rjmahan Posted February 15, 2018 Author Share Posted February 15, 2018 True - I see your point about tax changes under Labour - equally longer leases could make these long leases relatively more attractive. I know for a fact investors in this area have made very good returns. Although I am from far away I live in Sheffield. Lots of absent landlords in this area... Out of interest property is here - sold for £35k and not to me. http://www.rightmove.co.uk/property-for-sale/property-71162138.html Link to comment Share on other sites More sharing options...
poppet2 Posted February 25, 2018 Share Posted February 25, 2018 I do BTL, and for a few years, but I especially avoid buying properties with Tenants in-situ. I avoid this because I do not want to step into the existing Landlord's shoes and take on their AST, etc.. The existing Tenant is under no obligation to sign a new agreement with you as incoming Landlord (although you can obviously negotiate this). But if the existing tenant is under no obligation to sign a new agreement, when their AST comes to an end,you will have what you want and can seek new tenants of your choosing. What problems do you envisage if you take on another landlord's AST tenants when the AST will finish in just six months? Link to comment Share on other sites More sharing options...
rjmahan Posted February 25, 2018 Author Share Posted February 25, 2018 These are not ASTs. They are tenancies dating from the 1970s or before. I can't easily evict, I am not responsible for the internal condition of the property other than making sure it is watertight, safe and plumbing works. One of mine pays a reduced rent that I can only increase at inflation. The upside of this is you get higher yields and possibly a property you buy at 30k might be worth 60 when the tenant passes away or moves. Link to comment Share on other sites More sharing options...
Hippogriff Posted February 25, 2018 Share Posted February 25, 2018 But if the existing tenant is under no obligation to sign a new agreement, when their AST comes to an end,you will have what you want and can seek new tenants of your choosing. What problems do you envisage if you take on another landlord's AST tenants when the AST will finish in just six months? If it was an AST, we learned it wasn't from the OP, then a SPT automatically arises at the end of the fixed term anyway, with the same terms and conditions. I prefer to use my own AST from the outset, hence why I prefer properties that are unoccupied. Link to comment Share on other sites More sharing options...
poppet2 Posted February 25, 2018 Share Posted February 25, 2018 A 1977 Rent Act tenancy. You can't even set the rent, as rent Assessors do that and in many cases the rent can be less than council rent. Even when the tenant dies, any relative who has been living there for two years can take on the tenancy as a Assured tenant indefinitely. A good investment for your grandchildren to inherit many years down the line if they are prepared to wait that long. Most people want their property profits to work for them ASAP, then move on to the next one for maximum profit now. Link to comment Share on other sites More sharing options...
rjmahan Posted February 25, 2018 Author Share Posted February 25, 2018 I bought one. For 37k (inc fees) I get £3848 a year. Soon to rise to hopefully just over 4k (rent assessor permitting). I have to maintain the building. and pay tax on the £3848. If/ when tenant moves out / dies I get a house worth hopefully £50-60k, though pay CGT on the gain. Tenant will never move out - they would pay more in a council house - plus have lived there 30+ years so why move now ? The assured tenant pays a market rent but will have to maintain the decoration etc themselves so it isnt that attractive.... It is very much intended as a long term investment. If I hold it 15 years they pay for the house (after tax and likely bills). I then of course still have the house. This assumes no rent rises.... I wanted it for the income - to go towards replacing my job. Link to comment Share on other sites More sharing options...
poppet2 Posted February 27, 2018 Share Posted February 27, 2018 I bought one. The assured tenant pays a market rent but will have to maintain the decoration etc themselves so it isnt that attractive.... You will have a sitting tenant who can reside there even when you decide to sell. This will reduce the selling price by as much as 50%. The Assured 1988 tenant has considerable rights and can also remain in the property until they die. Link to comment Share on other sites More sharing options...
rjmahan Posted February 28, 2018 Author Share Posted February 28, 2018 But if you buy at a 50% discount does it matter ? Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted March 4, 2018 Share Posted March 4, 2018 The Assured 1988 tenant has considerable rights and can also remain in the property until they die. If you mean a Housing Act 1988 tenant: no. L can use s.8 or s.21 rights, as applicable, to seek possession. Link to comment Share on other sites More sharing options...
rjmahan Posted March 4, 2018 Author Share Posted March 4, 2018 Surely no S.21 as it is assured not shorthold assured ? Link to comment Share on other sites More sharing options...
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