diff --git a/lnbits/app.py b/lnbits/app.py
index b1dcf7b7..629d793a 100644
--- a/lnbits/app.py
+++ b/lnbits/app.py
@@ -366,6 +366,11 @@ async def restore_installed_extension(app: FastAPI, ext: InstallableExtension):
 
 
 def register_custom_extensions_path():
+    upgrades_dir = settings.lnbits_extensions_upgrade_path
+    shutil.rmtree(upgrades_dir, True)
+    Path(upgrades_dir).mkdir(parents=True, exist_ok=True)
+    sys.path.append(str(upgrades_dir))
+
     if settings.has_default_extension_path:
         return
     default_ext_path = os.path.join("lnbits", "extensions")
@@ -384,11 +389,6 @@ def register_custom_extensions_path():
     Path(extensions_dir).mkdir(parents=True, exist_ok=True)
     sys.path.append(str(extensions_dir))
 
-    upgrades_dir = Path(settings.lnbits_extensions_path, "upgrades")
-    shutil.rmtree(upgrades_dir, True)
-    Path(upgrades_dir).mkdir(parents=True, exist_ok=True)
-    sys.path.append(str(upgrades_dir))
-
 
 def register_new_ext_routes(app: FastAPI) -> Callable:
     # Returns a function that registers new routes for an extension.
diff --git a/lnbits/commands.py b/lnbits/commands.py
index 97329220..439b6164 100644
--- a/lnbits/commands.py
+++ b/lnbits/commands.py
@@ -339,7 +339,7 @@ async def extensions_update(
     if not await _can_run_operation(url):
         return
 
-    upgrades_dir = Path(settings.lnbits_extensions_path, "upgrades")
+    upgrades_dir = settings.lnbits_extensions_upgrade_path
     Path(upgrades_dir).mkdir(parents=True, exist_ok=True)
     sys.path.append(str(upgrades_dir))
 
diff --git a/lnbits/core/models/extensions.py b/lnbits/core/models/extensions.py
index abd771cd..f53daa47 100644
--- a/lnbits/core/models/extensions.py
+++ b/lnbits/core/models/extensions.py
@@ -148,8 +148,6 @@ class Extension(BaseModel):
     @property
     def module_name(self) -> str:
         if self.is_upgrade_extension:
-            if settings.has_default_extension_path:
-                return f"lnbits.upgrades.{self.code}-{self.upgrade_hash}"
             return f"{self.code}-{self.upgrade_hash}"
 
         if settings.has_default_extension_path:
@@ -343,15 +341,11 @@ class InstallableExtension(BaseModel):
 
     @property
     def ext_upgrade_dir(self) -> Path:
-        return Path(
-            settings.lnbits_extensions_path, "upgrades", f"{self.id}-{self.hash}"
-        )
+        return Path(settings.lnbits_extensions_upgrade_path, f"{self.id}-{self.hash}")
 
     @property
     def module_name(self) -> str:
         if self.ext_upgrade_dir.is_dir():
-            if settings.has_default_extension_path:
-                return f"lnbits.upgrades.{self.id}-{self.hash}"
             return f"{self.id}-{self.hash}"
 
         if settings.has_default_extension_path:
@@ -411,9 +405,7 @@ class InstallableExtension(BaseModel):
 
     def extract_archive(self):
         logger.info(f"Extracting extension {self.name} ({self.installed_version}).")
-        Path(settings.lnbits_extensions_path, "upgrades").mkdir(
-            parents=True, exist_ok=True
-        )
+        Path(settings.lnbits_extensions_upgrade_path).mkdir(parents=True, exist_ok=True)
 
         tmp_dir = Path(settings.lnbits_data_folder, "unzip-temp", self.hash)
         shutil.rmtree(tmp_dir, True)
diff --git a/lnbits/settings.py b/lnbits/settings.py
index 915eccc1..2131db25 100644
--- a/lnbits/settings.py
+++ b/lnbits/settings.py
@@ -9,6 +9,7 @@ from datetime import datetime, timezone
 from enum import Enum
 from hashlib import sha256
 from os import path
+from pathlib import Path
 from time import gmtime, strftime, time
 from typing import Any, Optional
 
@@ -859,6 +860,10 @@ class ReadOnlySettings(
 ):
     lnbits_admin_ui: bool = Field(default=True)
 
+    @property
+    def lnbits_extensions_upgrade_path(self) -> str:
+        return str(Path(self.lnbits_data_folder, "upgrades"))
+
     @validator(
         "lnbits_allowed_funding_sources",
         pre=True,