selling a flat with a tenant ..

MrsAmanda_2

Hi All

Could do with some advice. My husband and I have recently sold (well, have accepted an offer, fingers crossed it sells) a flat that's had a tenant living in it.
The managing agent put it on the market and told the tenant what was happening. He agreed to let people view (other than a month when his girlfriend gave birth - I wrote about that a while ago). We planned on giving him the 2 months notice once we got an offer, but he gave us notice as he'd found somewhere else.
That all worked out ok.

I've got another flat which has a tenant in it. I want to sell, so spoke to the agent about putting it on the market. They've told me that if I put it on the market, I have to give the tenant notice to move out. They've said it's a legal obligation. Is that right? Presumably that means that it's impossible to sell a flat with tenant in situ, if I were to find a buyer who wanted it as an investment?

Chances are the flat will take longer than two months to sell, and I'd rather not have it sitting empty for months if I can help it.

Any words of wisdom gratefully received.

many thanks

Amanda

BitterAndTwisted

If you found a buyer who wanted the property purely as an investment then they might be happy to have the place already tenanted. The difficulty begins when you find a buyer who needs to buy the flat with a mortgage as no lender will release the monies without vacant possession. It all depends on whether you've got the time and patience to hold out for the right kind of buyer in the current market.

Annisele

You can put any property that you own onto the market at any time.

The difficulty with a tenanted property is a) the tenant doesn't have to allow viewings and b) any potential buyers who are intending to live in the property would be mad to exchange before the tenant has actually left (and if they're buying with a residential mortgage then their solicitor won't let them exchange until the tenant has left).

The agent is wrong about the law. However, if he knows that there are very few BTL investors around in your area, then it might be that giving notice to your T is the best way to proceed if you want to sell.

G_M

Law as stated above.

However trying to sell a property with tenants in place, UNLESS you are looking to sell to a BTL investor who WANTS a tenant, is mad. You are trying to have your cake and eat it - ie maintain your rental income AND sell.

As said, tenant can refuse viewings. Even if they agree, they may restrict viewings to certain limited times (it IS there home after all!). And you have no control over the condition of the property - messy property with cooking smells will not sell easily especially if tenant makes negative comments over which you have no control.

And all that is before you get to the legals, as mentioned above. Can't Exchange till tenant leaves. Tenant finds it harder than expected to find new place so stays, forcing you to go to court... dely delay. Buyer gets fed up waiting.....

Give tenant notice, wait till they leave, then market the property.