Perplexed!

Diamond1

I'm not sure what to do. I have nearly finished renovating a 2 bed flat from top to bottom and will be putting it up for sale in the next couple of weeks. I'm a bit worried as I will have to start to pay full council tax on it as well as any other bills so I'm thinking should I put it up for short let while trying to sell it? Is this a silly idea? There is no mortgage on it but I am paying rent where I live with full council tax so it's going to be very difficult for me to find another £100 on top of what I'm already paying.

Opinions please.

BitterAndTwisted

Yes, it is a very, very silly idea indeed if you're looking to get a sale as soon as possible. Your tenants will be there on a minimum six-month contract and may not even move out at the end of it. Search this site for info on how difficult it is to winkle out tenants who don't want to leave. Selling a property with tenants in situ is not attractive to buyers for this reason unless they are professional landlords themselves.

That a person would choose to tie up every spare penny in renovating a property without a cushion of a bare minimum of £100 a month smacks of recklessness imo

phil_b_2

I don't think putting it up for a short let while it goes up for sale is any sort of realistic option, unless you let it out to a friend with no contracts of sorts.

what if it sold straight away?

Know anyone who might want a change of scenery for a while?

BitterAndTwisted

Nope, as soon as a friend moves in there is an implied tenancy and that ties up the property for six months. Read a few threads on here for the ways that even close friends can behave in the most extraordinary fashion. Expect the best outcome but always be prepared to deal with the worst.

PasturesNew

You could offer it for short term rentals, as a serviced apartment. Like a "holiday lets" type of thing. But then you'd need to have it insured for that and arrange to have a cleaner and sheets/towels to be replenished.

Diamond1

Well guys n gals. Guess I will be eating baked beans for the foreseeable future, boo hoo :-(

Can only hope I'm lucky enough to get a relatively quick sale. Thanks

PasturesNew

If I were renovating a flat, I'd expect it to be empty for 4-6 months after I'd finished, while any sale was going through. That's be a normal business plan for me (if I were to ever do it). And it'd be factored into the cost/risk before I bought it.

It's rare (especially these days) for a renovation to be finished and a buyer already banging the door down with excitement.

Diamond1

Iv'e never done this before. My Mum passed away last year, it was her flat and we have been busy bringing it up to date ready for sale. Guess I will just have to really watch the pennies and hope it won't take to long to sell.

sheddy7

I'm no expert but I thought you didn't have to pay council tax on a property if it's unfurnished and you aren't actually living there?

Colincbayley

BitterAndTwisted wrote: »

Your tenants will be there on a minimum six-month contract

Although I agree with every other word of your post, this part is just incorrect.

An AST can be for any period you like, it does not have to be for a minimum of six months.
(Not to be confused with the use of a S.21 notice which can not expire until after a six month period)

chappers

sheddy7 wrote: »

I'm no expert but I thought you didn't have to pay council tax on a property if it's unfurnished and you aren't actually living there?

Thats correct if it is empty and unfurnished then you will be able to get a six month exemption from council tax and then at least a single persons rate after that, and maybe more depending on your LA.