Is it worth buying a property with a short lease?

Published: Tue, 08/10/21

Hi ,

Why do some investors take a step back when offered short lease properties? Well, it's hard to get a mortgage for most of these properties and there is a limited resource of profitable short-lease properties out there.

Ever tried searching the web or driving around your city for deals? You might have come across some short-lease properties but are they really profitable? Is it still worth investing your cold hard cash in these properties?

Let’s find out!

What If You Can Find Short Leases in Prime Residential Areas?

Imagine having a property in a location as good and as well-maintained as the properties in the Wellcome Trust Estates, and The Cadogan!

It surely is worth investing in these kinds of places if its means the value of the lease extension is a relatively low LTV figure compared to the total purchase price.

Here's a quick example:

A flat with an 18-year lease is valued at £900,000
3 years later, you negotiate a 90-year lease extension in exchange for a £1,015,900 premium.
With the newly extended 104-year lease, the sale price would be £2,550,000.
Less its original value (£900,000) and cost of extension (£1,015,900), your profit would be £634,100.

This represents a 33% return which is what makes short-lease properties very attractive!

Now, the only question is where are you going to find these kinds of deals?

Here's Where Your 'Search' Gets Easier

Go to your dashboard to find buy-to-let deals in your target area. Or sign up for a free 14-day trial if you aren’t a member yet.

With Property Deals Insight, you’ll get to:

Filter your search on short term lease properties,
Further narrow your search based on your area of choice,
Identify high yield areas, and
Generate property valuation reports with insights on cash flow and ROI before you say YES to the deal.

Find Short Lease Properties NOW!

Investing in Short Leases Properties

It’s true, it’s hard to find profitable short lease properties but the good news is that there are fewer buyers competing in this area.

Now all you have to do is take advantage of our tools, and you’ll get ahead of other investors.

If you have any questions or feedback please reach out to us via email - info@propertydealsinsight.com or give us a call 02033898222.

Thanks again!