25 year housing association lease?
Hello everyone, I have come across a rental deal where you buy a property with a 25-year lease attached to the property.
The property will be leased to a housing association, which will be the head tenant. The housing association then houses (sublets) to people who require assistance for day-to-day living.
The rental amount is high, and after the property has been taken over by the housing association, all the costs are borne by the housing association, and you receive the agreed rental amount every month.
Has anyone invested in such a property deal and do you have any feeback?
Many thanks
Dilip
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Member Since May 2015 - Comments: 4
11:04 AM, 9th September 2026, About 51 minutes ago
No I haven’t but this sounds perfect to me. All the rental but no tennant hassles.
On first glance, I would snap this up but would like to read the fine print.
Member Since September 2026 - Comments: 1
11:04 AM, 9th September 2026, About 51 minutes ago
If it sounds to good to be true… it probably is. If you’ve seen it on FB proceed with caution. Only way to know if it’s genuine if you publish the name of the company advertising such a deal.
Quite often these “middlemen” do pay you the advertised rent for 6-12 months to build up your confidence, then the go off into the sunset
Member Since January 2016 - Comments: 479
11:23 AM, 9th September 2026, About 32 minutes ago
With anything like this I always look at the fundamentals. If the housing association and its tenants vanished into insolvency and you were left with the empty property,
1) Do you have something that you could ultimately let yourself? For example do you have some weird fractional ownership like a timeshare or something where the communal parts are no longer managed and the building of which you have a small part has no management and a legal limbo? For example if you owned a room in a hotel/care home you depend on the rest of the hotel still functioning and if it doesn’t you are stuffed. Conversely if you were buying a freehold house it would be simpler manage yourself if it came to it.
Secondly, assuming it’s a normal property, what is it worth on the open market and what would its open market rent be? Ie are you paying a premium for the property and is the rent inflated? If those numbers are distorted it could catch you out. Ie the housing association vanishes and you can only achieve half the rent they were paying.
3) If you had to exit can you sell the property on the open market (more likely auction) with no interference from the Housing Association? Some places have clauses where you can only sell back to the association or they take 10% of the sale price/uplift.
Devil is in the detail. I suspect it only works if you are absolutely certain you will never want to sell…
Member Since June 2013 - Comments: 693 - Articles: 1
11:28 AM, 9th September 2026, About 28 minutes ago
SCAM