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

rrwfotr

devils_advocate wrote:

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!

Thanks do the dependants have to be living in the property with the tennant? Or can they pass it on when they want etc ....

devils_advocate

rrwfotr wrote:

Thanks do the dependants have to be living in the property with the tennant? Or can they pass it on when they want etc ....

I think that they have had to have been living in the property at some time, but as to the actual rules I don't know. If you are seriously considering this route, you will need advice from a lawyer specialising in this area, as if you get it wrong you could end up with a low rent and no possession, with the obligation to do repairs and upgrades to the property for 40 years!

IN terms of risk, this appears to me to be a worse investment than you going to the bookies and putting all your spare cash on the nose of the second favourite in the 2.45 at Plumpton today.

rrwfotr

Yep I think the key thing here is the do your homework first and then look into these these sort of properties. Def not one for a first time buyer. Thanks for all your input chaps!!!