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Jason Patterson
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Recently, I had the pleasure of delivering a 40-minute presentation with CPC Finance, where I unpacked the powerful potential of investing in short lease flats—a strategy that’s too often overlooked but can deliver strong returns when approached the right way. CPC have kindly shared a blog summarising the key points from our session, and I wanted to document this on my own platform too, so that my mentees and readers can revisit and benefit from the insights I shared.
Short lease flats are typically properties with less than 80 years left on the lease. Many investors avoid them due to the perceived complexity, but that’s exactly where the opportunity lies. The discount at purchase, paired with the uplift in value once the lease is extended, can create substantial margins—whether you’re looking to sell, rent, refinance, or even restructure the asset.
Here’s a snapshot of the strategies and considerations we discussed:
🏠 Buy, Extend, Sell or Rent
A popular and proven approach. You purchase a flat with a short lease at a discounted price, extend the lease, and either sell it for a higher value or hold it as a long-term rental asset.
🔨 Refurbishment & Reconfiguration
Improving the layout and condition of the property adds even more value post-lease extension. This is especially useful for maximising sale or rental yield.
💼 Finance Options
From bridging finance and BTL mortgages to cash purchases and JV partnerships, there are multiple routes depending on your exit strategy and the property condition.
🤝 Creative Strategies
We also explored:
Assisted sale agreements with current owners
Buying the freehold and managing multiple units
Not extending the lease, but leveraging rental income on a cash buy
Sourcing direct from councils, housing associations or auctions
New Rules, New Opportunities
With the Leasehold and Freehold Reform Act now in place, investors can extend a lease immediately after purchase—rather than waiting the previous two-year requirement. This opens up faster routes to value creation and reduces the risks associated with long holding periods.
Real Numbers Matter
During the presentation, I walked through how to:
Assess the correct purchase price
Calculate the lease extension premium
Budget for reconfiguration and legal fees
Forecast the post-extension end value
Understanding and layering these numbers accurately is what separates good deals from great ones.
Building Knowledge, Building Portfolios
I believe that sharing transparent, actionable strategies like these empowers investors—especially those newer to the space—to approach their portfolio growth with confidence. Short lease flats aren’t just a niche opportunity—they’re a real lever for generating equity and cash flow when handled with care.
You can read their article here.
If you’d like to hear more about what was shared during the CPC Finance presentation or explore how you can implement this strategy in your own journey, feel free to get in touch or explore my mentoring packages.
Diverse passions plus smart strategies equal big success.
His 20+ year property journey includes a genius move: transforming overlooked short-lease homes into profitable units. From Dubai to North London, Jason proves diverse passions plus smart strategies equal big success.
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