Are Blocks of Flats a good investment?

Are blocks of flats a good investment? It’s a fairly subjective question. Like most property, if you are in it for the long haul, then chances are your investment return will far exceed any short-term returns you might have had should you sell early. Blocks of flats (sometimes known as multi-unit freehold blocks) have much higher average yields than other property, getting finance for them is just as obtainable and Buildings Insurance for Blocks of Flats is also easy to purchase with greater level of discount available. Seems like a no brainer if you have the funds. Let’s have a look at yields, finance and buildings insurance for flats. First, what is a multi-unit freehold block?

Multi-unit Freehold block

This is defined as multiple, separate, independent residential units which are held under one single title. These would include:

  • Blocks of flats which are purpose built
  • Blocks of flats which have been converted from a house
  • A number of residential units or houses held under the same single title
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Yields

Yields from last year tended to be at least 1% more than for a standard buy to let property. Granted there may be more AST Agreements in place than for a single-family living in a house, but this is good news for investors.  During the first quarter of last year, the yield was nearly 1.5% more. This is substantial if you are in it for the long term.

Finance

Blocks of flats finance certainly isn’t difficult although the rate may be slightly higher than a standard house for example. This wouldn’t put off the most experienced investor due to previous experience with yields and a potential high sale value further down the line. Blocks of flats are normally in developed or developing areas – chances of picking one up and that urban area sprawling out even further, then chances are that area will be in more demand than when you first purchased it. When things are in high demand, their stock goes up. This is what long-term investors bank on.

Buildings insurance for Flats

Buildings insurance for flats is sold widespread and is a huge market within the UK Insurance Industry. Converted flats have been a huge market for insurers for the past 20 years as there are now many older houses with substantial square footage that enable a conversion to be an extremely feasible proposition. Converting a house into 3 different units can increase property owners rental income and vastly! Rates for such properties are competitive, as to with purpose-built blocks of flats insurance policies. Purpose Built Blocks of Flats are now more often constructed with concrete floors, which can lead to even greater rating discounts due to considerable decrease in risk from the effect of Fire or Escape of water for example.

Property Insurance Centre Building Insurance for Flats

Property Insurance Centre Blocks of flats insurance policies can cover both converted houses and purpose-built blocks of flats. Many of our policyholders purchased houses and converted them to flats, as our policies allow for construction works to take place up to generous limits and also allow for periods of unoccupancy. This allows for policyholders to take out one single policy instead of having to take out two – one to allow for the works and after the works finish a second policy taken out for when it becomes occupied. Property Insurance Centre Blocks of Flats Insurance policies are flexible and modern – the way the modern investor needs them to be.

If you have an empty block of flats being converted or a purpose-built block of flats and require buildings insurance for flats then give us a call. We will find the right policy at the right premium. Call us on 0800 085 3761 or fill in an online form.

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We can tailor your policy to suit your exact needs to give you complete peace of mind

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Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Why choose the Property Insurance Centre

Independent broker with staff you can speak to by phone or online

Access to a wide range of insurers to source suitable insurance cover for your needs

Bespoke Insurance Schemes & Portfolio Policies available

We can tailor your policy to suit your exact needs to give you complete peace of mind

Competitive Premiums

Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Why choose the Property Insurance Centre

Independent broker with staff you can speak to by phone or online

Access to a wide range of insurers to source suitable insurance cover for your needs

Bespoke Insurance Schemes & Portfolio Policies available

We can tailor your policy to suit your exact needs to give you complete peace of mind

Competitive Premiums

Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Specialists in Commercial & Residential Insurance

We have over 40 years experience as Residential and Commercial Insurance Brokers. We find the right policy to suit your needs and understand the risks that a property owner can face in the course of ownership. We work closely with our Insurers to get the best rates and our experience and excellent relationships with them mean that we can provide cover for even the most difficult to place risks.

Whether you have an adverse claims history, a high value property or a large portfolio of properties, we can source suitable cover for you. Whatever your requirements, we can tailor a specialist property insurance policy to suit your exact needs and provide you with a range of quotes to choose from. Established in 1976, we are not a call centre but a specialist insurance broker with a traditional office mentality, where the client comes first.

Looking for a quote now? Give us a call on 0800 085 3761 or complete one of our quote request forms.

We are also authorised and regulated by the Financial Conduct Authority and you can view our registration here.

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