With asking prices soaring and buyers keen to make the most of the Stamp Duty holiday, it’s little wonder Network Auctions have been inundated with enquiries following the listing of 34 Tokar Street in Southsea, Hampshire, a two-bedroom terrace house with a guide price of just £80,000+.
On the open market, the property which has a sitting room, dining room, kitchen, bathroom, two bedrooms and garden to the rear, has an estimated value of £205,000.
But there is a slight catch for the winning bidder: the property is subject to a life tenant. This means the new owner will not be able to move in right away because the life tenant has the right to remain in the property rent free until their death or they permanently vacate. The tenant is a single male aged 64 years old. Unlike the usual AST agreements many landlords will be familiar with, in the case of a life tenant, the tenant is responsible for all bills and maintenance of the property under the terms of the tenancy agreement.
Toby Limbrick, auctioneer, says ‘Properties with life tenants are still quite unusual on the market, but they offer a unique investment for those who can see the longer term horizon and who are looking for a hands-off investment.’
Tokar Street will be sold online by Network Auctions on 10th December. For more information: www.networkauctions.co.uk