For you this Friday I have an apartment in Northampton for sale that may be a potential gold mine to add to your portfolio. There is some factors that require further investigation before you should commit to any purchase such as the terms to renew the lease, but first lets see what the agent has to say about it:
“CASH BUYERS ONLY: Offered for sale with tenant in situ currently paying £550 PCM is this duplex studio apartment which is located within the Town Centre. The property is an ideal investment. The accommodation briefly comprises of: communal entrance to the front of the building, or a gated secure private entrance to the rear of the apartment which leads into a fitted kitchen/diner which leads into the hallway, fully fitted shower room with stairs rising to first floor landing, door to lounge/bedroom. Benefits include gas radiator central heating, Upvc double glazing, built in oven and hob. The property is offered with no chain and is in good decorative order.”
The property is on the market with Harrison Murray which also has listed some information on the lease and service charges, see below:
Tenure: Leasehold. Local Authority: Northampton Borough Council. The agency website indicates tax band A. Lease details TBC. Energy Rating D. We have been informed by the vendor there is currently 87 Years remaining on the lease, the service charge is £600PA and ground rent £100PA. We have not seen documentation to support these details.”
From the above information from the agents, we can see that there is good potential however please do your research.
Bearing in mind that this is cash buyers only, so this may limit some people, but lets discuss rental figures.
The property is currently let with a tenant in situ for £550 pcm and the property is on the market for £59,900. Based on a purchase at this price alone and not the consideration of having to renew the lease, you would be achieving a yield of a massive 11% which is a great investment in Northampton.
If and when the lease needs renewing of course this would change based on the cost to renew, but for figures sack based on information we are given currently, you can see the potential here.
When purchasing a property that has a tenant in situ, this can be a great opportunity to have a cash flow from the moment you receive the keys.
It is important to ensure that you have a good team around you to ensure the transfer of tenancy agreement to your name as the new landlord is handled correctly and professionally so this process is as smooth as possible and that is where Northwood Northampton Ltd can be of great service to you.
To view this property here is the link: https://www.rightmove.co.uk/property-for-sale/property-50038392.html
If you have any questions regarding the process of purchasing a property with a tenant in situ, Northwood can be of great help to guide you through the process and help you understand how it all works. To discuss this please call the office on 01604 607080.