sales valuation for BTL investor?

[propertymagnatedreamer]

I have a 2-bed flat in West Yorkshire newly tenanted at £420 pcm (housing benefit single mother of 2-year old).

Service charge and ground rent = ~1300 pa

There's a nursery and primary school right around the corner so tenant could be there long-term (e.g. 10 years while child goes through school)

First question: How attractive is having a potential long-term housing benefit tenant to a potential BTL investor?

Second question: What is the yield calculation or key considerations for a BTL investor to decide on what price they would pay for the property?

thanks

 

[totallyproperty]

Hi @propertymagnatedreamer welcome to the forum

Are you looking to set a sale price taking into consideration the potential long term tenant, as opposed to simply considering Yield (where 6-7% would be attractive I would say)?

 

[propertymagnatedreamer]

I was wondering if having the new tenant paying £420pcm (housing benefit) would help find a buyer as they could take on the property with that existing tenant.

 

[totallyproperty]

I was wondering if having the new tenant paying £420pcm (housing benefit) would help find a buyer as they could take on the property with that existing tenant.

I would say a tenanted property is far more attractive to a buy-to-let investor than an untenanted one. I would promote the property as a Buy-to-let investment myself, rather than a standard sale, as you're far more likely to attract the right type of buyer, ie. I would list it on Linkedin property groups, Facebook property groups, and market it to include Yield and ROI (key factors investors would want to know).

 

[realdeals]

You might find this article of interest:-

https://www.propertyforum.com/property-in-the-uk/official-property-prices-influenced-nearby-schools.html