Selling a tennanted house?

mrsides

Hi

Having got divorced four years ago, I feel the time has come to sell the property that I was given as my settlement. I have been renting it out and currently it has tennants in, who are great pay monthly with no issues what so ever. But I would like to sell the house as it is something from the ast which I no longer want around me, plus I have moved out of the area.

Its a little two bedroomed cottage, fully refurbished including a new roof all the way down to new floors, since Ive owned it. Its got a good rental income, but here is my question.

Ive had it on the books with an estate gaent and have had a jips pack completed on the house, but how would I be best selling it? I read that people wont touch a house with tennants in it, but I cant afford to leave the house empty whilst it sells? So how am I best selling the house, is there a website that sells houses with tennants, do i approach the estate agents and ask them for help in marketing.
Ive asked the tennants and offered them the house at a silly price just to sell it, but I think they are happier as long term rental rather than buying.

Thanks

david29dpo

You have a few options. Keep it as an income, how does the income compare with the cash in the bank? Try and sell with the tenants, it can be done but again, how good an investment is it to someone else? Or sell with vacant possession. I know you say you cant afford to have it sitting empty but thats the only way.

N79

If you post up the monthly rent and the minimum purchase price you will accept then people can give you a rough indication of whether another LL would be willing to buy. Otherwise you will need to evict the Ts and sell with vacant possession if you want the open market rate.

blondie4281

I'm a little confused. I also own a house which is currently rented out, but we would like to sell. We were just intending to let the tenant know that we are going to put the house on the market, and assume that it will be sold by the end of their tenancy agreement. That the completion date would be around or shortly after the end of the tenancy. I did not envisage a problem. The estate agent does veiwings at the tenants convenience etc etc. Is this not how it is done?

Annisele

blondie4281 wrote: »

I'm a little confused. I also own a house which is currently rented out, but we would like to sell. We were just intending to let the tenant know that we are going to put the house on the market, and assume that it will be sold by the end of their tenancy agreement. That the completion date would be around or shortly after the end of the tenancy. I did not envisage a problem. The estate agent does veiwings at the tenants convenience etc etc. Is this not how it is done?

That can be a problem.

You can't guarantee that the tenants will leave at the end of their tenancy period/notice period. They might say they will - and you might well believe them - but you can't guarantee it. If they don't leave at the end, you'd need a court order to get them out. If the completion date comes and goes without the tenants leaving, you're stuffed - you can't give your buyer vacant possession as you promised, and you may end up liable for all sorts of costs incurred by your buyers.

As a result, most buyers won't exchange until the tenants have actually left. That means there will almost inevitably be a void period between exchange and completion - unless you sell with sitting tenants. If the property is one that would be attractive to a buy to let landlord, that might not be a problem. If the property wouldn't be attractive to landlords, you're stuck with a void period.

In addition, the tenants might not agree to allow the agent to do viewings (either at their convenience or at all). You can't force the tenants to allow viewings.

googler

I saw one advertised as for sale with sitting tenants not too far from me - it didn't look particularly well-looked after, but when others of the same size sold for £121,500, £123,000, the tenanted one sold for £98,000.

Don't expect a landlord buying the house to pay top market value, it seems....

<sebb>

Annisele wrote: »

That can be a problem.

You can't guarantee that the tenants will leave at the end of their tenancy period/notice period. They might say they will - and you might well believe them - but you can't guarantee it. If they don't leave at the end, you'd need a court order to get them out. If the completion date comes and goes without the tenants leaving, you're stuffed - you can't give your buyer vacant possession as you promised, and you may end up liable for all sorts of costs incurred by your buyers.

As a result, most buyers won't exchange until the tenants have actually left. That means there will almost inevitably be a void period between exchange and completion - unless you sell with sitting tenants. If the property is one that would be attractive to a buy to let landlord, that might not be a problem. If the property wouldn't be attractive to landlords, you're stuck with a void period.

In addition, the tenants might not agree to allow the agent to do viewings (either at their convenience or at all). You can't force the tenants to allow viewings.

I'm sorry to hijack this thread but I'm currently in the position of buying a house with tenants. I've asked countless times when the tenants are leaving, only to be told that they've already been given notice. Not been given dates though.

My solicitor requested copy of the notice two weeks ago which has not been received. Then yesterday my EA emailed me to say the vendor was signing his contract today and when did I want to complete. Once we had the date fixed, then he would ask the tenants to leave.

I asked him if they'd issued a section 21 notice (or any other notice) and he said that the landlord had just told them he was selling and once it was sold would ask them to leave. No formal notice or anything! I couldnt believe it!

I'm not really sure what my next move should be. I dont want to give notice to my landlord if this sale isnt going to happen, and I cant guarantee the tenants will leave.

They dont speak much English and dont work, and I wouldnt mind betting they don't know their rights so might just leave when asked. I dont want them to be taken advantage of. They deserve formal notice!

G_M

Under no circumstances Exchange contracts until the tenants have left.

The fact that a S21 has not even been served and "he said that the landlord had just told them he was selling and once it was sold would ask them to leave" is a joke.

Walk away from buying this property unless the vendor starts dealing with this properly.

They dont speak much English and dont work, and I wouldnt mind betting they don't know their rights so might just leave when asked.

So a) you are happy to see these poor people exploited and b) they probobly have little money, nowhere to go, so contrary to your belief, will stay.

<sebb>

G_M wrote: »

So a) you are happy to see these poor people exploited and b) they probobly have little money, nowhere to go, so contrary to your belief, will stay.

Erm no! From my post above "I dont want them to be taken advantage of. They deserve formal notice!"

I've only just found out 2 days ago that they don't work. I did not know this when I offered on the house. I was told they were 'moving out any day now'.

I went to see the place 2 days ago and it most certainly did not look like they were going anywhere fast. Hence my checking the position with the EA again.

calebdylan

The best option to you considering the dilemma that you're in, is to sell the house with the tenants in it.

m_curiousity

We are FTB's and in the middle of buying a tennanted house. When we viewed the EA told us the tenants were leaving in March and that they'd already been given notice, however the tenants did want to buy the house and had put an offer in. We put in an offer and were told it was ours, then found out the tenants hadnt been given notice yet. A few days later they said they had been given notice now, and their 2 month notice period started at the end of March.

What really annoys me is that they were saying they wanted a 4 week turnaround on the sale before we put an offer in, which suited us fine. I dont know how they were ever planning to do that if they hadnt even given the tenants notice!! Obviously the tenants are refusing to let anyone in until their notice period starts (not sure if they even have to legally then??) so we cant get a survey or anything done, but the vendor is wanting us to exchange before the tenants move out. We've said no, but concerned that they'll just end up pulling out and selling to the tenants for slightly less and a quicker sale.

If we werent FTB's I dont think theres any way we would have considered a tenanted property as its just giving you way more things that can go wrong!!