Let 2 Let is a fairly new concept whereby one property is let then sublet to the occupant.
- What is the point? You mean what is the profit!
- In a depressed market there is every point if the owner has neither the means nor wherewithal to let his house.
- Lets say an individual buys a house consuming every penny in the process. The result is a building as opposed to a house which no one wants to let.
- Enter the entrepreneur who sees the opportunity to cash in.
- Realising the owner’s predicament the first tenant offers to let the house on condition they are permitted to sublet. The desperate owner agrees and breathes a sigh of relief.
- The first tenant sets about renovating the house at his own expense before letting to the ultimate subtenant for a rent commensurate with the renovation.
- Is it risky? Yes! The owner can serve a notice to quit upon termination of the tenancy.
- Is it a good idea? – Yes, if you can recover your renovation costs during the term available - as agreed by the owner and first tenant to reflect the involvement.
- Check the BTL lender terms permit subletting!