The £58,500 short lease option.

What the example shows.

Neil purchased this property before auction in 2026. The teaching material records a £58,500 purchase and an estimated £120,000 sale value.

The £61,500 difference is the arithmetic gap between those two figures. It is not a realised profit and does not include purchase costs, funding, works or the cost of addressing the lease.

Why the lease matters.

A low purchase price can reflect an issue that needs specialist investigation. A buyer should establish the remaining lease term, relevant lease obligations, the options for dealing with the lease and the implications for funding or resale.

Those questions should be checked against the actual documents with a solicitor. An estimated sale value does not resolve the legal position.

How to use this example.

Start with the price and supporting evidence, then work through the costs and unresolved questions. A property needs to make sense for your own budget, funding and strategy.

Historical example. Estimated values and comparables are not a guarantee of returns. No realised profit is stated.