Best way to sell a tennated property (as a good investment)

acidliam

I have a property which has tenants with 6 months on their lease. I'm currently renting but want to sell the house I rent out to free up the capital I have in it to buy for myself.

I don't want to kick the tenants out to put the property on the market, they are a young, foreign family over here studying, they are being paid for by a very wealth nation (UAE) and the government pays the rent and is a guarantor - they still have next academic year to complete and have no intention of moving as they are very settled, so the property represents an excellent opportunity for an investor looking to add to their portfolio.

Prior to renting the house I was living in it and bought it as a home so it was re-carpeted and decorated from top to bottom, had a new luxury bathroom and has just had a new 10 year guaranteed flat roof on the garage and utility room (the only thing flagged up on the survey when I bought it). Basically the house is as good as could be really.

I have spoke to the letting agents but they manage the property for me as I was travelling over the winter and they are reluctant to help me find an investment buyer while they know they can be sure of my 10% every month which I understand. However I know there are people who would snap this up from me, I just no idea where to look.

The property is based in North Leeds, in a very desirable area, so any advice on where I could find the sort of people who would be interested in buying this house would be grateful. Thanks

Trollfever

Properties of this nature appear in the listings of both local and national auction houses.

poppysarah

They're students and whose government pays the rent?

acidliam

They are Saudi, not from UAE my mistake. basically the lady is over here doing a phd or something, her government pays for teh course fees, her rent and living costs then I assume in a couple of years she goes home and utilises her knowledge doing what ever she does in her country. Quite flattering that they chose the UK's education system to educate people if you ask me.

They are really ncie and perfect tenants and the rents never a day late hence my reluctance to mess them about.

Properties of this nature appear in the listings of both local and national auction houses.

Thanks, that was suggested but I am very reluctant to goto auction, the risk involved of losing all my equity far outweighs the benefit of selling that house for investment here. I'd rather wait until they go and weigh up my options then.

Riq

acidliam wrote: »

They are Saudi, not from UAE my mistake. basically the lady is over here doing a phd or something, her government pays for teh course fees, her rent and living costs then I assume in a couple of years she goes home and utilises her knowledge doing what ever she does in her country. Quite flattering that they chose the UK's education system to educate people if you ask me.

They are really ncie and perfect tenants and the rents never a day late hence my reluctance to mess them about.



Thanks, that was suggested but I am very reluctant to goto auction, the risk involved of losing all my equity far outweighs the benefit of selling that house for investment here. I'd rather wait until they go and weigh up my options then.

Especially Leeds!!

CLAPTON

just put in on the market in the normal way?

acidliam

CLAPTON wrote: »

just put in on the market in the normal way?

That was obviously what I originally thought. However I see it being difficult, because the tenants need 24 hours notice for every viewing. And I imagine after a few viewings its going to start getting on their tits. Plus it might backfire, I might have a load of viewings but no solid offer and then the tenants move out because of the inconvenience of strangers poking thier nose around their business and I am left with an empty house. It is an option but I don't want to rock what at the minute is a very stable boat: guaranteed rent for the foreseeable future.

As I've said what I am really looking for is some advice as to best places to dig out people looking for investment properties, someone elsewhere suggested just ringing round private property firms and asking which I will do.

N79

The only sensible advice that can be given, provided the Ts are on an AST agreement is to evict them and sell on the open market. Any other cause of action will mean that you get a below market value. There just isn't much of a separate tenanted property market in the UK as most Ts do not have security of tenure.

Properties with secure Ts are sold in a specialist market and are normally sold at around 50% of market value - the main factor in determining the discount is the age and health of the Ts.

acidliam

I will leave it as it is then, as I don't want to evict the tennants, dont want to have an empty house sat around waiting for a buyer. Thanks for the advice

terryw

N79 wrote: »

The only sensible advice that can be given, provided the Ts are on an AST agreement is to evict them and sell on the open market. Any other cause of action will mean that you get a below market value. There just isn't much of a separate tenanted property market in the UK as most Ts do not have security of tenure.

Properties with secure Ts are sold in a specialist market and are normally sold at around 50% of market value - the main factor in determining the discount is the age and health of the Ts.

Excellent advice there N79. Tenants and trying to sell a property make very poor bedfellows - it has to be one or the other really.

Secure tenants under the old Rent Acts would suggest 50 per cent
of market value, but for an AST with only six months to run, I don't think the potential drop would be quite so much.

N79

terryw wrote: »

Excellent advice there N79. Tenants and trying to sell a property make very poor bedfellows - it has to be one or the other really.

Secure tenants under the old Rent Acts would suggest 50 per cent
of market value, but for an AST with only six months to run, I don't think the potential drop would be quite so much.

Truth is there is no market for ASTs with 6 months to run as any discount is easily recouped by waiting and evicting at 6 months to get the open market value.