We have a good tenant on a periodic tenancy and we need to sell the property – how do we stand?

by Readers Question

17:05 PM, 4th October 2015
About 3 years ago

We have a good tenant on a periodic tenancy and we need to sell the property – how do we stand?

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We have a good tenant on a periodic tenancy and we need to sell the property – how do we stand?

Buy to Let Property On SaleWe have a difficult tenant who signed a periodic tenancy last year and we now need to sell the property.

She wants to stay until August 2016 but we need to sell and complete by the time she moves out as we don’t want to let it out again. Can we start marketing the flat in say March 2016 as it wont be the easiest flat to sell.

The yield is poor as we originally purchased the flat to occupy but our circumstances changed.

Judith



Comments

Neil Patterson

17:09 PM, 4th October 2015
About 3 years ago

Hi Judith,

It is for this very reason and the number of Landlords that have asked us if we can help them sell their properties that we set up " Buy-to-Let for Sale".

Why wait when you could try selling to a Landlord now! The tenant does not need to move out, the landlord gets a ready made tenant and you suffer no voids.

It's a win win for everyone.

Please see our home page - http://www.property118.com/

money manager

9:45 AM, 5th October 2015
About 3 years ago

Reply to the comment left by "Neil Patterson" at "04/10/2015 - 17:09":

But we don't know that keeping the tenant would yield the best price, if the yield is low even investors may be deterred.Again, with a low yield a void may not be so bad specially if a better price could be obtained and perhaps from a home occupier. Consider the best time to market the flat independently from the tenancy (and why it may not be the easiest flat to sell, is it correctable) and review when you may be able to issue notice.

Mike Amapola

21:50 PM, 5th October 2015
About 3 years ago

Reply to the comment left by "Neil Patterson" at "04/10/2015 - 17:09":

Hi Neil & Judith.
Must admit it could be a good way to go. In fact I will be looking into the situation shortly with regard to one of our properties. Only thing is I'm not sure if there are any other Property 118 followers down here in theTorbay area (Torquay, Paignton & Brixham).

Renovate To let

11:04 AM, 6th October 2015
About 3 years ago

Firstly I think a bit of clarity is needed re the tenancy - what was signed, when and for what fixed period?

Then look at the flat with business eyes - take the emotion out.

An investor will want a certain yield for your area (letting agents will confirm what it is) and so will compare the rent with the value (and also will want to see the AST to determine when/if the rent can be increased IF its below current market rates). This will guide you as to the value if sold tenanted.

Regarding vacant v tenanted. First clarify the AST and the date when a S21 notice could become actionable. Then consider the difference in value and think about the case for offering the tenant money to leave early. This is perfectly legal as long as its an offer (to surrender the tenancy) and not harassment to leave. Obviously money would only change hands on receipt of both a signed surrender and vacant possession.

Also consider added value. Is there money to be made from a refurb etc (if vacant)? Does this change the case?


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