Selling a flat with tenants

tonytheviking

Hello all,

I have a mortgage on a flat in central London. I let it privately, and have recently agreed a tenancy with 2 good tenants, due to en in June 2011.

Due to a recent change in circumstances, I am keen to sell the flat asap to free up the capital.

Is it possible to sell a property with an existing tenancy agreement, without compromising the tenants? Are there agencies who specialise in this sort of sale?

Thanks,
T

Annisele

It's certainly possible - I'm currently renting, and my new LL bought the place from my old LL whilst we were living here. The old LL just used an ordinary estate agent.

You will limit your market - people buying with a residential mortgage are unlikely to be prepared to exchange until your tenants are out - but depending on the area of London it might not be a problem.

G_M

You will need the co-operation of your tenants, so treat them well! They have the right to 'quiet enjoyment' of their home so in theory could, if they chose, refuse to allow viewings by prospective buyers.

In practice, so long as you are upfront with them, reassure them that you are not planning to evict, are reasonable about agreeing convenient viewing times, don't do unplanned last minute viewings, discuss whether they mind viewings in their absence (lots of tenants understandably feel uncomfortable about stranger wandering around while they are at work!) or would prefer to be present, and limit the number /frequency of viewings etc etc, then they should be fine.

You need to find one or more local agents who do lettings as well as sales, and who have knowledge of local landlords who might be interested.

And you'll never get top market rate. Tenanted properties have a much smaller market (no owner-occupiers) and landlords will look for bargains.

martindow

As it will depress the value of your flat to sell it with sitting tenants another option is to offer to pay some money to the tenants to mutually agree to finish the tenancy early. They would expect all of their costs of moving, letting somewhere else and something on top for the trouble, but it might be worthwhile discussing this with them.

kmmr

How much? Where is it? I do know someone who is looking to get more properties in London, and would jump at a place with tenants in place. PM me the details??