Using Property Filter to find properties with short leases is an effective strategy for investors looking to leverage the potential value increase from extending leases. This approach is particularly useful for leases under 80 years, where marriage value impacts the cost of extending the lease. Here’s how you can use Property Filter for this investment strategy:
Creating a Lead Generator:
Log into your Property Filter account and navigate to 'Lead Generator'.
Select 'Add New Leads Generator'.
Enter the postcode of your target investment area, like 'L1' for Liverpool, and select relevant neighbouring postcodes to expand your search.
Selecting the Short Lease Strategy:
Choose the 'Short Leases' strategy, which focuses on leasehold houses or flats with less than 80 years left on the lease.
Name your lead generator (e.g., 'LVP Short Lease') and click 'Save'.
Refining Your Search Criteria:
Edit the lead generator settings to refine your criteria.
For a focus on flats, deselect houses and bungalows.
Set a minimum and maximum number of bedrooms and price range as needed.
Exclude new builds, retirement homes, care homes, listed buildings, and auction properties to narrow down your search.
Using Advanced Filters:
Be cautious with advanced filters. Adjust the 'Remaining Years' under 'Registered Leases' to target properties with less than 70 years or as low as 5 years, depending on your strategy.
Avoid over-filtering with amenities and keywords to ensure a broad enough search.
Reviewing Your Leads Inbox:
After refining your criteria, review the properties generated. Look for signs of motivated sellers, such as price reductions or properties back on the market.
Analyse each property’s lease details, such as the remaining years, to assess the potential for lease extension and the associated costs.
Contacting Property Owners:
For properties listed with platforms like Purplebricks, consider contacting the property owner directly to discuss potential deals.
Utilizing Property Filter Resources:
Explore tutorial videos in the Property Filter success base for additional guidance.
Schedule orientation or success calls for more insights into using the platform effectively.
Consider booking one-to-one support with a Property Filter accredited coach for personalized assistance.
By using Property Filter for short lease properties, you can identify potential deals where extending the lease could significantly increase the property's value. This strategy requires understanding the costs involved in lease extensions and the legal complexities of dealing with freeholders. Good luck with your property investment endeavours!