Most agents will be familiar with selling a property that comes with a sitting tenant.
But what about a tenant that pays no rent?
That is the proposition on offer from Leaders.
The agent is marketing a semi in St Albans, Hertfordshire, for £350,000.
It comes with a driveway, garage and three bedrooms plus the non-paying tenant, aged 64.
The description from Leaders said: “Calling all investors!
“Leaders is pleased to bring to the market this extended three bedroom semi-detached house with garage and driveway.
“The current vendor would like to remain at the property rent free as a long term tenant.”
Properties in the same postcode seem to sell at closer to £500,000.
Mark Rowe, managing director at Rowe Property Services, said: “At first glance, it looks as though the owner would like someone else to take the strain of the property ownership and mortgage off their hands, in return for living there rent free … how appealing.
“Delving deeper, it seems as though the marketing price is cheap, as the majority of properties in that road seem to go for at least £100,000 more.
“However, there are no internal images, so the interior could be awful.
“The only benefit I can see for an investor is the fact that it would be classed as tax neutral, as there’s no income, so you wouldn’t pay any tax on no income, but why would you invest with no return?
“Could it be because there’s the element of buying this house at a largely reduced price, with the option of selling at a later date, perhaps?”
Vendor Peter Yielding said he has already received two offers.
https://www.mirror.co.uk/news/uk-news/man-gets-two-offers-bargain-14312650
Comments (6)
The asking price is too high.
It can only be brought for cash.
I think a landlord would have to be under 35 for it to work, or planning to leave the property to their children. (He is not old enough)
A small “rent” that covers all repair costs etc, would make it much more likely someone will consider it.
This would become a statutory tenancy and with the declared age of the tenant should have a value of less than 50% of VP.
If he lives more than about 6 more years, unless there’s a boom, the price reduction will be eaten up. Surely he’d be better advised to do an equity release thing?
Feel a bit sorry for him.
Surely though he would only be entitled to a 1988 Housing Act tenancy (AST ) so any buyer could just serve S21 to end the tenancy, assuming S21 is still around! Almost as if this chap knew what government had up their sleeve….
He will no doubt intend to have a life tenancy. It is not mandatory for a tenancy to be an ast.
It will have a value based on mortality tables but the purchaser will need to ensure no transfer or succession rights, Repairing and running costs insurance etc so a massive discount would be necessary nothing like that suggested by the asking price!