Now I am excited about this week’s buy to let deal I have picked for you, as soon as I saw it come up for auction. it’s a beautiful character building on Church Street in Runcorn town centre. Now, the reason this is such an attractive deal, is that it is currently tenanted until 2021 where it is let to a charity. You would have to make your own enquiries as to whether the current tenant may renew at the end of the term. It is coming up for auction on 6th February 2017 with Barnard Marcus in London and the guide price is £95,000. Now, as it is a commercial building it is exempt from stamp duty and is exempt from the section 24 tax changes imposed on landlords affecting mortgage interest relief so good news if you want to continue investing without setting up a limited company. If the property sold for the guide price, it would still provide a gross yield of over 8%.
Below is a link to the property in the auction catalogue.
Don’t forget, if you are buying at auction to set your budget before you go and don’t allow yourself to get carried away with the bidding. When the hammer goes down on your bid, you are legally bound to go through with the purchase as you would on exchange of contracts usually within 28 days (check out the legal pack for more information) so please ensure you have made your enquiries with regards to lending and the structural integrity of the building prior to the auction to save any nasty surprises later.
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