage or sell later on.
Tip: Always check the lease length early and ask your solicitor to confirm. If it’s short, negotiate a price reduction or have the seller extend it before completion.
Not sure if the lease length is a deal-breaker? Speak to Mortgage Brokers Near Me – we review lease terms every day and can tell you straight away how it will affect your mortgage options and future resale value.
Ground rent is the payment you make to the freeholder for the land your flat sits on. It can be as low as £1 a year – or hundreds. The biggest problem? Some leases have escalating ground rent clauses, where the amount doubles every 10 years.
Lenders are increasingly cautious about flats with unfair ground rent terms, and buyers often face difficulties selling them later.
Tip: Ask:
At Mortgage Brokers Near Me, we review these clauses upfront and flag anything that could cause issues with lenders or future buyers.
Service charges cover maintenance of communal areas – things like cleaning stairwells, garden upkeep, lift maintenance and building insurance. Costs vary massively: some are a few hundred pounds a year, others can reach thousands (especially in developments with gyms or concierge services).
Always ask:
Example: A client we worked with in Birmingham loved a flat but discovered the service charge included a hefty annual fee for a private gym they never planned to use. That information changed their budget – and their offer.
You’ll either deal with:
Poor management can lead to disputes, unmaintained communal areas and unexpected costs. Ask current residents if possible – they’ll give honest feedback.
Leasehold flats often come with rules: no pets, limits on subletting, or even restrictions on putting up satellite dishes. If you have plans to rent the flat out or renovate, check if the lease allows it – and get any required permissions in writing.
Mortgages for flats work similarly to houses, but lenders take extra care with:
An independent broker like us can help find lenders who are comfortable with your specific situation and flag any potential issues before you apply
Do I have to pay ground rent and service charges?
Yes, almost all leasehold flats require these payments. They’re ongoing costs, so include them in your budget.
Can I get a mortgage on a flat with a short lease?
It’s possible, but most lenders want at least 70–80 years remaining. You may need to extend the lease.
What is a sinking fund and why does it matter?
It’s a reserve fund used for major works like roof repairs. A well-funded sinking fund can prevent sudden large bills.
Are flats harder to sell than houses?
Sometimes – especially if service charges are high, ground rent is escalating, or the lease is short. But well-managed flats in good locations can be very desirable.
"Ground rent and service charges often catch buyers off guard. We break them down clearly so you know exactly what you’re signing up for." – Will Sharman
Flats can be a smart move – but only if you understand the costs and risks upfront. At Mortgage Brokers Near Me, we review leases, ground rents and service charges before you commit, and we match you with lenders who understand your situation.
Get free mortgage advice today – or call us to talk through your flat purchase.
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Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
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