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Telometer

Btl Bought On A 1.9% Gross Yield. Big Bath Coming Up...

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Sold House Prices for REDMANS ROAD

103 Redmans Road, Tower Hamlets, London, Greater London, E1 3DB £335,000

Terraced Freehold Not New Build Sale date: 21-Jun-2007

Tenancy

The Receivers understand that the property is subject to a Tenancy at a current rent of £540 per calendar month. The Receivers further understand that the Tenancy expires in July 2009.

Current Rent Reserved: £6,480 per annum

What price do we think this will be estimated at - Allsop lot 9 3 bed house, with rent of £540 per month in inner London - serious bargain rental territory.

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Sold House Prices for REDMANS ROAD

103 Redmans Road, Tower Hamlets, London, Greater London, E1 3DB £335,000

Terraced Freehold Not New Build Sale date: 21-Jun-2007

Tenancy

The Receivers understand that the property is subject to a Tenancy at a current rent of £540 per calendar month. The Receivers further understand that the Tenancy expires in July 2009.

Current Rent Reserved: £6,480 per annum

What price do we think this will be estimated at - Allsop lot 9 3 bed house, with rent of £540 per month in inner London - serious bargain rental territory.

Hi Telometer,

Is that a regulated tenancy?

If Assured Shorthold, then I suspect a 5% - 6% gross yield giving a vlaue of around £100k??

Although, this two bed flat in Croydon is on guided to give a GRY of 9%

Flat 17, 80 Park Lane, Croydon

M21er

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doesn't say regulated tenancy but maybe there are problem tenants in there?

LHA on 3 bed in that area would be £350 per week I think and no shortage of large family benefit claimants around there.

335K would give about 5% yield on LHA rates which some seem happy with.

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doesn't say regulated tenancy but maybe there are problem tenants in there?

LHA on 3 bed in that area would be £350 per week I think and no shortage of large family benefit claimants around there.

335K would give about 5% yield on LHA rates which some seem happy with.

so LHA allowances keeping house prices up.

:ph34r::ph34r:

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If it was a regulated tenancy then it wouldn't be expiring in July 2009. AFAIK the only way a regulated tenancy can "expire" is if the tenant dies, and even then it can be passed on to any next of kin who were also living in the property at the same time.

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If it was a regulated tenancy then it wouldn't be expiring in July 2009. AFAIK the only way a regulated tenancy can "expire" is if the tenant dies, and even then it can be passed on to any next of kin who were also living in the property at the same time.

Hi

You're right - it does expire in July 2009 and so can't be regulated

I hadn't looked at the Lot Details as no link. I only wondered if it was Regulated as it seems a low rent?

Wonder why they didn't wait for the tenancy to end and then sell?

M21er

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I asked this on another forum but no replies yet. If you buy that place mostly with debt - shouldn't the cost part of the equation include your interest payments ? It seems the normal yield calculation is based on cash buyers.

You buy it for 335k, say this is at 6% over 25 years. The cost is actually 670k.

Anyone care to enlighten me ? Surely the cost part of the calculation has to be a personal cost - whether leveraged or not ? It will be very different for different people.

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