In all honesty I'd stay away from 90% of flats at the moment, especially high rise built in the boom pre 2008 crash. I work as a building surveyor and loads of our work atm is looking at high rise from a fire safety point of view since the Grenfell tradedgy. So many high rise weren't built compliant and in some cases residents/owners are having to fork out up to 30k to remdiate them. And until then the flats are unmortgageable.
Very true I came across this problem when trying to buy my first flat i was also told that it could take years to even Get it surveyed thank god they didn't accept my offer
@@jordanhtiffirg1990 Hey Jonathan! Thank you for the comment. Coming back to yr comment after 2 years, do you think that there is still a cladding risk with developments below 12m in height and a 10years warranty?
My dad (a builder by trade) had a thing about flats and never buy one. His reasoning was there was only some a-hole above you could leave the bath running or the chip pan on.
Yes... My toilet leaked into the flat beneath me, I had to pay for new plaster board for his new ceiling.... Got my entire bathroom tiled now sooo hopefully a little more waterproof now
Hi I’ve got a council house that’s been converted in to 2 flats basically the stairwell as been bricked up and a side door added for my own personal access. Is this probably the best type of flat to purchase in regards to buying flats I’ve got a lovely big backyard and front yard and my neighbour is pretty chilled 👍🏻👍🏻👍🏻
You must be psychic, Tony! I'm currently buying an apartment but thankfully it ticks all the boxes, after watching your video. Thanks again for all your help :)
I wish this video's came out in 2018. I committed to buy a flat with no sinking fund or management even though it's got great storage and an extremely long lease.
Hi Tony. I like your videos a lot, but have to disagree on the flats. The flat I had, did not have sinking fund. It was two story building, peppercorn leasehold. I looked after upper half of the building as I was on the first floor along with my neighbour and those living downstairs looked after ground floor and the gardens. That was our unwritten agreement that worked. This flat brought me 27.5 K gross profit when sold. The buyer loved the fact there was no hefty maintenance charges like in other usual leasehold flats that saved me a fortune over the years.
@@YourFirstFourHouses Cheers Tony. Could you share your experience on how do you check letting demand? I have visited recently newly refurbished HMO in Ipswich in great location (next to the park, local uni, town centre and local amenities) that struggled for tenants. It was absolutely empty, not even one tenant lived there. I got scared to invest seeing this. What could be a potential problem there? Could you make a video about it, please?
Thank you for the question but it’s a bit of a difficult one to answer because it depends on a ton of variables - as I’m sure you can appreciate. ….. but if it helps I wouldn’t automatically disregard it just because it’s a basement flat. Sorry I couldn’t be more help.
As someone who is just buying a 2 bedroom flat in the UK, you're bloody right. I turned down a nice offer because they had no management meetings. ahaaa. Also don't buy a one bedroom flat, you WON'T be able to sell it, because no one wants it, trust me on that.
Hi, Hope it's not too late to ask on this 2 year old video. As a landlord, I have a big Victorian semi detached house with 7 flats in it that I bought as an investment, and have had them rented for about 20 years. I now want to sell as separate leasehold flats, (probably 999 year leases with a peppercorn rent). I plan to use part of the selling price of each flat to create a sinking fund..... how big do you think the sinking fund needs to be? It's Manchester and my guess is that the service charge will be about £120 per month for each flat.
We have depleated our sink fund as we needed a new roof. That doesnt mean to say the block I live in is not well managed and we will start to build up our funds for the future
I love your videos, great tips, I have a question, I am almost mortgage free on my own property and I currently have 2 buy to let properties that are on repayment mortgages, I want to grow my portfolio a little faster and I'm thinking of taking a loan against my own home to cover 2 deposits on another 2 buy to let repayment mortgages, I hope I've made sense of this haha, any thoughts
That's a great question Ian, but I couldn't possibly advise you on this without knowing a lot more about you and what you want to achieve. Feel free to book up a 45min coaching call if you wish to pursue this and I'll be happy to help.
Hi Tony, accidentally, and ofcourse pleasantly I watched your video. One question if you care to answer please. Is there a charge to talk to you about properties?
I do charge for Coaching Calls - Yes. If you kindly go to the following link you can find out all about that service... Www.yourfirstfourhouses.com/coaching
Don't buy a flat before you get to chat to your 'to be' neighbours, don't buy a flat over a shop/hairdressers if you have mental health issues. TRUST ME, GET A MOTOR HOME INSTEAD!
Any advice on getting first floor flat to lay carpet. I live on the ground floor and the noise is unbearable. How can we change the law so people an live in peace?
Sadly I've been in this situation and TOTALLY GET how annoying it can be. If you're staying there and have the ceiling height you can install effective sound insulation from underneath..... although I appreciate you shouldn't have to. 😞
May sound like a silly question but have you let the first floor occupant/s know about the noise? It's possible it's they're oblivious to the effect it's having on you so perhaps a polite knock on their door and explanation might help them to sympathise and put something in place, even if it means they walk around in socks or lay rugs down. You'd be surprised how accommodating some people can be once you bring something to their attention. I'd also say that in the lease of many first floor flats, it says no wooden/laminate flooring, only carpet for this very reason, so it doesn't effect those living below. So perhaps, if the property is owned they're breaking the lease by having anything other than carpet down for flooring. Just a thought.
Hi Tony, great video. I just had one question. I know someone who is a council tenant and she has the right to buy her flat. Is it worth her buying it as an investment as its much cheaper then other property? It's in a low level council building (3 floors) in a nice area. Thanks
@@YourFirstFourHouses fully understand Tony. I just thought the property was more solid then new builds and in a good area. But yes, without accurate information it's hard to say.
1- Leasehold is another way for the investor/freeholder to rip you off. 2- You must pay the freeholder £1000s to get their permission to live there for a bit longer so you basically you are a long term renting not a property owner.
Hi Tony, I recently bought my first property (a 1 bedroom flat which I saw potential to add value to by turning the lounge into a 2nd bedroom). I won’t be changing anything structurally to the flat, just building a wall through some wood and plaster board but I’m now worried that I might be breaking some law that i am unaware of. Do i need planning permission to increase the occupancy capacity? Do i need the freeholder’s consent? Grateful for any advice...
Hi Jacob, a great question. I'd start by checking the lease and also with the planting department. I'd also speak to your freeholder and an independent building Inspector. Gosh luck with the project 😊
In my opinion... just because they’re Ex-Council flats, does not, in itself mean you should reject them. Of course you might reject them for other reasons, but i would suggest this would vary from property to property. I hope that helps 😊
Your First Four Houses thanks you tony appreciate it the only thing I am worried about is that it the only one private own the rest in that building are council What u thought on that being the only that privately own
HI! One question: Lets say I bought a property for cash, refurbished it, refinanced it, and for some reason cant meet the payments. What happens then? What are the consequences?
@@YourFirstFourHouses Hi, Thanks for the response. And what happens if in the meantime the property lost value: lets say I refinanced the property for 200,000, and by the time I cant make meet the payments its at 180,000. Can the lender ask for that extra 20,000? Can they go after my other assets?
@@YourFirstFourHouses It isnt (thank god). But its one of my concerns when I think about growing a portafolio through refinancing. I just dont know all the rules in the game, basically... I mean, If its only that you can lose the property, well... If you got your money back when you refinanced it, then I guess it is not too bad...
BORRIS JOHNSON ruined Renting scheme by introducing (affordable rent) which is double the price of social rent. How do you manage to call something twice the price affordable. I call it (BORRIS RENT) so people relate better to it. I rent a housing association 1 bed for £220 at newly created (affordable rent) a month but previous tenants paid £110 at (social rent). BORRIS doubled the price literally. BORRIS is after all the land lord class, what does he know about working class.
In all honesty I'd stay away from 90% of flats at the moment, especially high rise built in the boom pre 2008 crash. I work as a building surveyor and loads of our work atm is looking at high rise from a fire safety point of view since the Grenfell tradedgy. So many high rise weren't built compliant and in some cases residents/owners are having to fork out up to 30k to remdiate them. And until then the flats are unmortgageable.
That's a very good point Jonathan, thank you for sharing 😊
Very true I came across this problem when trying to buy my first flat i was also told that it could take years to even Get it surveyed thank god they didn't accept my offer
@@jordanhtiffirg1990 Hey Jonathan! Thank you for the comment. Coming back to yr comment after 2 years, do you think that there is still a cladding risk with developments below 12m in height and a 10years warranty?
My dad (a builder by trade) had a thing about flats and never buy one. His reasoning was there was only some a-hole above you could leave the bath running or the chip pan on.
I think your Dad may have a good point there 😊
Yes... My toilet leaked into the flat beneath me, I had to pay for new plaster board for his new ceiling.... Got my entire bathroom tiled now sooo hopefully a little more waterproof now
Got another one for you - doubling ground rent. I recently pulled out of buying a flat for that reason. A lot of lenders won’t like this.
Excellent observation. 😊
Excellent tips! I'm looking to buy a city flat and never thought about all these
Hi I’ve got a council house that’s been converted in to 2 flats basically the stairwell as been bricked up and a side door added for my own personal access. Is this probably the best type of flat to purchase in regards to buying flats I’ve got a lovely big backyard and front yard and my neighbour is pretty chilled 👍🏻👍🏻👍🏻
You must be psychic, Tony! I'm currently buying an apartment but thankfully it ticks all the boxes, after watching your video. Thanks again for all your help :)
Cool 😊
I would like to also add make sure flats that have cladding, bind with government regulations, or it could be expensive in the future.
Very good observation 😃
I wish this video's came out in 2018. I committed to buy a flat with no sinking fund or management even though it's got great storage and an extremely long lease.
Have you been hit with any surprise bills since buying?
Hi Tony.
I like your videos a lot, but have to disagree on the flats. The flat I had, did not have sinking fund. It was two story building, peppercorn leasehold. I looked after upper half of the building as I was on the first floor along with my neighbour and those living downstairs looked after ground floor and the gardens. That was our unwritten agreement that worked. This flat brought me 27.5 K gross profit when sold. The buyer loved the fact there was no hefty maintenance charges like in other usual leasehold flats that saved me a fortune over the years.
That's a very fair point and thank you for sharing. 😊
@@YourFirstFourHouses Cheers Tony. Could you share your experience on how do you check letting demand? I have visited recently newly refurbished HMO in Ipswich in great location (next to the park, local uni, town centre and local amenities) that struggled for tenants. It was absolutely empty, not even one tenant lived there. I got scared to invest seeing this. What could be a potential problem there? Could you make a video about it, please?
what's your thought on a basement flat?
Thank you for the question but it’s a bit of a difficult one to answer because it depends on a ton of variables - as I’m sure you can appreciate.
….. but if it helps I wouldn’t automatically disregard it just because it’s a basement flat.
Sorry I couldn’t be more help.
As someone who is just buying a 2 bedroom flat in the UK, you're bloody right. I turned down a nice offer because they had no management meetings. ahaaa. Also don't buy a one bedroom flat, you WON'T be able to sell it, because no one wants it, trust me on that.
1 bedroom in London is good value
what about the length of the lease?
Hi, Hope it's not too late to ask on this 2 year old video. As a landlord, I have a big Victorian semi detached house with 7 flats in it that I bought as an investment, and have had them rented for about 20 years. I now want to sell as separate leasehold flats, (probably 999 year leases with a peppercorn rent). I plan to use part of the selling price of each flat to create a sinking fund..... how big do you think the sinking fund needs to be? It's Manchester and my guess is that the service charge will be about £120 per month for each flat.
Thanks for the free advice.
Thanks Derek 😃
We have depleated our sink fund as we needed a new roof. That doesnt mean to say the block I live in is not well managed and we will start to build up our funds for the future
That’s exactly what a sinking fund is for and so it’s great you had one… so many properties do not unfortunately.
hi tony lots of great content well done
Thanks Andrew
Thanks for the video!
Thank you for watching 😊
When you pay service charges is that the same as having a sinking fund
The service charge fee sometimes/usually includes a payment towards the sinking fund... but it's important to check.
Hi tony, just a thanks for all the videos you’ve made the knowledge is invaluable 👍
Thanks so much 😃
awesome little video there tony:) full of amazing little nuggets there:)
Thanks Jams 😊
I love your videos, great tips, I have a question, I am almost mortgage free on my own property and I currently have 2 buy to let properties that are on repayment mortgages, I want to grow my portfolio a little faster and I'm thinking of taking a loan against my own home to cover 2 deposits on another 2 buy to let repayment mortgages, I hope I've made sense of this haha, any thoughts
That's a great question Ian, but I couldn't possibly advise you on this without knowing a lot more about you and what you want to achieve.
Feel free to book up a 45min coaching call if you wish to pursue this and I'll be happy to help.
@@YourFirstFourHouses how would I go about booking a coaching session with you?
Hi Ian, if you go to my website you will find the link there... I look forward to speaking to you 😊
It’s a ( Sink Fund ) not sinking fund
Hi Tony, accidentally, and ofcourse pleasantly I watched your video. One question if you care to answer please. Is there a charge to talk to you about properties?
I do charge for Coaching Calls - Yes.
If you kindly go to the following link you can find out all about that service...
Www.yourfirstfourhouses.com/coaching
Don't buy a flat before you get to chat to your 'to be' neighbours, don't buy a flat over a shop/hairdressers if you have mental health issues. TRUST ME, GET A MOTOR HOME INSTEAD!
Any thoughts about studio flats?
In what regard Arjun?
Pls send the checklist .... thank you
Just go to yourfirstfourhouses.com to download 😊
Any advice on getting first floor flat to lay carpet. I live on the ground floor and the noise is unbearable.
How can we change the law so people an live in peace?
Sadly I've been in this situation and TOTALLY GET how annoying it can be.
If you're staying there and have the ceiling height you can install effective sound insulation from underneath..... although I appreciate you shouldn't have to. 😞
May sound like a silly question but have you let the first floor occupant/s know about the noise? It's possible it's they're oblivious to the effect it's having on you so perhaps a polite knock on their door and explanation might help them to sympathise and put something in place, even if it means they walk around in socks or lay rugs down. You'd be surprised how accommodating some people can be once you bring something to their attention. I'd also say that in the lease of many first floor flats, it says no wooden/laminate flooring, only carpet for this very reason, so it doesn't effect those living below. So perhaps, if the property is owned they're breaking the lease by having anything other than carpet down for flooring. Just a thought.
Some VERY good points here!
Hi Tony, great video. I just had one question. I know someone who is a council tenant and she has the right to buy her flat. Is it worth her buying it as an investment as its much cheaper then other property? It's in a low level council building (3 floors) in a nice area. Thanks
Probably Rav, bit to be honest I couldn't really say as I don't know anything about the property. Sorry I couldn't be of more help 😊
@@YourFirstFourHouses fully understand Tony. I just thought the property was more solid then new builds and in a good area. But yes, without accurate information it's hard to say.
dont buy anything with a leasehold..
Why do you say that MoMo?
1- Leasehold is another way for the investor/freeholder to rip you off.
2- You must pay the freeholder £1000s to get their permission to live there for a bit longer so you basically you are a long term renting not a property owner.
Thank you for your comment MoMo
@@MoMo-lu2ee what are alternatives? Most flats are leashold, and freehold properties are so expensive
@@MoMo-lu2ee
What's your opinion on share of freehold flats?
How can I buy a flat without mortgage that has resell value?
Hi Tony,
I recently bought my first property (a 1 bedroom flat which I saw potential to add value to by turning the lounge into a 2nd bedroom). I won’t be changing anything structurally to the flat, just building a wall through some wood and plaster board but I’m now worried that I might be breaking some law that i am unaware of. Do i need planning permission to increase the occupancy capacity? Do i need the freeholder’s consent? Grateful for any advice...
Hi Jacob, a great question. I'd start by checking the lease and also with the planting department. I'd also speak to your freeholder and an independent building Inspector. Gosh luck with the project 😊
Hi, did you manage to go ahead with converting your flat? Would love to know more about your experience as I'm in a similar place right now. Thanks!
Good content
Thank you 😊
What about ex council flats
In my opinion... just because they’re Ex-Council flats, does not, in itself mean you should reject them. Of course you might reject them for other reasons, but i would suggest this would vary from property to property. I hope that helps 😊
Your First Four Houses thanks you tony appreciate it the only thing I am worried about is that it the only one private own
the rest in that building are council
What u thought on that being the only that privately own
Hi, Solomon investment company.....flats with management option for 10years and Guranteed rent.....can someone advise
Advise on what?
Why not let people who intend to live in them themselves buy them?
They absolutely can buy them 😊
Disagree with 2 of these I have lived in flats no sinking fund or management ok my flats are in cities are listed.
Thanks for your comment JT and I'm pleased to hear you had no problems.
HI! One question: Lets say I bought a property for cash, refurbished it, refinanced it, and for some reason cant meet the payments. What happens then? What are the consequences?
Repossession.
@@YourFirstFourHouses Hi, Thanks for the response. And what happens if in the meantime the property lost value: lets say I refinanced the property for 200,000, and by the time I cant make meet the payments its at 180,000. Can the lender ask for that extra 20,000? Can they go after my other assets?
Is this your situation?
@@YourFirstFourHouses It isnt (thank god). But its one of my concerns when I think about growing a portafolio through refinancing. I just dont know all the rules in the game, basically... I mean, If its only that you can lose the property, well... If you got your money back when you refinanced it, then I guess it is not too bad...
@@danielg1211 If you end up with a property being reposessed, then this will make securing a mortgage in the future again very difficult!
BORRIS JOHNSON ruined Renting scheme by introducing (affordable rent) which is double the price of social rent. How do you manage to call something twice the price affordable. I call it (BORRIS RENT) so people relate better to it.
I rent a housing association 1 bed for £220 at newly created (affordable rent) a month but previous tenants paid £110 at (social rent). BORRIS doubled the price literally. BORRIS is after all the land lord class, what does he know about working class.