Devaluation of property with assured tenant

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  • Devaluation of property with assured tenant

    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.
    All posts in good faith, but do not rely on them

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  • #2
    I would want at least 40 - 50% discount in this situation!







    **** THE DAMMED ****

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    • #3
      Would an assured tenant devalue that much? You still should get market rent unlike a rent act tenant.

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      • #4
        Whats the rate for a rent act tenancy then?
        All posts in good faith, but do not rely on them

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        • #5
          Originally posted by Bel View Post
          Whats the rate for a rent act tenancy then?
          Low.

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

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          • #6
            Originally posted by Colincbayley View Post
            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.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

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            • #7
              Originally posted by jeffrey View Post
              Depends. Low price may be counterbalanced by hope that property will eventualy fall vacant.
              True!

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              • #8
                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.
                The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

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                • #9
                  Assured Tenancy

                  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

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                  • #10
                    Needless to say it depends on the property...3 or more Students on a Joint and several Assured would not devalue a property...........
                    "Better an empty property than a tenant without a guarantor"

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                    • #11
                      But the mere presence of students could well devalue its fabric and structural integrity!
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment


                      • #12
                        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
                        OutRentHome.com the Home You Want, the People You Want

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                        • #13
                          Originally posted by rinomanfroni View Post
                          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.
                          The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

                          Comment


                          • #14
                            Wickerman and others;
                            I would be grateful if you could contribute to my thread in finance on valuing a half share in an investment.
                            All posts in good faith, but do not rely on them

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