I Converted This House Into 2 Flats

In this video, I'll be sharing the project where I converted a house into 2 flats with each flat costing me £21k. There will be a discussion of where and how I purchase the property, before and after floor plans and photos, financials, and of course, the challenges and learnings that I got from this investment project. Join me in this amazing house transformation!
📚 Property Course: www.Ravinderaujla.com
Timestamps:
00:00 - Introduction: Converting a house into two flats
00:45 - The buy, refurbish, rent, and refinance strategy (BRRR)
01:03 - Creating two separate flats
01:22 - Viewing the property
01:51 - Before and after floor plans
02:24 - Before and after pictures
03:20 - How did I finance and refinance this property?
03:41 - What are the final numbers?
05:17 - Comparison to a normal buy to let investor
06:11 - Did this project have any challenges?
📩GET IN TOUCH
LinkedIn → / ravsinghaujla
Facebook → / ravsinghaujla
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Twitter → / ravsinghaujla
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👉ABOUT ME
At the start of 2017, I started a serviced accommodation company. In our first year of business, we leased over 30 serviced accommodation properties in various towns and cities.
Alongside serviced accommodation, we also undertake small property development projects where we purchase, refurbish and hold residential properties in Central London. In the last 14 months, we have acquired and developed a multi-million pound worth of properties.
If you would like me to speak at your event, or if you're looking to invest in property and need some advice then get in touch!
🌎 Website → www.ravinderaujla.com/

[@user-fs2cs8hv9l]

I run my own mortgage company, your videos have a great amount detail without any jargon I will definitely be sharing your vids with my clients to help plan their property ventures! Thank you Ravi 👌

[@RavinderAujla]

Thank you so much - i appreciate you taking the time to comment and your kind words :)

[@user-fs2cs8hv9l]

@@RavinderAujla No worries at all, it would be great to catch-up to see what you are currently working on spefically around the challenges of a property developer from a finance perspective. Let me know if you would be interested.

[@sukrajsaini5457]

Brilliant video. Thank you.

[@RavinderAujla]

Thank you :)

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@traintomorrow]

Thanks that was very informative , it is something i always wondered about

[@RavinderAujla]

Glad it was helpful!

[@v2dheart219]

great content and impressive production values, keep up the good work and stay steady striving Ravinder :)

[@RavinderAujla]

Thank you so much I appreciate it and happy to share my journey :)

[@uchkun100]

Thank you so much for your extremely useful videos. 👍👍👍🙏🙏🙏 loooove your channel . I can’t use your strategy here in Singapore but it can be used in many other countries! Great video!

[@RavinderAujla]

Thanks Mariam - im sure something else could work there? 1 bedroom flats into 2? 2 bedroom houses in 3? 3 bedroom houses into 5! :)

[@pb.8509]

Hi, great informative video. What did you do with the front of the property between the two doors? Garden/communal space etc? Thanks

[@RavinderAujla]

Hi PB. Thanks for the comment. The front garden actually belonged to the council so I didn't do anything. It was a bonus as they come and maintain it and cut the grass!!

[@gore5542401]

I am looking at doing the same, would you recommend going all electric heating / cooking or having Gas. Just thinking of the yearly gas safe certs. Any ehlp would be appreciated. Did you have to get the flats up to an EPC rating of C?

[@RavinderAujla]

Hi. I hope you are well. Thanks for reaching out. One of the apartments had gas. We did look at getting another gas line in but it was going to take a long time and with the additional costs didnt seem worth the hassle. Alot of big developers put in all electric so there is nothing wrong with it. In terms of the EPC - the one with the electric did come out at a D and the one with the gas a C. I made sure our lenders would be happy with this and they were so no issues. Just double check if you are going for a BTL mortgage what EPC the lender will expect to see. You can work with your EPC assessor to make sure you meet their requirement. I hope that helps :)

[@ducativnb]

Great video! Can you explain the steps you took about splitting the utilities and how long it took. Thanks. Keep up the work 💪

[@RavinderAujla]

Thanks so much - splitting the utilities - is straight forward - you simply contact UK Power Networks for the electrics and your water company - complete an application form, they do a survey and then let you know what you need to do and by when and the cost of the works. The application and survey is usually quick - usually within weeks and then depending on if they need to close the road or set up traffic lights the connection can take 4 to 6 weeks.

[@ducativnb]

@@RavinderAujla Thanks for sharing

[@jassidhu5074]

Great video Ravinder, did you need to do anything to the flooring between the properties in regards to fireproofing/soundproofing for building regs, to pass them as two flats?

[@RavinderAujla]

Hi Jas - yes definitely - we had to have a sound test completed to check the current sound transfer levels and then we had to install sound insulation in order to bring it up-to building regulations requirements. We worked with a sound testing company who completed the initial test, recommended a course of action and once the works were complete they re-tested to make sure we were compliant with Building Regulations - once we were they issued us with a pass certificate which we were able to pass onto building control and anyone that asked for it! I hope that helps :)

[@jassidhu5074]

@@RavinderAujla thank you for your response, forgot to reply all that time ago. Much appreciated.

[@asmarani4634]

This looks great… lots of valuable information Thankyou 👍

[@RavinderAujla]

Thank you so much! Glad you find it useful! :)

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@gamblersruin]

Wow, great video, thanks Ravinder. Quick question, @ 4.14 on the numbers, what does the ''Less bookings - £18,152' mean? Thank you.

[@RavinderAujla]

Hi - we received a short term booking when the flats were completed before refinancing them onto a buy to let mortgage - so this was the monies we had received from that booking. I hope that helps :)

[@eamonhannon1103]

Very clear and well presented !

[@RavinderAujla]

Glad it was helpful!

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@rajaifty5010]

Hi great video how complicate was the title splitting creating the two leases? I got a couple of property’s that have been converted to flats years ago but just seems every solicitor I ask makes it sound like a long complicated procedure.

[@RavinderAujla]

Hi Raja. I hope you are well. Thanks for the comment. The process was easy and straightforward. I think it just depends on the solicitor you use - if they are not experienced then maybe yes to them it could be a long drawn out process but in my experience it was easy and straightforward. Happy to introduce you to our solicitor if that helps :)

[@rajaifty5010]

@@RavinderAujla hi thank you for taking the time to reply if you could share the details would be appreciated. Many thanks

[@rajaifty5010]

@@RavinderAujla I’ll message you on Facebook

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@Burning_desire22]

Hi Ravinder, this appeals to me more than a leashold flat. I will look into getting into this. How does the central heating work, is it two boilers needed for each flats?

[@RavinderAujla]

Hi Burning Desire - nice to hear from you! Yes you will need to have separate utilities for each apartment - so for these we have a gas boiler in one flat and the other flat we have a mega flow system which uses electricity.

[@jonfrderick]

Hey, did you use the bridge to pay for the property and finance the other costs?

[@RavinderAujla]

Yes I used a bridging loan for the purchase and refurbishment costs.

[@JNYC-gb1pp]

On a 3 floor house that has a shared entryway, would you be allowed to add bathroom and kitchenette on one floor, a kitchenette on other so create 3 separate units? How would it classify - as 'roomates'? (Even tho technically it isnt and each floor would be private - kinda like an apartment building)

[@RavinderAujla]

Hi J. I hope you are well. Sounds like a HMO to me. You would need to make sure you meet the HMO requirements in the area that you are in. If it does meet the HMO requirements and you get tenants in place you can get it valued on a HMO basis. I hope that helps.

[@Audriquackmaster7]

Great Video! How to identify the houses with two front door access when you did your searching on Rightmove?

[@Audriquackmaster7]

And how do separate the utility bills and council tax for different units?

[@RavinderAujla]

Hi. I came across these by chance and thought it was odd that these houses had 2 entrances. One entrance is used for the main entrance and the other is usually an entrance to the side of the house/utility area. You cant filter for these on rightmove but keep your eye out for houses in your area or area that you are looking at - they are everywhere! You dont have to look for these types of houses - houses with a single entrance work but then you have to have a shared communal area which I wasnt keen on - everyone likes there own entrance! Just my preference. I hope that helps :)

[@RavinderAujla]

Each unit needs to have its own utilities - so electricity and water supply. You can contact UK Power Networks for additional electricity lines. You can contact your water supplier about a new water line. Once the units are complete you can apply for another council tax entry and they will give you a new account. I hope that helps :)

[@ahmadsauyack2770]

Ahmed khan has the same house picture and he says he bought the house. Who is right?

[@RavinderAujla]

We are business partners - so he half right and im half right!

[@Andrew-sz7vh]

Hi Great video What did you do about gas lines , electric ? if you have separated the gas and electric, who does the gas and electric split between 2 flats? And can you tell me please what is the route to start this conversation? Architect first, building control , conversion precision, gas, electrical? Where do I go first? Thank you Whe

[@RavinderAujla]

Hi Whe. The house already had a gas connection so we used that in one of the apartments and we used electric for the other apartment. We did get a new electric supply using UK Power Networks - so we ended up with 2 supplies - one for each flat. In terms of doing one of these conversions - yes you need an architect, who will design the layout and submit for planning permission. Once that is granted then he will do the building regulation drawings which you can use to get quotes for the works involved. You can then speak with your electricity provider in the area about getting a new line in (it might be UK Power Networks). And a builder to complete the rest of the works. I hope that helps - let me know if you need anything else :)

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@shamimuddin4542]

hi Ravinder how did you find out about the criteria the council is looking for in order to turn a 3 bed into 2 flats?

[@RavinderAujla]

I contacted 3 architects in my area and told them what I was looking to do and asked if they could help me develop a crtieria i could use when looking for property :) I hope that helps

[@harinder.mullay]

Hi Ravinder - great video! A question about splitting the gas and electrics - how’s the best way to go about this?

[@RavinderAujla]

Hi. You need to contact UK Power Networks in terms of the electrics and gas Cadent - is have created a course on this if you feel it would help its on my website so check out ravinderauja.com

[@harinder.mullay]

@@RavinderAujla Thanks Ravinder - just a heads up the link doesn't work

[@sunilgill5874]

Hi mate. First of all, great video. I wonder if you can advise here, I have an unencumred property that was converted into two flats around 20 years ago by the previous owners. I don't have planning but have refurbished both flats and have tenants in both. I have just purchased the freehold. I want to refinance into a BTL but I'm unsure if I should or even could split the leases and refinance as seperate properties. I have been advised as the freeholder I cannot split to leases. Any advise would be greatly appreciated as I'd like to get the most value out of refinancing! Best

[@sunilgill5874]

Just to add further to that, there is a small shared all way with seperate doors to each flat. They both have their own water connections, gas and electric downstairs and full electric upstairs including boiler etc. The council bills the CT as two seperate flats and it's recognised when you enter the post code into the council website.

[@RavinderAujla]

Drop me an email - im sure i can help! [e-mail]

[@RavinderAujla]

Time to make it rain - drop me an email [e-mail]

[@sunilgill5874]

@@RavinderAujla thanks Ravinder. Will do that later on today 🙏🏼

[@jagirthandi]

Hi Ravinder, Thanks for making this video Could you please tell me if we demolish Our old house and build brand new two houses do we need to pay stamp duty The value will be for both 1.2m, Thanks.

[@RavinderAujla]

Hi Jagir. I hope you are well. Thanks for the comment. No stamp duty to pay. Stamp duty is only paid when you buy a property. I hope that helps :)

[@jagirthandi]

@@RavinderAujla Thank you so much 🙏

[@passive.property8727]

Hi love your videos we are about to do the same. Question, will having the flats on separate leaseholds increase the value when we refinance? Rather than having two flats valued as one freehold? Thanks

[@RavinderAujla]

Hi Passive. I hope you are well. Thanks for reaching out. We did initially look to get one lender to lend on the block but found that the value wasn't going to be as high and therefore decided to split the titles to the 2 properties to create 2 leases - one for each apartment. I think it really does depend on your broker and the terms they can provide - a lot of the multi block deals couldn't do 80 percent loan to value and some only wanted to give 70 percent loan to value. So speak with your broker and see what products are on the market and see what typical loan to value and rates are available. I hope that helps.

[@passive.property8727]

@@RavinderAujla thats a great help, I thought that would be the case but we'll definitely double check all that with our broker. Thanks for the reply much appreciated

[@passive.property8727]

One more quick question, hope you don't mind haha... were looking at doing the same kitchen set up.. what do you do with regards to a fridge freezer?? are they integrated in the lower units or do you have a separate stand alone?

[@kamgunner5920]

congratulations and well done project looks real nice! I have a property I want to convert into flats in SE London. any advice or guidance you can offer? thanks.

[@RavinderAujla]

Hi Kam - sure happy to help please drop me an email to [e-mail]

[@weichengcn]

Hi Ravinder, you said at the beginning of the video that you would learn relevant council policies. Is it flat conversion policies that you looked into?

[@RavinderAujla]

Hi - yes I looked at the council website and I contacted a planning officer at the council to try and understand what the councils requirements were for granting planning permission because I wanted to be clear that I was ticking those boxes and therefore the chances of getting planning permission through were higher. I hope that helps :)

[@weichengcn]

@@RavinderAujla Thanks Ravinder, I am amazed you could get hold of a planning officer. My experience is that council always ask me to file an pre app. any tips on getting hold of planning officer would make another great video:)

[@RavinderAujla]

@@weichengcn will try to make a video about that. Thank you for suggesting! Sorry I just saw this. :)

[@sherazshams1835]

Great informative content. I’m considering converting my 3 bed terraced house into two flats. Can I ask roughly the overall cost for this and what the major cost items are please and how much approx do they cost? I’ve been quoted about £60k by a builder but this seems too steep (based in Bedfordshire)

[@RavinderAujla]

Hi Sheraz. I hope you are well. Best to make a schedule of works and get quotes for the works. The costs will vary depending on whether you get someone to complete the works end to end or if you project manage the project yourself. You will have to factor in the following costs: - Planning permission - cost of getting an architect to draw up the plans and submit the application and then wait 8 weeks. If accepted then you will have to pay for building regulation drawings - Professional Certificates Certificate to sign off on the works and provide a warranty so that you can refinance each of the flats onto BTL mortgages - Sound Testing to determine the level of sound insulation you will need - Splitting the water, electric and gas - Rewire for new apartments - New Kitchens, Bathrooms for each of the apartments - New heating sources for each of the apartments (boilers,megaflow for example) - Paint and plastering throughout - New Flooring throughout - Windows and Doors potentially Certificates to show the works are completed in line with building regs: - Gas certs - Electrical certs - EICR - Building Control Sign off - PCC Sign off High level thats most of the items you will need to consider - I hope that helps :)

[@easyielts2660]

Well done Ravi

[@RavinderAujla]

Thank you :)

[@tstube818]

Great video. I’m hoping to convert my garage into two separate flats. What type of planning application do I need to apply for? Householder Planning Consent of Full Planning Consent? Thanks. New subscriber!

[@RavinderAujla]

Thanks t s and welcome :) Yes you will need a full planning application. Speak with a local architect in your area to see whether or not there might be any issues in getting planning permission. See if anyone else has done it in the immediate area - you can then search using the post code on the planning portal and that will give you the name of the architect they used and give you access to all the documents that were submitted. I hope that helps :)

[@tstube818]

@@RavinderAujla thanks for replying

[@eamonhannon1103]

Two entrances ?Normally there is one entrance . Was this house divided into two apartments at some time in the past , perhaps before the previous owners had purchased it , hence the two entrances ?

[@RavinderAujla]

No - I have seen this in other areas as well - these houses have 2 entrances - one is the main entrance and the other one is used to access the garden at the back so is like an internal ally way.

[@Jesuisblanco]

Wouldn't the BTL comparison be the cost price rather than the value of the properties after the works been done? So rather than £410k it would be £365k?

[@RavinderAujla]

It got valued at £410k once the work was complete.

[@user-wg9sh9ev5b]

Hi Ravinder Great video, I have a 3 bedroom terraced house and want to convert it into two flats. Will I require two entrances?

[@RavinderAujla]

Hi - you won't need 2 entrances - its just that the houses I found had 2 entrances and so thats why I used them. Good luck I hope it goes well - let me know if you need any help.

[@navdeepmangat2840]

How difficult was it to pass sound test? Any tips or company recommendations?

[@RavinderAujla]

Hi Navdeep. I hope you are well. Yes work with a sound testing company - they will have a look at what you have in place currently and they will let you know what you need to put in place in order for it to pass the sound test. They will give you diagrams to follow showing you the number of plasterboards you need, any air gaps you need to leave and also the type and thickness of the sound insulation needed. In terms of companies - we have used Site Sound and a company called Jostec. Depends on where you are based - but see if either of these companies cover your area.

[@navdeepmangat2840]

@@RavinderAujla Thank you for your advise. I will contact those companies.

[@sambuka10000]

Hello, Ravinder is it correct you do not need a licence to turn a 1-bed house into a 2-bed flat? anyone can do it as long as you get the planning permission?

[@RavinderAujla]

Hi - you need consent from the freeholder to convert a 1 bedroom flat into a 2 bedroom flat. You do not need planning permission - this is something different. Let me know if you have anymore questions :)

[@delmisamorais7819]

@@RavinderAujlaHello I hope you are doing good. If I want to buy my council property and want to make 3 bedroom instead of 2, the price valuation will be more expensive? Should I wait until they do the valuation of the property?

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@mba0073]

Nice step by step video. Who is responsible for the roof?

[@RavinderAujla]

The freeholder is responsible for the roof - we are the freeholder so we are responsible. Should we choose to sell one flat in the future then the new owner would have to contribute to any repairs 50/50. I hope that helps :)

[@mba0073]

@@RavinderAujla that’s helpful. Assuming leases reflect a 50:50 split at the moment or will you update the lease if you ever decide to sell?

[@mandyking7169]

Hi how can I get in touch with you

[@RavinderAujla]

Just replied to your email - thanks Mandy

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@owencampbell3330]

Hi need no more regrading cost

[@RavinderAujla]

Hi Owen. I hope you are well. Not sure what the question is?

[@Jimbo_Gringo]

That image of the finished flat is the exact same that Ahmed khan shows for one of his projects. We’re you a partner on this? Or is one of you telling fibs haha

[@RavinderAujla]

Hi - we are business partners :)

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s

[@rustyrocket8765]

Fantastic content and I have just subscribed. Do you mind sharing the details of your architect which did this project ? Thanks in advance

[@RavinderAujla]

Hi. I would recommend getting an architect that is local to your particular area they are more likely to know what is and isnt likely to get planning approval. What you could do is have a look around your area for anyone converting houses into flats or for anyone that has converted a house into flats, then go onto the planning portal and search for the property in question. Have a look at the planning documentation and the plans will have the architect who submitted for planning - bingo! You have found someone local with experience who is likely to help you. I hope that helps :)

[@shiv7313]

kzbin.info/www/bejne/gquvqXynmsRgj6s