Selling house with tenant in ?

TRANSITIONS

Hello,


I have a tenant in my house signed up untill may, but i have been laid off work!! so need to sell as quickly as possible.

Would going through an auction be any good to sell quickly and get some kind of money what the property is worth,
or will i just have to wait untill it sells with estate agents ?

Any information would be great thanks.

seabright

You can sell with a tenant, but obviously only to someone who wants a buy-to-let. You're more likely to get that kind of buyer at an auction, but you might have to accept a lower price. The advantage is that it's quick.

Do you really need to sell? Does the rent cover the mortgage? If you have got alternatives, consider them as a forced sale usually means a sale at a lower price.

Good luck

G_M

1st thing is to see if the tenant is willing to leave early. Who knows, they might be sitting there thinking 'wish we could move but we're stuck here till May'!
Speak to them. Even offer to pay their removal costs/estate agent vetting fees etc for a new place.
Then you have an empty property - much easier to sell!
If not, find a local agency that does rentals AND sales. See if they know local landlords who'd take over a property + good tenant (are they good tenants?)

Auction might be quicker - but you'll not get anything like as much.

Mankysteve

Is the tenet a lodger or actually separate property?

G_M

www.Rent-Smart.co.uk wrote: »

Step one (What’s it worth)
obtain three valuations from local established Estate Agents there are normally free and without obligation, Normal AST tenancy contract have a
Clause for the tenant to allow access. unenforcible! If the tenant objects, nothing you can do!Also ask them if they will market the property with the tenant in until sold on the understanding the property will be sold with vacant possession very dodgy. you cannot guarantee vacant possession as tenant may refuse to leave (see below)

Step Two (Is the tenant interested)
Ask the tenant if they would be interested in purchasing the property, they live there so they are your most likely prospective buyer,????!! they are tenants! not home-buyers! Finding a landlord is much more realistic. Worth a try though. offer them a discount off the valuation price of say 10% or a contribution towards the deposit

Step Three (Buy to let Mortgages)
Assess the rental yield of the property agents the value, if the property is worth 150k and the rent is 350pcm B2L Mortgage companies will not lend against it, as a let investment property the rental yield will not cover the new landlords interest payments. If the tenant is long term and the property is worth say 65k and the rent is say 425pcm then this investment will appeal to investors.Yup this will help evaluate the property's attractiveness to other LLs.

Step Four (auctions)
Contact your local property auctioneer and ask what guide they would recommend and also what price they feel the property will achieve, remember investors buy at auction to pick up undervalue properties so it will be about 25% less then the estate agents valuation

Step Five - Arrangements with the tenant(s)
If you feel its best selling the property through the local agent and wish to keep the tenant in the property while listed for sale, it maybe a consideration to come to an agreement with the tenant that they allow the agent to undertake viewings in return offer them a reduced rent of say £25 per month Definately! Remember the tenants can refuse to allow access for viewings, or if they want to be difficult can 'show' the property at its worst!

Step Six - Removing the tenant
If the tenant is now outside there fixed period of the AST tenant is 'signed up till May' so I assume that means fixed term till then and it now rolls month by month you can serve a section21 notice to obtain vacant possession of the property, this is a legal notice under the housing act 1988 and takes two months to obtain the property back. 2 months? At least! If tenant stays, you need a court order. Then to enforce it. So 2 months can become 4...or 6. Hence do NOT sign a contract giving a buyer vacant possession till the tenant is actually out.

Hope this helps.

itsakidsworld

Or maybe a SPAM posting?