How can leaseholders potentially increase the value of their leasehold property?

Extending the lease and renovating the property can significantly increase the value of a leasehold property for several reasons.

Firstly, extending the lease can enhance the property's marketability. A lease with a longer term is generally more attractive to potential buyers, as shorter leases can create uncertainty about the property’s future and potentially decrease its value. This is particularly important in the property market, where a lease nearing its end can lead to significant depreciation in value. By extending the lease, leaseholders can reassure future buyers about the longevity of their investment, thereby justifying a higher sale price.

Secondly, renovations improve the physical condition and aesthetic appeal of the property, making it more desirable to buyers or tenants. Upgrading kitchens, bathrooms, and other spaces within the property not only elevates the quality of living but can also bring the property in line with current market standards and trends. Well-renovated properties often command higher rents and sale prices, as they can entice buyers who are looking for move-in ready conditions.

Together, these factors create a stronger investment profile for the leaseholder, leading to an overall increase in value for the leasehold property.