Flats OR Houses Investment? | Property Investing for beginners | Flat or House For Buy to let UK?

Are Flats or Houses best for UK Buy to Let Property Investors beginning their property investing journey? BTL Basics question asked time and again by beginners starting out in property investing. In this video Ranjan breaks down leasehold, freehold and share of freehold ownership and explains which is best for property investors depending on where in the UK you are investing.
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Chapters:
00:00 | Introduction
01:13 | Definitions
03:33 | Profitability
10:42 | Ticking Time Bomb
15:37 | Alterations
19:08 | Permissions
22:13 | What To Buy?
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[@ranjanbhattacharya-succeed7617]

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[@RM-kp8oh]

Awesome, I have been self researching these for so time. You gave an assurance to the information I got :)

[@arvinjeboo1737]

Great video Ranjan as always. Informative, comprehensive, explaining the differences between freehold and leasehold and most importantly clear advice on next steps for share of freeholds or leaseholds.

[@alps4391]

Ranjan, I’ve always been a huge fan of your work. Your content Is so educational and I really do owe a lot of my success to you, my years of hard work wouldn’t have materialised with out your videos. Very rare successful gurus share their knowledge and key to wealth for FREE. keep up the good work!!

[@mpplsknight5494]

Great video, hit the nail on the head with the differences between flats & houses. Like you say, as soon as you really understand property you will never own a leasehold flat again, but unfortunately a lot of investors have to find this out the hard way!

[@ranjanbhattacharya-succeed7617]

Well said!

[@jasonthomas269]

Just true, investor have to find it the hard way because of wrong investing and ignorance, just like my self finding it the hard way until I met Mr Thomas, I really appreciate sir

[@lolitapitpong3826]

Some houses Have 999 year Leases

[@martinajohn1925]

Incredible video. Love all of your content Ranjan! Keep it up!👍🏽

[@keithstewart511]

good stuff. well explained. commercial property sounds good.

[@shanor1769]

As usual, amazing information and advice. Thank you

[@jamesmacintyre614]

For me buy what you can afford .buy and hold refinance and repeat 👍

[@FrugalFinance]

Hi, as a managing agent and property developer with half a dozen leasehold properties in the south east I think I have a fair few counter arguments for some of your points. Perhaps you would be interested in a calibration with a small KZbinr and have a pod cast style open debate about things - maybe I can win you around a bit more 😂

[@LM-oz5cw]

Thank you, very informative video.

[@clintonm2079]

Amazing content with so much depth thank you 🤩💎🙏🏾

[@ranjanbhattacharya-succeed7617]

thank you

[@Hiprich]

Master teacher 👏🏿👏🏿👏🏿

[@paulomoteso]

Best video so far on this topic! Great job Ranjan🙌

[@ranjanbhattacharya-succeed7617]

Much appreciated

[@vikeshjodha8745]

Nice and clear explanations 😎

[@dineshhirani2336]

What are your views with flats with a 999 year lease? You never touched on these

[@19grand]

There are houses that dont appear to be freehold. Some have found themselves in a terrible situation particularly with newer properties.

[@ambroseraj1824]

Thanks Ranjan, good advice on share of freehold for flats. Trying to get in BTL so need your advice. 🙏

[@LadyMelds]

I wish I knew you 20 years ago. You make so much sense. I was totally blind when I brought my leasehold flats. I made the mistake. 😞 I will not buy flats ever again. I am glad I have the knowledge to pass on. 😉 BTW... I love your videos.

[@anthonydear4708]

Your videos are always informative and clearly explained.

[@ranjanbhattacharya-succeed7617]

Glad you think so!

[@talagurazzz8479]

Thank you sir great video

[@Bestofthebest383]

Service charges is the money eater

[@RajuAhmed-ll6ed]

Great video👍 Will appreciate if you could kindly shed some light on Asbestos, who is responsible if it’s inside the flat- freeholder or leaseholder? THANK YOU!!!!

[@JwiseTheRealist]

4:10 For some strange reason one of my 2 flats in Northampton the annual ground rent is £10 ... but I'm not complaining

[@millicentedith596]

Great video. Thanks alot

[@ranjanbhattacharya-succeed7617]

Glad you liked it!

[@doug2279]

Also with lease you have many rules eg min rental period 6 months ie no airbnb, no lodgers, no HMOs ect ect ect. Also with leases its it 78 years or so not 70 years you must worry about as under like 78 years you have expensive extensions and also freeholder can try and impose a groundrent and negotiate

[@romano11j]

Excellent as always. You must be doing well cos the special effects are improving exponentially! I vote for a T-Rex in the next one!

[@ranjanbhattacharya-succeed7617]

Thanks! Does that mean you didn't spot the T-Rex in our 'Help To Buy | 95% Mortgages Explained' Video??

[@romanoleika4585]

@@ranjanbhattacharya-succeed7617 oh shit...🤦🏼‍♂️ lol

[@kmandrews_]

Very nice 👍 video

[@phalimmaguire6069]

great video

[@thepropertynoobs9089]

We always said we were going to invest in houses. Saved up a deposit and a deal on a flat comes along 🤦🏼‍♂️😅 Hopefully it works out. Cheers for the video.

[@louisvuitton56]

good luck with the unfixed service charges

[@Buymycourse2day]

I am on the market for a property to invest in, I’ve found a shared ownership leasehold flat that actually works wells: if I decide to live in it myself with another person. It will make my cost of living cheaper so I can save more, but it does make me think If I’m getting ahead of myself... my idea was to rent out the flat fully after Iiving there for a while. Sounding like a hassle since I need to watch out for BLT/HMO restrictions before buying.

[@ranjanbhattacharya-succeed7617]

shared ownership means you are restricted in options on what you can do with the place. Also have to pay partial rent for the proportion you don't own, and when you sell you give up a share in the value uplift. The new 95% mortgage is better! See kzbin.info/www/bejne/paLcmWaVftCim7M

[@adielstephenson2929]

What's this "maintAINance costs"? Does he mean "MAINTenance costs"?

[@jimboyuk1]

Would be good to see you do a video on given the current.climate is BRRR still.valid? With house prices running ahead od.themselves and so many investors chasing properties that need doing up, finding brrrr deals that still stack up seems increasingly difficult to find.

[@ranjanbhattacharya-succeed7617]

Great suggestion! Will be doing very shortly...

[@ianh9871]

I think we are in for some trouble with older properties, to meet the Paris climate accord agreements UK has signed up to we will have to significantly increase energy performance, which will be expensive, with PVC windows and condensing boilers done in most homes, there are going to be retrofit insulation etc. Govt will increase EPC minimum standard for rented homes.

[@ranjanbhattacharya-succeed7617]

Very good point. That will mean Section 20 major works bills for leaseholders

[@paulgriffin2790]

Cant find anywhere to contact you Ranjan, but I registered for the Sunday webinar, and when I clicked on the link (tried various, 2/3 times) I was told I should not go to that site, as it was dangerous, due to some kind of virus?! It doesn't happen with any other site, but I thought you should be aware of this. I just hope I can watch the webinar on some other occasion.

[@lilianc1550]

Hello. Thanks for the video. Do you still recommend buying house only with the removal of ground rent?

[@jamescaley9942]

Self managed leaseholds can be efficient. The problem with leasehold service charges is you are not just paying for the service, you are paying a managing agent to arrange it. They could be awarding contracts to their mates or getting kick backs.

[@ranjanbhattacharya-succeed7617]

Exactly. That more or less doubles the bill

[@ruinunes8251]

You are entitled to get a few quotes, don't you? And choose the one you want?

[@richardwhite1120]

Do you have a view on buying a property, either a flat or a house, with a tenant in situ?

[@robsweatherchannel]

How about a freehold Flat? Is it profitable and would you go for this I am going for one which is 30k but valued at 45k

[@DavidSmith-hj1eq]

Ranjan you didn't mention Leasehold flats that have RTM

[@atulgupta7672]

have one residential property and if I make that let to buy and buy another residential property. Do I have to pay 3% surcharge in the new residence property that I buy?

[@vivianlee2590]

I want to have the opinion on: in general is it easier to motivate a group of SOFH neighbours to look after the building and share the cost or would the freeholder be more motivated to sort things out? Also, I have been looking at quite a few 999 year lease with a peppercorn ground rent. Which was kind of good... but some of these have the problems of an absent landlord 20-30 years down the line. Though there aren’t problems for high ground rent or renewal, I worry there will be problems like no one seemed to be managing the communal area, and the risk that no one knows who should fix the roof and how the cost should be shared, etc. I am not sure to what extent am I overly worried about the absent landlord, lack of management, and potential drop in value of the flat? Do the leaseholder have the right to get together and sort things out for themselves if that happens? I also saw a flat with an indemnity policy written up because of the absent landlord (to avoid the backdating of ground rent and service charge if the landlord reappear.) It’d be good if Ranjan can explain a bit about indemity policies in future videos? I was also wondering if I bought that flat, if I want to sell it a few years down the line and the landlord is still absent, will I then have to write an indemnity policy to the next buyer, and will I be liable to that liability? Thanks.

[@FrugalFinance]

Really good post. I do this sort of thing for a living abs have offered a call with him so that I can assist with some points on leasehold, some of which you touch on. Hopefully he can accommodate as I feel it would be useful to add some details / context to some of the leasehold issues touched on in the video

[@ranjanbhattacharya-succeed7617]

Absentee freeholders and freeholds which have 'reverted to the crown' are a whole different ball game, and subject for a separate video. It will be quite hare to get a mortgage on a flat with no freeholder present. When looking at SOF, look for well managed blocks. Often a management company is hired rather than relying on residents to do bits and pieces in their spare time. This is best for consistent upkeep of communal areas. As mentioned, in video, if buying leasehold, ensure length remaining on lease is decent (ie 100+ years), service charges are low, ground rent (and mechanism for increasing ground rent is reasonable), and there are no Section 20 major works bills due or imminent.

[@vivianlee2590]

@@ranjanbhattacharya-succeed7617 Thanks 🙏🏼 :)

[@gosskamperis2016]

Gotcha :) Hey Ranjan, Another excellent video but just to prove (as always) that I was hanging on to your every word, I think you mis-spoke at minute 3:10 :)

[@ranjanbhattacharya-succeed7617]

Well spotted. Meant to say 'leasehold houses' !!!

[@randomrobz5285]

Hi Ranjan, I have some land in dn2 5qa just under 1acre would you as a investor be interested in purchasing or any developer that may want to go in partnership. Thanks in advance

[@DavidWayne-tr5zh]

I have been looking at a SOF maisonette but read that it can be difficult to get a mortgage on these. I would be a cash investor but would I have a problem refinancing or selling on in thefuture?

[@adielstephenson2929]

You mean "leasehold houses" at the 3.08 mark right? You say freehold.

[@krisjenkins4167]

Hi Ranjan, love the content, Quick question about title splitting.. I have a block of freehold flats. 4 flats. I paid 255k for the building. Rent was £1700pcm. I spent 40k refurbing. Rent is now £2400pcm. What will give me the highest valuation? A commercial valuation based on the rent (as oposed to bricks and motar valuation) Or splitting the titles of the 4 flats, then a valuation? Thanks in advance :)

[@ranolinst4690]

Hi Ranjan, what would you estimate as a good yield for a Share of freehold flat in London? I've seen that most yields are around 4% which isn't that great...

[@ranjanbhattacharya-succeed7617]

Great question. There isn’t much difference between yield for leasehold and SOF flats

[@ranolinst4690]

@@ranjanbhattacharya-succeed7617 Would you say a 4.5 to 5% yield for a SOF flat is above average? It seems like London yields don't look great compared to the north west regions yielding 6 to 7%

[@taraboden5780]

I am dealing with my friends one bedroom flat. Who sadly passed away. Got 65 years left on the lease. Thinking it’s best to sell because the renewal of the lease is to expensive. Could l extended the lease for a new owner. I have not lived there. Many thanks

[@thepropertynoobs9089]

If you can extend it’ll make it incredibly more attractive to potential buyers.

[@rmmr559]

Get professional advice, speak to a solicitor.

[@ranjanbhattacharya-succeed7617]

Also checkout this video kzbin.info/www/bejne/iKbRmGuHidqKfrc (Bernie Wales speaking at Baker Street Property Meet on the subject of extending short leases. He is an expert on this subject)

[@antoniopalmiero6761]

For me is just crazy the leasehold stuff 😒

[@hudson7354]

I have one flat ( leasehold) Absolutely rubbish with service charges at 85 pcm. Then the problem of extending it one day. Terrace house every time

[@19grand]

Do you think the laws need to change?

[@rizwanalibhai7568]

I have a flat with depreciating lease (60 odd years). No mortgage on it and good rental yield. F/H is willing to extend lease but wants £5,000 plus costs ((about £1k). It is on the peripheries of Kent. How do I find it is a fair price and worth doing?

[@curtislees2833]

Find out how to work out ROI (return on investment)

[@FrugalFinance]

Assuming your not entering into some crazy ground rent terms and the extent on gives you 125y or more then that’s figure seems reasonable for a 1 bed in Kent. I Am paying £18600 for. 2 bed with garage just outside of Brighton.

[@ranjanbhattacharya-succeed7617]

On the face of it, it does seem reasonable. Do get some advice though from a surveyor who specialises in this stuff. Also check out Bernie Wales: kzbin.info/www/bejne/iKbRmGuHidqKfrc

[@barrygreenwood9587]

Did you forget about Scottish terms ?

[@rumitsomaiya753]

Yeah I have flat in Scotland and it's only share of Freehold north of the border.

[@ranjanbhattacharya-succeed7617]

Absolutely correct. This video is about England and Wales

[@kunwer9216]

Come on Ranjan be honest who has taken on the special effects, do you edit these yourself?

[@ranjanbhattacharya-succeed7617]

Thank you. Glad you appreciate the special effects. I Have a great editor behind the scenes!

[@bakieliacik5949]

Tanks so much for your efforts that is very helpful

[@ranjanbhattacharya-succeed7617]

Glad it was helpful!