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Bel
19-02-2008, 09:01 AM
I read on the forum that assured tenant in situ devalues property.
Someone mentioned 50 % of value ?? Is this accurate?

Thoughts please on what is the going rate of devaluation for assured (SAT) tenant in situ.

Colincbayley
19-02-2008, 09:03 AM
I would want at least 40 - 50% discount in this situation!







**** THE DAMMED ****

ah84
19-02-2008, 09:25 AM
Would an assured tenant devalue that much? You still should get market rent unlike a rent act tenant.

Bel
19-02-2008, 09:29 AM
Whats the rate for a rent act tenancy then?

Colincbayley
19-02-2008, 09:32 AM
Whats the rate for a rent act tenancy then?

Low.

But more to the point, is it worth the grief?

jeffrey
19-02-2008, 09:34 AM
Low.

But more to the point, is it worth the grief?
Depends. Low price may be counterbalanced by hope that property will eventualy fall vacant.

Colincbayley
19-02-2008, 09:36 AM
Depends. Low price may be counterbalanced by hope that property will eventualy fall vacant.

True! :rolleyes:

Grange
19-02-2008, 09:37 AM
Depends on the property and the location and the age of the tenant and how close the fair rent is to the market rent. Oh yes, and what the housing market is like to.

If you guess at 50% for a Rent Act tenant you won't be a million miles away.

magnaman
19-02-2008, 15:13 PM
We will pay up to 70% of VP depending on age of tenant/s, location etc

Call me - 0845 257 0170

Will pay 1% of purchase price to introducer's and minimum of £1000 plus VAT of lawyers fees

Very quick completion

No hard sell - with free appraisal and no obligation

Sportingdad
19-02-2008, 15:33 PM
Needless to say it depends on the property...3 or more Students on a Joint and several Assured would not devalue a property...........

jeffrey
19-02-2008, 15:35 PM
But the mere presence of students could well devalue its fabric and structural integrity!

rinomanfroni
20-02-2008, 11:05 AM
Usually buyers want to see at least the 5% of the property value back from the rent they earn every year. In your case, someone investing in your property will do that because he/she is interested in making sure these money get in their pockets after they buy the property. It's a classic buy-to-let scheme.

So, if you consider that it takes 10 years to cover half of the cost of the property, and you sell your house/flat for 50% off, that means the new landlord will virtually see his mortgage paid off in 10 years by using the rent they receive from the tenants, which sounds quite like a big deal for the buyer.

If you let your buyer know this, you could still haggle on the price of your property, by providing good tenants' history, on-time payments etc.

Take care and good luck!

Ryan

Grange
20-02-2008, 16:09 PM
and you sell your house/flat for 50% off, that means the new landlord will virtually see his mortgage paid off in 10 years by using the rent they receive from the tenants, which sounds quite like a big deal for the buyer.

You have completely misunderstood this for the new L is likely to see rents of "50% off" (sic) too - hence the investment is no better than any other.

Bel
21-02-2008, 08:26 AM
Wickerman and others;
I would be grateful if you could contribute to my thread in finance on valuing a half share in an investment.