Great tenant for 12 years but I need to sell?

Surely this just highlights how much less a property will really be worth with a tenant in situ, good or otherwise?

Put it on the market with a tenant in situ.
Explain to any purchasers that what you are going to do is sign a new TA at the point of exchange to protect the tenants for a year. Take £2500 off the agreed sale price ( if necessary, to cover the new owners rent shortfall).
Explain to your tenants you are very sorry, but all you can do is protect them for a year. Then walk away from the situation knowing you have done the decent thing, which is far more than a lot would, and don’t give any of it another thought.
If that doesn’t work then give your tenants 3 months notice, if they are decent they will move out, if not start a possession claim with a specialist. Either way you should have them out prior to the sale completing.
It is easy to become emotionally involved with tenants and their situation and think that you are friends. Do not confuse friendly with friendship, it is business and your pension. It is not your responsibility to run their lives.

I think you are being too emotional – this is a business transaction.
You bought the house and rented it out for the sole purpose of providing a pension pot and that is exactly what is happening now.
Regardless of how nice the tenants are or not, you have been paid (in your opinion) well for the service you have been offering but you are now in effect terminating that contract and that is exactly what you have to do with the tenant.
I am not sure why in a world of increased costs you would consider taking less than the market value of your asset because someone nice is living in there. Your estate agent or solicitor will not reduce their fees because you are a decent person
Serve notice, offer the house with vacant possession and if you feel strongly about helping out this perfectly decent family, then perhaps offer to give them a thousand or so to help them with their removal costs. That would be a personal gesture once they have moved and a thank you for looking after your investment for you but dropping 15k off the asking price is denying yourselves that in your pot,
I’m sure in time you will soon find out how decent they are if the council get involved!!
The other option is not to sell and let them stay there forever…………

Dear Doug,

It is imperative you keep the rent near to the market rent. It increases the capital value should you sell with a tenant in possession and gives you a better alternative strategy of retaining the capital value by not selling and funding your retirement from the income stream. At some later point you might need many thousands of pounds you can decided to sell or remortgage the property.

This problem will hit thousands of ‘small’ landlords who invested in BTL for their pension after Gordon Brown raided the private pension industry. If you can’t fund your retirement when the time comes, you will struggle at a time when you should be enjoying life.

Hi have a similar situation with a lovely tenant. Probably the best tenant of all the tenants we’ve ever had across our properties. I have issued a section 21 and they are now looking for other rented property. I have discussed with them the options of how to buy property and the perils of Leasehold freehold et cetera.

I’m looking at a creative different way seeing what mortgage they can get and then taking a private loan out with myself obviously having that protected.

There’s also the option of Your tenants buying significant share in the property Freeing up capital for you.

I don’t know whether your tenants benefits can help to towards mortgage or not.

If however they are just not in the race then you have to bite the bullet issue a section 21 and then you have an empty property to sell at the higher price. I gave my tenants 3 1/2 months to find a place however they are now talking about buying, our property as they’ve seen how much more expensive Properties to rent compared to the rent that we managed to keep down for them.

If you were considering dropping your asking price by 15k then why not offer a proportion of that to your tenants?

Hi, might be useful to say where the property is if you are looking for potential buyers/investors?

Put it on the market with a covenant that the rent has to stay at this level for 12/24 months, and advise the tenant you have done what you can – it is ultimately your property, and it is ultimately their responsibility to find / afford somewhere to live.
50% discount (68k for 125k if the valuation is correct) seems steep. Even those on a regulated tenancy usually went for about 1/3 less.

£125k and £700pcm is only 6.7% gross.

Even at the discounted £110K it’s only 7.6% gross

£100k and 750pcm would give 9% gross, that might draw attention, depending on the property and location.

Where is it and what is it?