Buy-to-Let - flat vs house

[arielmanto]

We're ready to make our first BTL purchase and we had always focused on it being a house. Where we live (SW) our budget does not stretch to this so we have been looking further north, where my wife's family live.
Recently we've realised we could actually afford quite high standard one bed flats near us, which would have same yield (slightly more, but same once ground rent / service charge taken into account).
I'm well aware of the PITA reputation of being landlord of a flat - people on the floor above leave the bath running and flood your place; freeholders putting up the ground rent, committees not agreeing on how to spend the service charge.
But bearing in mind pretty much my whole experience of life so far has been that it tends to be a pain in the ass whatever you do, and at least we would be nearby if we bought down here - what are your opinions?
Have any of you done the investment flat thing and regretted it enormously?

Based on my experience, I'd go with a flat that is at least a few years old in a biggish block. I'd like to see that the building is well managed with a sinking fund and a good track record in building management. I think there are advantages to flats too - e.g. no garden or roof to worry about (and the obvious disadvantages as well).

Having said that, have you done your numbers? Taxes etc? It doesn't make sense for most these days.

If you are planning to have agents fully manage the flat it doesn’t matter if you’re based further away. Are yields better up north?

I would think very hard about buying a leasehold flat. Service charges can suddenly shoot up and you’re hit with a bill for £££s that is due immediately. If you have a shortish lease you may have to extend soon. Also be wary that in the light of Grenfell some tower blocks have potentially dangerous cladding and are difficult to mortgage.

IME it makes a bit of money but it isn’t a get rich quick scheme and even if you have agents you still need to know your legal obligations/ensure the agents aren’t ripping you off/do your accounts and tax returns. It’s not a hands off investment, more like a tiny business.

I've been letting flat for a few years now, and the house I used to live in for the past 2 years. I pay a monthly fee to agents who manage the lets - ensure all legislation is complied with, arrange for repairs to be carried out, communicate with tenants etc. The flat is one of 6 in a close and is factored, so common repairs and maintenance are dealt with by them with routine stuff being included in the set fees, and any additional works being split 6 ways.

For me, there has been no difference between letting a house and letting a flat. However, I wouldn't want to let a flat if there wasn't a factoring arrangement in place.

I am a b2l LL and have 6 houses. 3 x 2 bed and 3 x 3 bed. I would never buy a flat because of leasehold. I always buy freehold. I have heard of friends flats having high maintenance charges. The main problem though with a flat as far as I am aware is you are more likely to have a higher turnover of tenants come and go in a flat. As a couple have children they usually want a bigger property with a garden. I like to let to families with young children as they tend to look after the property well and regard the house as their home, especially if they live there for many years as most of my tenants do. Also flats are harder to sell according to an estate agent friend of mine as less demand for them. I would advise saving up some more and going for a house. Also it is always far better to have a property near to where you live or you have someone you trust who can go in each time you are informed of a fault or issue. EG if s washing machine breaks the tenants will need a new one the next day not wait for a week or two until you can go and then organise another one. All of our properties are within 3 miles of our own home.

OP you will also need to make sure you comply with all legislation which also changes constantly. It is your responsibility to make sure you keep up to date as you can be fined huge amounts for non compliance and not knowing is not acceptable as excuse.