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Good idea to buy and let small flat with tenant?
quatro
Posts: 197 Forumite
I have the chance of buying a very small studio flat [living room/bedroom/kitchen and bathroom] which is one storey in a courtyard, freehold.
It needs nothing doing to it, is modern, good fittings, smart and tidy, self contained and there is a tenant in it wanting to stay and continue paying £300 p.m.
I could probably get it for £46k, with a small mortgage of £25k and deposit of £21k.
Good investment? or not?
Mortgage would probably be £90 per month, and the £21k deposit would only bring in about £80 p.m. max. in a fixed rate savings account.
However I would like to meet the tenant before making a decision - is this in order?
Views welcome!
It needs nothing doing to it, is modern, good fittings, smart and tidy, self contained and there is a tenant in it wanting to stay and continue paying £300 p.m.
I could probably get it for £46k, with a small mortgage of £25k and deposit of £21k.
Good investment? or not?
Mortgage would probably be £90 per month, and the £21k deposit would only bring in about £80 p.m. max. in a fixed rate savings account.
However I would like to meet the tenant before making a decision - is this in order?
Views welcome!
0
Comments
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You can ask. It's really up to the tenant.
(S)he is entitled to 'quiet enjoyment' in his/her home, so can refuse both the current landlord and you access. On the other hand, (s)he might welcome the chance to meet the the landlord!0 -
What type of lease is it, just make sure it's a SAT and you can't really go wrong.
Make sure you ask the seller relevant questions though regarding the tenant, arrears, behaviour etc. You don't want to be getting stuck with a pro tenant you can't get rid of.0 -
A "SAT"???What type of lease is it, just make sure it's a SAT and you can't really go wrong.
Make sure you ask the seller relevant questions though regarding the tenant, arrears, behaviour etc. You don't want to be getting stuck with a pro tenant you can't get rid of.
Asking the seller is unlikely to reveal a 'pro tenant' - he'll hide behind legal niceties rather than reveal and lose his sale. Insist on paperwork: contract, deposit, acounts etc.0 -
AST?
Freehold flat, how does that work. Is it easy to get loans on those. Do you still have to pay maintenance?
Presumably you'll manage it yourself so no letting agent fees, do you know the ropes?
Ah post 2 here is helpful:
http://www.houseweb.com/forum/showpost.php?p=3084&postcount=20 -
Sorry a SAT is a Short Assured Tenancy in Scotland, same as your AST. The seller can't lie about the tenant or he is misleading the OP into the sale. If there are problems he would have to declare them if asked. He may refuse to answer the questions, but he can't lie to secure a sale.0
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