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Apartments and recycling deposit

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I have a small number of BTL houses and so far I have managed to add value and pull out most of my cash as I have gone along.  I'm attracted to investing in apartments as the maintenance requirements seem generally lower and I have found some deals that seem to offer good returns.  However my concern is how I can uplift the value in order to refinance and get my deposit back out.  I can see it could be done with reconfiguring a 1 bed to 2 or extending the lease but with a newer build property even buying BMV I presume I would be waiting for the uplift in the general market?  Am I missing anything here?




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Hi Steve,


It can depend on a certain extent on the area where you invest. One option though might be to invest in freehold blocks of multiple units, particularly if they are run down. Someone I know well bought a converted block of run-down 4 x 1-beds last year, refurbished them and turned them into 4 x very nice 2-beds, split the title to create 4 leasehold units and sold the flats individually, also selling the freehold. The net profit was somewhere in the region of £110k if I remember right.


The Other Half (husband David) and I have a block of 5 x mixed 2- and 1-beds that we gutted and refurbished a few years back, and we rent them out. They're a single freehold at the moment, and we haven't created individual leaseholds because where we live, there's still not yet enough of a differential in the value of flats to make it worthwhile. Maintenance is reduced to an extent,. We still occasionally have individual problems within the flats themselves.but there is only one exterior area to deal with.



Jayne Owen

Editor: Your Property Network magazine
Investor: Mozaique Property, South & West Wales

Editor: The Property Bookshop (@Property_Books)

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