Episode 24 - Buying and Selling Short Lease Properties

In this episode, Ruban Selvanayagam dives deep into the world of short lease properties with Jason Patterson, the Short Lease Flat Mentor. Jason has been operating in the property investing world for over 20 years, starting with flats in North London when houses were financially out of reach. Through his journey, he discovered the critical steps top follow when extending leases, particularly the "marriage value" that impacts properties with leases below 80 years. Jason shares his firsthand experience of extending leases and the strategies he’s developed, including voluntary and Section 42 notices to maximise property value. He highlights the complexities involved, from liaising with freeholders to ensuring optimum due diligence when buying short lease properties alongside tips on how to sell properties . We’ll also touch on his adaptive methods during market shifts and how he navigated through challenges like the 2008 credit crunch. Additionally, we discuss the 2024 Leasehold and Freehold Reform, its potential impact on the property market and why implementation may take up to five years due to legal challenges. Jason offers advice for sellers on extending leases to optimise property prices and shares how he scales his business through networking, direct vendor approaches, and strong partnerships with industry contacts.   #ShortLeaseFlats #ShortLeaseProperties #BuyingShortLeaseFlats #SellingShortLeaseFlats #LeaseholdandFreeholdReformAct  

LINKS (RESOURCES) REFERRED TO IN THE PODCAST

Leasehold and Freehold Reform Act 2024

Selling a Flat with a Short Lease

Follow Jason Patterson on LinkedIn

RELEVANT LINKS

Property Solvers Investor Profiling

Become an Auction Partner

Property Solvers (Sell House Fast)

Property Solvers (We Buy Any House)

Property Solvers Auctions

Property Auctions News

How to Value Your House

 

TIMESTAMPS

00:10 - Introduction of Jason Patterson and his expertise 00:22 - Jason’s greeting and start of conversation 00:56 - Jason shares his property journey background 02:25 - Challenges and strategies during the credit crunch 04:09 - Buying and extending leases experience explained 05:04 - Solicitors' role in flagging short leases 06:27 - Evaluating properties with short leases strategy 07:39 - Approach to determining lease extension costs 08:23 - Contacting freeholders and surveyors for costs 09:42 - Freeholder cooperation in providing information 10:35 - Vendor cooperation in obtaining lease details 11:13 - Steps to minimise risk when buying short leases 11:46 - Explanation of section 42 lease notice 12:34 - Process of using section 42 in transactions 13:45 - Example of simultaneous purchase and lease extension 14:42 - Importance of checking legal pack validity 15:48 - Variability in freeholder response times 16:40 - Using surveyors for lease extension negotiations 17:13 - Tips for sellers to optimise short lease sales 18:31 - Short lease property considerations for buyers 19:30 - Navigating lending challenges for short leases 20:36 - Mortgage and bridging finance for short leases 21:31 - Assessing risk and timing for lease extensions 22:37 - Overview of the Leasehold Reform Act 2024 23:57 - Main benefits of new lease