I’ve been offered a house well under market value, but it has a tenant who has lived there since 1992 on a regulated tenancy. She is only paying £225 rent per month, if I bought the property would I be able to evict her or not?
The regulated tenancy could not have started in 1992 because the last date for legally commencing such a tenancy was 31st December 1988. ASTs superseded them from that date onwards, which means that either:
If this is a regulated tenant:
These properties have been regularly bought and sold over the last 20+ years, mostly at auction - and the going rate is no more than 50% of the true market value of similar properties without the tenant restriction
The buyers of such properties are cash rich and intend to play the long game, using the property as an alternative place to park some of their cash. They are fully prepared to wait until the tenant dies, or goes into care, to realise their profit
No mortgage lender will touch these properties with a barge pole. This is strictly cash buyer only territory.
If you plan to go ahead and buy then you should also check that there is not someone who will inherit the tenancy too.