Sitting tenant - regulated tenancy question/views????

shammyjack

rrwfotr wrote:

The local authority are usally in on the "system" (i.e not setting the rents to PROPER MARKET RATES), because if a evition nottice is served the tennant will go cap in hand to them asking for state handouts. It seems a big scam really. Feel sorry for the landlord really as they have to keep the up keep of the property for peanuts in rent.

After his bullyboy tactics failed the extra £40,000 he had to pay in commpensation probly equated to the freehold market price of the property .

Greed while failing to take into account the life and feelings of others while in pursuit of financial gain can end up time consuming , stressfull for all concerned and expensive .

Must you have this house at all costs even if this includes devastating someone elses life ?

Loads of freehold preoperties out there, get on yer bike !

shammy

deary65

And if you don't get the tennants consent,under sec 40 LPA,you could end up with no rent and the tennant claiming title after 12 years.
Defination of rent:
rent issues from the land,more over it is in the absolute ownership of the tennant untill such time as it is due for payment.Such payment must be made to the legal landlord,i.e.the person with whom they have an agreement.or his agent thereonto lawfully authorized.
STAY CLEAR! Or take good legal advice.

Natelle_2

rrwfotr wrote:

I was allways told that profit was the reward of risk.....

rrwfotr

I'm a bit confused here!

You started off by saying

My situation is that I’m a FTB with spouse who wants to buy the place to live in, we are currently renting a small one bed flat but wish to start a family in the near future? I’ve been told that it might be quite hard to evict the individual. I was just wondering on people's views that may have been in my situation in the past. Is it worth is the aggravation? If I purchase the place is there a good chance I could evict the person due to my circumstances?

and then you say:

Hmm the reason why im intrested in this property id becuase of the loaction. Seems silly that people have these regulated tennacies which they pay next to nothing rent when the set of us suffer.

Are you looking for a home for yourself, spouse and family in the near future, in a favourable location, or are you just after making a quick profit?

rrwfotr

Natelle wrote:

rrwfotr

I'm a bit confused here!

You started off by saying



and then you say:



Are you looking for a home for yourself, spouse and family in the near future, in a favourable location, or are you just after making a quick profit?

Like every one I'm looking for a good long term investment, something that will go up in value in the future. If I can get a property that is lower than the market rate then obviouslly that would be a bonus. But if you dont risk anything in life you wont gain anything either really. But then on the other hand you could lose allot, thats all really.

Loretta

The reason this property is cheaper than the going rate is because there is a sitting tenant who cannot be removed, even Hoogstraten had his comuppance in the end. This is not a purchase for a first time buyer who needs somewhere to live, it is an investment for someone who has money to spare now and is looking to the long term furture. Don't be silly, no one is depriving you of anything this house is not a suitable purchase for someone at your stage in your life, go and find a property that is. You think you are being clever but you are just being silly

Innys

I don't understand why the OP is so keen on this property, especially given the state of the current housing market.

Yes, it's got growth potential and is cheap. However, the price reflects the sitting tenant position.

If the OP had bought a house, rented it out and THEN had the misfortune of sitting tenant, I would have had more sympathy. This is the current position of the seller.

On the other hand, the OP wants to buy at a cheap price AND avoid the inconvenience of a sitting tenant - smacks of cake and eatin it to me.

With respect to the fairness or otherwise of the respective rights of sitting tenants and landlords, I would say they are largely irrelevant here because the OP knows the situation in advance.

In my view, the OP should look elsewhere if they want a hassle free purchase. If, on the other hand, they fancy a gamble, go for it. However, I, like most existing landlords, would avoid this type of property.

mystic_trev

rrwfotr wrote:

I was allways told that profit was the reward of risk.....

Go on - buy it.

Then you'll understand what RISK really means!

rrwfotr

mystic_trev wrote:

Go on - buy it.

Then you'll understand what RISK really means!

I don't undersand this comment this is just a forum to air peoples views.

Ian_W

rrwfotr wrote: I don't undersand this comment this is just a forum to air peoples views.

That's all Trev is doing ... but I agree with Inny's that you want your cake and eat it!!

Buy it, if the tenant slips off the plate, goes into residential care or decides to move on you've taken a risk and will be rewarded with a handsome profit. However if none of those happen anytime soon you'll get the other "reward" for risk - a loss! Point about risk is that it doesn't always result in a profit, otherwise it wouldn't be a risk, it would be a dead cert.

May have been unfair to the owner at the time the regulated tenancy was created but there's nothing unfair to you. You know the property is being sold cheap because it's got a problem, if the current owner could rectify that problem the price would be much higher. Either take a gamble on it, or don't - Your Call - but IMO as a potential FTBer you'd be much better using your money to that end than a speculative 1st time property venture.

Final thought, how would you finance it? With a regulated tennancy it wouldn't normally, as far as I'm aware, meet the lending criteria for most BTL mortgages - unless you've a very large deposit to put down!

devils_advocate

General rule of thumb, to which I'm quite open to correction, is that a property with a sitting tenant will be worth around 50% of open market value.

So if you think you are buying it for about half price, its actually about market value. Don't forget that regulated tenancies can also be passed on to dependents, so if the 80 year old tenant has a 40 year old kid living with them, dont assume that the tenancy will be given up anywhere before 2050!

p.s. its not going to be 'quite difficult' to evict the tenant. Its a lot safer to assume its going to be impossible!