Advanced Property Training Freehold To Leasehold Title Splits

Hi Everyone,

I hope you had a great weekend.

On Saturday 14th April 23, I attended some online property training given by Andy Haynes who is a lead trainer with Simon Zutshi´s Property Investors Network about Freehold to Leasehold title splits.

It is a property strategy that Andy has successfully used over a number of years, since around 2014, I think.

Andy described a number of case studies where this strategy has been implemented by himself and other people, and the indicative level of profitability, which was pretty good.

This strategy does not require a large amount of work to be done to the properties in order to carry out the freehold to leasehold title splits. Essentially this work is mainly formalising the legal status of flats that are already completely separated.

Sometimes a light refurbishment may also be carried out, so there is a cosmetic uplift to the value of the properties being split.

So in terms of the planning permission and building control permission, this has already been granted and all necessary physical works for separation of the living spaces demises and their own separate utility supplies has all been completed by someone else.

There are many such properties around, and the other thing to do is to check that the sizes of the residential units to be split are more than the minimum space standards. If a property does not exceed 30 Sq M. then it is not mortgageable. The other relevant minimum sizes are 37 Sq M for a one bedroom flat, and 50 Sq M for a two bedroom flat.

If the prospective buyers of the split units cannot get a mortgage on them, then this strategy will fail.

So, in a nutshell, the strategy is to acquire buildings that are capable of separating their legal demises, the physical works already having been done - is that simple!

Typically this works out to be a profitable strategy provided that you can purchase the freehold of the original block before title splitting at approximately 75% of the forecast sales price of the sum of the residential units being split.

I have added this strategy to a small number of property strategies that i am pursuing in earnest.

This strategy can work more or less anywhere in the world, provided that the legal system applicable to that country allows it to happen, the individual flat demises being separated from the whole, and the legal ownership allowed to change.

I wish everyone a very happy weekend, wherever you are in the world.

Cheers

Alan