Forum Home» House Buying, Renting & Selling

Selling my house with tenants in-situ

New Post Advanced Search

Selling my house with tenants in-situ

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
24 replies 19.5K views
moneybunny123moneybunny123 Forumite
538 posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
Hi, I'm new to this forum but I'm hoping someone will be able to help me.

I currently rent out the house I used to live in (that I was unable to sell a couple of years ago when the market first took a nosedive). A young woman lives there with her 2 kids and she pays her rent every month without fail. I want to sell my house as I have a fair bit of equity tied up in it that I want to put towards other things (I'm expecting my second baby and want to put the money to buying myself a bigger home)

I could put it on the open market with her still living there, but feel that if she doesn't want to leave, she may make it awkward when people come to view the house. If I evict her, I wont be getting any rental income but obviously will still have to pay the mortgage - I simply can't afford to do this.

So, I want to maybe try and sell it to an investor who will buy the house knowing that there is a good tenant who pays regularly and takes care of the place. A sound investment! Is there anywhere, an Agency for example, that specialises in selling rentable homes with tenants in-situ?

Thanks in advance.
«13

Replies

  • poppysarahpoppysarah Forumite
    11.5K posts
    ✭✭✭✭✭
    Speak to local EA. They may have landlords on their books looking to buy.

    Of course if you know any local landlords you could approach them directly.
  • GwhizGwhiz Forumite
    2.3K posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    Any buyers solicitor will demand vacant possession so you will not be able to exchange on a sale without the tenant out anyway.
  • edited 19 January 2011 at 2:30PM
    auroanauroan Forumite
    241 posts
    edited 19 January 2011 at 2:30PM
    Don't expect to be able to have viewings happening while the tenant is living in there. She has a legal right to quiet enjoyment of her home, which in the eyes of the law being interupted with viewings isn't quiet enjoyment.

    Also with a tenant in situe, you will not be able to sell the property quickly if you did get a buyer as you'd need to give her min 2 months notice to move.
  • That's why I want to try and find someone who will buy it who WANTS the tenants to stay. Because I don't really want to evict her. She pays her rent, and takes good care of the place. AND, if she knows she will stay living there, I think she'd happily let prospective buyers look around. The alternative, as she knows, is that i have to evict her and then sell it empty.
  • silvercarsilvercar Forumite, Board Guide
    41.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    mandbaby wrote: »
    That's why I want to try and find someone who will buy it who WANTS the tenants to stay. Because I don't really want to evict her. She pays her rent, and takes good care of the place. AND, if she knows she will stay living there, I think she'd happily let prospective buyers look around. The alternative, as she knows, is that i have to evict her and then sell it empty.

    Your problem is that you are narrowing your options. Out of the people looking to buy property at the moment what percentage are looking for a property with a tenant in situ? Probably about 10%. So you are ruling out 90% of your potential buyers.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to [email protected]. Any views are mine and not the official line of moneysavingexpert.com.
  • GwhizGwhiz Forumite
    2.3K posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    Not always: I bought a house with tenants from another landlord... it does happen... (No I'm not buying now..) - but expect the selling price to be less..

    Did you wan to keep renting it out? It's fair to say that in MOST cases vacant is required.
  • I want to sell it. I need the equity far more than I need the small amount of profit it gives me each month. But I do hope that the tenant can stay as I feel guilty for evicting her. Not only that, but what if I can't sell it quickly once she's gone? I'm stuck paying a mortgage with no tenant to cover the cost. Aaaaarrrghh!! I just want to sell the damn thing!
  • N79N79 Forumite
    2.6K posts
    LLs often buy houses with Ts in but they are normally bought through fairly informal networks - if I want to buy properties with sitting Ts I do not go through the normal high street agents but use contacts in the local LL world.

    The problem for most "accidental" LLs is that they are not really part of the LL business world (as we often see on these boards) so their only realistic opportunity to sell is on the open market. The open market requires vacant possession.

    OP - talk to your Ts about what you are doing but ultimately you will probably have to evict them and sell on the open market. That is the "normal" approach and anything else will result in a lower price.
  • N79 - that is good advice, thank you. It makes perfect sense, but doesn't really help ME, now. You mention landlords using informal networks. Such as? This is exactly the sort of thing I need to find out, but I don't know where to start.

    I have emailed a few local letting agents to ask if they know of any potential landlords that would be interested. Other than that, I have no idea. You have said that potential landlords probably wont go through agents, so now I'm scuppered!!
  • edited 19 January 2011 at 11:32AM
    N79N79 Forumite
    2.6K posts
    edited 19 January 2011 at 11:32AM
    mandbaby wrote: »
    N79 - that is good advice, thank you. It makes perfect sense, but doesn't really help ME, now. You mention landlords using informal networks. Such as? This is exactly the sort of thing I need to find out, but I don't know where to start.

    I have emailed a few local letting agents to ask if they know of any potential landlords that would be interested. Other than that, I have no idea. You have said that potential landlords probably wont go through agents, so now I'm scuppered!!

    Are you an active member of your local affiliate LL association (ie our trade bodies)? Are you active in the local business scene (be that chamber of commerce or local business groups)?

    Of course the answers are no, so your only realistic (and your best) option is to sell on the open market. This requires vacant possession which requires an eviction.
This discussion has been closed.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support