9 min read
Thinking about buying a flat? From leases and service charges to mortgage rules and management companies, our expert guide breaks down everything you need to know before making an offer.
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Flats can be a great choice, especially for solo or first-time buyers looking for city living. They’re often more affordable than houses and, if you want to live in a city centre, generally much easier to come by. However, there are important legal, financial and practical factors you need to understand before making an offer. Our guide will take you through everything you should know when buying a flat in the UK.
In this guide:
There are several important differences between purchasing a flat and buying a house. These can have a big impact on owners and understanding them will help you decide which is right for your lifestyle and budget.
The main difference is that most flats are sold as leaseholds, while most houses are freeholds. Buying a leasehold means that you own a property for a set number of years, but not the land it sits on. This impacts:
Additional leasehold costs: You’ll usually need to pay ground rent and service charges to the freeholder or management company. Management companies may also impose extra admin fees for tasks such as updating records or providing documents to mortgage lenders. These fees can add hundreds of pounds to your moving expenses, and the unpredictability can make budgeting harder.
Dealing with third parties: In addition to the seller and their solicitor, you may also need to deal with the freeholder or a management company, which can make the buying process more complicated and longer.
Communal spaces and responsibilities: As part of your contract with the freeholder, leaseholders are usually required to follow certain rules. These can include, maintaining the inside of your flat, requesting permission for pets or renovations, contributing to building repairs and being considerate of neighbours.
Find out more about the differences between leasehold and freeholds.
Often more affordable: Lower purchase prices and deposits make flats attractive for solo buyers or first-time buyers.
Central locations: Flats are often in city centres, close to shops, transport and nightlife.
Lower maintenance: In most flats, the freeholder or management company takes care of structural repairs and communal areas, saving you time and effort compared to owning a house.
Security and extras: Flats often have additional security measures with gated access, intercoms and on-site security. You may also get access to shared amenities like gyms, outside space, and bike storage.
Less space: Flats typically have less living space than a house and no private garden. You also can’t extend to add more room as you could with a house.
Mortgage restrictions: Some mortgage providers are cautious about lending for flats, specifically new-builds, flats above shops or leaseholds with short leases, so it can be harder to get a mortgage for these types of flats.
Noise and privacy: Living in close proximity to neighbours can mean less peace and quiet.
Slower resale: Selling a leasehold flat can take longer due to additional legal checks, third-party involvement, and lease terms that buyers’ solicitors must review.
When buying a flat you should factor in the following costs:
Mortgage fees: Fees for booking, arrangement, and valuations can total around £2,000 to £3,000. You may be able to add these to your mortgage instead of paying upfront, but doing so will increase the total interest you pay over time.
Conveyancing fees: Conveyancing for a purchase usually costs around £1,200 to £1,900. If you’re also selling a property, fees can double.
Leasehold fees: Legal fees when buying leasehold flats are typically £250 higher due to extra work. You’ll also pay ground rent (£0–£1,000) and service charges, which vary by property.
Stamp Duty Land Tax: First-time buyers start paying stamp duty on properties over £300,000, meaning if the flat is less than this, you will be exempt. If you’re not a first-time buyer, the threshold starts at £125,000 and if it is not your main residence, the rates are higher. Use our stamp duty calculator to work out the exact amount you would pay for your flat purchase or read our article to find out more about what stamp duty is and the various thresholds and rates.
Home buyers survey: RICS Home Survey Level 2 are usually recommended for conventional flats in a reasonable condition, costing between £400-£1,000. Find out more about home buyers surveys or get a home survey quote for your flat purchase with our trusted partner The Moving Portal.
Insurance: Buildings insurance may be required by your mortgage lender, and contents insurance is your responsibility. Find out more about buildings and contents insurance and get a quote from our trusted partner One Click Cover today.
Find out information, see our in-depth guides on conveyancing fees and the costs of buying a house.
Getting a mortgage on a flat is based on many of the same criteria as with a house: eligibility, deposit amount, affordability. However, lenders often apply stricter criteria to flats, which can make securing a mortgage more challenging.
Key considerations include:
Flats with a short lease: If the lease has fewer than 80 years remaining, most lenders will be cautious, as extending a lease can be very expensive, potentially costing thousands.
Property type: Lenders often apply stricter criteria to new-build flats, flats above commercial property, and to flats that are five storeys or more.
Ground rent and service charges: Lenders review these ongoing costs when assessing affordability and may be unwilling to lend if they are uncapped or unusually high.
Freehold flats: Although these are rare in the UK, most mortgage providers won’t lend to them due to unclear maintenance responsibilities.
Lenders treat flats differently to houses because there are more factors such as the above, which make them a higher lending risk.
However, flats are still a very popular and common choice for buyers, and there are many mortgage providers that will lend as long as the property meets their criteria.
If you’re unsure, you should speak to a financial adviser who will let you know your options.
As with house purchases, there are government schemes, such as Lifetime ISA and shared ownership, that can help finance your flat purchase. Find out more in our guide to first time buyer schemes.
As with any property purchase, there are lots of things to consider before you commit. You may question the practicality of being up one or more floors, whether you need a lift, what communal spaces there are and the refurbishments you’re allowed to make to your home. You’ll also need to find out about things like leases, service charges and ground rent.
Here are some of the most common questions people ask before buying a flat:
With a leasehold property, you're effectively buying the right to live in that property for a set amount of time, which can be anything up to 999 years. As time moves on and the lease changes hands, its value reduces. It’s vital you know how long is left on the lease - this should be in the property listing, and your conveyancer will also check it for you.
Mortgage lenders often require that properties have at least 80 or 70 years left on their lease. If you buy one with less than 80 years of lease remaining, you may find it challenging to sell in 5 to 10 years' time. Extending a lease can cost several thousand pounds and take many weeks to manage, so if the lease is running out, you should consider negotiating an extension before you buy.
You can read more about how to extend a lease in our article.
We'd advise asking the estate agent or seller if there are any specific restrictions that could significantly impact your lifestyle. For example, some flats may prohibit the ownership of pets or restrict noise levels, such as not allowing music to be played after a certain time.
There can also be restrictions on modifications to the property such as removing carpets, knocking down internal walls or updating the windows and doors. Often, making alterations isn't as straightforward as it seems; you might need to secure written consent from the landlord or freeholder before proceeding with any significant works.
These types of restrictions are not always immediately apparent, so if you decide to purchase a flat it is advisable to have your conveyancer double check whether there are any such limitations that would prevent you from enjoying activities or making changes that are important to you.
Ground rent is the regular payment a leaseholder makes to a freeholder for the right to occupy the property. It may be as little as £1 a year, but can be much more, and it’s payable either annually, twice a year or quarterly. It can be fixed or escalating, which makes it one of the most crucial things to look out for when buying a flat. You don’t want to get stuck with ground rent that increases by huge amounts, as this can become very expensive and cause you a headache if you want to sell your home.
Service charges are an essential aspect to consider when moving into a new property, as they can significantly impact your budget. These charges can cover anything from simple maintenance to gardening tasks, concierge services, and swimming pool upkeep. Service charges vary depending on the building and location. For standard flats outside London, they typically range from £1,000 to £3,000 per year. In high-end London developments, charges can reach £10,000 to £15,000, and in rare cases, even £20,000.
Knowing the details of these service charges helps ensure there are no surprises after you move in. Ask the property management for a detailed breakdown of the service charges and enquire how often these costs are reviewed and adjusted. This will give you a clear picture of the ongoing expenses and help you budget accordingly.
Additionally, it’s worth checking if there’s a sinking fund on the building you’re interested in. This is a reserve fund that’s been collected to cover any planned or unexpected works. The existence and status of such a fund can be especially important in older buildings where significant repairs might be necessary.
It’s important to understand who you’ll be interacting with regarding your flat, the building and the lease. You’ll be dealing with these people regularly, paying service charges to them and asking them to fix any issues that arise. Therefore, knowing whether you'll be working directly with a professional management company or an individual landlord is essential. This knowledge will help you manage expectations and prepare for the type of communications and transactions you might expect throughout your time in the property.
Signing a lease (as part of your leasehold flat purchase) means you enter a contract that determines things like responsibility for maintenance issues, the fees payable to the freeholder and permission to make changes to your property.
Your service charge may not include the cost of major repairs, such as the roof, so find out before buying who would be responsible for such costs and how they’d be shared. There may also be restrictions on alterations – check with your solicitor what your lease allows.
When buying a flat, you’ll need a conveyancer, or conveyancing solicitor, to handle the legal work. Their job is to make sure the purchase is legally sound, your interests are protected, and the transaction runs smoothly.
A conveyancer will:
Review contracts and documents: Checking the draft contract, title deeds, and other paperwork to make sure there are no issues.
Order searches and raise enquiries: They’ll order the necessary property searches to identify potential risks such as planning permissions, local authority issues, or restrictions, and raise any enquiries with the sellers’ solicitor.
Liaise with your mortgage lender: Making sure all conditions are met so funds can be released on time.
Arrange the transfer of funds: Handling deposits, ensuring the seller is paid correctly on completion and paying stamp duty (if required).
When buying a flat, there are extra tasks your conveyancer will complete, including:
Reviewing leasehold information: Checking the terms of the lease, how many years remain, and whether clauses could affect your mortgage or resale.
Dealing with the freeholder or management company: Confirming ground rent, service charges, insurance arrangements, and any restrictions (such as property modifications or pet ownership).
Highlighting future costs and responsibilities: Ensuring you understand your share of repair costs for communal areas, as well as any rules you must follow.
Checking compliance with the Building Safety Act (BSA): For flats that are five storeys or more, your conveyancer will have to check whether the property is affected by the BSA and make sure all necessary safety information and certificates are provided. Find out more about buying a high-rise flat.
By handling these checks, your conveyancer makes sure there are no hidden surprises, giving you confidence that your flat purchase is secure and fully understood before you commit.
Whether you've found a flat you want to put an offer on, or you're still looking for the one, see how much your move could cost in just seconds.
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Buying a flat can be a good investment in the UK, however it depends on factors such as the location, lease terms, your long-term plans, and the current market demand. Flats in central locations near local amenities and good transport links are often in strong demand with renters and tend to hold their value well, making them attractive for both buy-to-let investors and first-time buyers.
However, leasehold terms, ground rent, and service charges can affect how profitable or appealing a flat is as an investment. Short leases or high charges may reduce resale value or limit your mortgage options.
If you’re considering a flat as an investment, it’s important to:
Look for desirable areas with strong demand.
Check the lease length (ideally 100+ years remaining).
Understand all ongoing costs.
With the right factors, flats can provide a more affordable entry point onto the property ladder and, in some cases, a solid long-term investment.
You should look to have a lease with over 80 years left on it, as getting a mortgage with a lease shorter than this is harder. Since 31 January 2025, leaseholders can extend their lease as soon as they own the property, thanks to the Leasehold Reform Act 2024. Previously, you had to wait until you had owned the property for two years. Find out more about the leasehold reform.
It’s possible, but more difficult. Most lenders are cautious if the lease has fewer than 80 years remaining, as extending it can be expensive. Some lenders may refuse altogether.
Ultimately, service charges vary from property to property. For standard flats outside London, you can typically expect to pay between £1,000 and £3,000 per year. In high-end London developments, charges can exceed £10,000 annually.
Yes, you can buy a share of the freehold, along with the other leaseholders in your building - this is known as Collective Enfranchisement. Find out more about buying the freehold of a flat.
This is mainly dependent on the market conditions at the time of buying and selling. Flats can increase in value however it’s usually at a slower rate than houses. One of the reasons for this is that flats are usually sold as leaseholds, and the longer you own it, the shorter the lease gets, which makes the value drop, unless you extend the lease which can be expensive. With this being said, popular rental areas in central locations and near local amenities often see steady growth and are usually in demand to buyers and investors.
Lenders often apply stricter rules to flats than houses, so it can be harder to get a mortgage on a flat, especially for high-rise flats, flats with short leases, or flats above shops. However, many buyers still get flat mortgages successfully every year.
Yes. Mortgage lenders will review ground rent and service charges as part of their affordability checks. If these costs are very high or uncapped, it could limit your mortgage options.
This depends on how you own your flat. If you’re a leaseholder, it’s likely that your freeholder has to cover the buildings insurance for the whole building. If you are a joint freeholder, you are collectively responsible for buildings insurance.
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