short lease property investment UK
Short lease is pure arbitrage. A 75-year lease is worth 30-40% less than a 125-year lease. Buy below that discount. Extend to above it. Sell. The difference is yours, and it's yours because most investors don't understand the math.
Buy 20-30% Below Market Value
Only buy leases under 85 years if extension costs are under 25% of purchase price. Any higher and you're betting on market appreciation, not the extension arbitrage itself.
Extend Lease, access Instant Equity
Get a lease valuation specialist's opinion before you bid. Don't guess. Professional valuations cost £300-500. Missing the mark by £20k makes the whole deal negative. Spend the money.
Refinance and Recycle Capital
Extended leases refinance more easily. Once you've extended to 125+ years, your property looks like a standard freehold to lenders. You can refinance to an interest-only portfolio mortgage or sell with a fat margin.
Find leasehold properties with short leases. Motivated sellers often don't know what a short lease is worth. Our data and networks surface these opportunities. You buy when the market hasn't priced the problem in.
Model extension costs and residual value. Extending a lease costs money. Our calculator shows you: purchase price + extension cost + holding costs vs projected post-extension value. Is it a 20% flip or a 40% flip?
Track your lease extension timeline. Formal vs informal negotiations, cost estimates from specialists, conveyancer handoffs. Our pipeline software keeps you on schedule so you execute before your holding costs eat the profit.
Rachel P. - Short Lease Specialist, 12 Properties Completed
Find short lease properties below market
Target leases 65-85 years. Most investors avoid them. Prices drop 30-40% vs equivalent freehold or long lease. This is your entry point.
Model the extension cost and profit
Get a professional valuation and a surveyor's estimate of extension costs. If the math shows 20%+ profit after all costs, move forward.
Extend and refinance
Negotiate with the freeholder. Use a specialised solicitor. Once extended, refinance or sell. Your equity is unlocked. Reinvest the profit into your next deal.
How much does a lease extension cost? Typically 20-40% of the property value depending on the remaining lease length and ground rent. A 70-year lease costs more to extend than a 85-year lease.
How long does a lease extension take? 3-6 months for formal negotiations. Some freeholders are quicker. Some drag. Budget 6 months to be safe.
What's the minimum lease to buy? 65-70 years. Anything shorter and you're fighting expensive enfranchisement costs. 80+ years is safer but less profitable because the discount is smaller.
Can I extend before I buy? In some cases, yes. Serving notice before completion can work. But usually, you buy, then extend. Talk to a specialist solicitor.
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