How to deal with SAT agreements

How to deal with SAT agreements

10:53 AM, 28th August 2014, About 9 years ago 12

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Can anyone advise on how to deal SAT agreements?  How to deal with SAT agreements

I am currently looking to purchase at (Scottish) auction and have noticed that many of the proprieties have sitting tenants on SAT agreements. This is reflected in the price and therefore the properties are normally heavily discounted from area comparables. My limited understanding of SAT agreements is that this makes it very difficult to evict the tenant which in turn devalues the property. The SAT agreements are always outdated, achieving way below market value with regard to rental income.

I am looking to find ways to overcome these problems so that I can take advantage of the opportunity rather than let it pass as most other investors do. Most of these properties do not sell in the room.

Many thanks in advance for everyone’s thoughts.

Andrew Hayworth

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Neil Robb

20:33 PM, 30th August 2014, About 9 years ago

Hi Andrew

They are several reason why landlords do not like buy regulated tenancy.

Getting a mortgage may be difficult and they are hard to sell on.

But for most if the regulated tenant is allowed to pass on tenancy in the event of death. So your have a 60 year there for twenty years his 18 year old grand child moves in get rent for buttons. wont move for life not such a good deal now.

Andrew H

15:41 PM, 1st September 2014, About 9 years ago

Thanks Neil.

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