29/08/2026
How to make profit from any leasehold property:
The core rule is simple: buy when the remaining term is short and undervalued, then extend the lease to increase value faster than your total cost.
The rational ratio principle:
- Compare the price of the short lease property against the cost of extending it, legal fees and ground rent.
- Only proceed if combined cost is significantly below the market price of a similar property with a long lease.
Example:
Purchase price: £120,000 for a property with 65 years remaining
Lease extension and all fees: £25,000
Total investment: £145,000
Market value after extension: £180,000
Profit margin: £35,000
You profit because you secure the discount that comes with short lease risk, then remove that risk to unlock full value. This applies to flats, houses and commercial leasehold property alike.
