Selling house with sitting tenant

signol

Hi

this is my first forage into the property section of the site

I have a property that is rented out, with a tenant currently renting it. I'm considering selling the property as my wife and I are thinking about emigrating (she is foreign and we'd go to her home country). Quesitons I have are:
- Would a sitting tenant increase the asking price over an empty house?
- Would a regular estate agent be able to handle this kind of sale or are there specialist investment property agents? (I've googled but only really found the below)
- Has anyone any experience in selling to a property investment company, such as Portland House Group?

The house is in a small town in Suffolk.

Thanks for any advice or experince anyone has to offer!

signol

david29dpo

Most likely decrease the price, however some Land Lords may be interested in buying with a (good) sitting tenant.
I can see no reason why a regular agent cannot handle the sale.
No personal experience of that company but expect a very low price.
Your biggest problem could be most if not all lenders insist on vacant procession. (not a problem with cash buyers)

DominicJ_2

Sitting tenants limit you to BTL buyers.
A good long term tenant is an advantage I suppose, but its a fairly small pool of buyers.

go_cat

Plus most landlords would want the property cheap not full market value

you would be better giving the tennant appropriate notice and then only selling it once it has been vacated

Werdnal

I would advise never to try to sell with a tenant in place.

You are limiting your market and reducing the price, as no-one would get a residential mortgage with a tenant in place, and therefore only investment buyers would be interested. Indeed, many LLs prefer to choose their own tenants, and as anyone buying a tenanted property is automatically bound by the terms and conditions of the tenancy agreement you signed between you and your tenant and cannot change that, then it may even reduce the number of LLs interested!

If you did get someone wanting to buy for themselves, the eviction process to remove the tenant is so longwinded, they would likely pull out anyway.

Your tenant can refuse all access by agents, viewings etc. And even if they do accept possible buyers to look around, they have no vested interest in encouraging a sale as they would possibly be making themselves homeless. I tried (and failed) to sell my flat with a tenant. He moved in knowing property was on the market, said he was fine with viewings etc. He allowed the first couple of viewings, told them it was a horrible place to live, noisy neighbours, comings and going at all hours and he couldn't wait to leave. Flat was a mess, he smoked heavily (EA said you could smell it before he opened the door), and understandably the buyers ran for the hills! He then refused all future viewings, stopped paying rent and left the place dirty, smoke stained and stinking - I had previously prepared it for sale and it was spotless, so had to go through all the work again!

I would advise that if you want a quick sale, get your tenant out, refresh and market at a competitive price, and the money you will save by selling quickly, will far outweigh the loss of rent whilst it is empty! Remember, it is a difficult market for selling at the moment, and you want to make your property as attractive as possible to as wide a range of people as possible - not limit the market and price you may get, and have to keep it on the market for months holding out for the offchance that a LL might be interested ...

theartfullodger

When did the tenant move in?? If before 27th Feb 1997 probably an assured tenant so S21 can't be used to get them out thus price lower. If before 15th Jan 1989 then regulated tenant and price really much lower...

In your shoes I'd try and get vacant possession then sell the place: if necessary bribe tenant to go (if he digs his heels in it's probably 6 months-ish to get them out, assuming AST & correct paperwork). However, 1st walk round all your local estate agents (they've not much else to do..) and discuss the position: They just may know of someone happy to buy with tenant in place fast - but beware dodgy dealings between agent & purchaser...

G_M

Do you really mean 'Sitting Tenant', or do you mean a tenant on an Assured Shorthold Tenancy agreement?

signol

Thanks for all the advice. Seems like the best plan is to wait for the tenant to leave. There's no hurry for a year or two.

G_M wrote: »

Do you really mean 'Sitting Tenant', or do you mean a tenant on an Assured Shorthold Tenancy agreement?

I wasn't aware of a specific difference, but he has an Assured Shorthold Tenancy agreement.

Thanks all

signol