Should I sell tenanted or serve notice and sell with vacant possession?

Should I sell tenanted or serve notice and sell with vacant possession?

21:08 PM, 20th February 2013, About 9 years ago 18

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Sell tenanted or with vacant posessionI became a landlord in July 2012 due to a need to move for my job.  Initially a 6 month company let it has now been extended to January 2014.  My tenants are lovely and are normally in the house during the week so wear and tear is low and they pay a good rent.

I would like to sell the house and can give 2 months’ notice from end May.

Is it best to sell the house to an investment buyer who could buy it now knowing that there are good tenants in there until Jan 2014 or to sell it at the end of the tenancy?

The tenancy could be extended beyond Jan 2014.

The house is valued at £350K.

What are the pros and cons and obstacles of doing either/both?

Thanks in advance for sharing your thoughts – Samantha Armstrong



Comments

by Yvette Newbury

14:35 PM, 22nd February 2013, About 9 years ago

Sounds like you have it all sorted then, and I would certainly think about placing the property for sale whilst the tenants are still in situ. After all, if you find it is a problem, you can always withdraw it from sale, then once your tenants are due to move out place it on the market then. From what you have said though it doesn't sound as if you should encounter a problem... though you need to remember that if the property goes under offer and you need to service notice to deal with the ending of the tenancy properly as it is a corporate let, so no AST, therefore you do not use section 21 but a common law notice to quit. Best wishes to you.

by

14:40 PM, 22nd February 2013, About 9 years ago

Thanks for your advice Yevette

by Antony Richards

17:17 PM, 22nd February 2013, About 9 years ago

Despite the tenancy agreement you should remember that you do not have any right whatsoever to enter the property so if the tenants wish they can refuse all viewings. Usually, as soon as you announce the intention to sell the tenants will start to look elsewhere. In general you will be lucky to be able to market the house for sale and keep a paying tenant. That said it can be done so good luck. Antony

by

17:45 PM, 22nd February 2013, About 9 years ago

Thanks for the advice Anthony.

I must say I have been extremly lucky with my tenents as we seem to be on the same wavelength and I totally trust them. When I first let the house last year it was up for sale and they took it on the basis that they could have it for 6 months but it could stay on sale hence the agreement on the viewings. I am not too bothered either way - i may well keep it let to them but I will be taking them out for a drink in a couple of weeks and asking about their intentions.

Part of me thinks that as i have a good rapport with them and there is no problem with rent payment then I should let them stay as long as they want and sell when they longer want the house.

Thanks again for your comment.

by Serena

20:17 PM, 22nd February 2013, About 9 years ago

Hi. I'm in a similar position and have a tenanted property for sale in Newcafle. The agents, who are also the letting agents, have had it on the market for a year with no sale despite being slightly under market value. I'm about to put it with another agent as the tenants want to stay and am considering offering a cash incentive so they'll be helpful with viewings.

Unfortunately, the agent told them that they could stay for as long as they want so they've invested time and money in carpets, wallpaper, etc. I don't want to issue notice in case they're lucky enough to find an investor and feel it unfair considering they've been good tenants and paid their rent on time,

by

22:07 PM, 22nd February 2013, About 9 years ago

That's interesting - would your tenents like to buy your house?

My situation is that the i have agreed with the company for them to the house until January 2014 but after May we can give 2 months notice to each other. As they are just working on a contract in the area i know they will be leaving at some point . We have a good relationship so i will speak to them. i think the more i think about it the more i think i will keep them until 2 months before they want to go and then put the house on the market. I am not sure i will find such good tenants again.!

by

17:31 PM, 10th March 2013, About 9 years ago

I think the best way to look at this is to look at the figures. You say the house is valued at £350K. What is the rent you are getting? If you are getting £35,000 rent in a year - it is giving a yield of 10%. If you are getting £17,500 a year, you are getting a yield of 5%. That is how a potential landlord will look at the figures.
Without knowing all this information, it is impossible to assess your situation accurately, but my guess based on your hope to achieve £350K is that few landlords would be interested to buy your house at that price unless it is somewhere like London
Hope that helps

by

18:03 PM, 10th March 2013, About 9 years ago

Hi thanks - that is very helpful.


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