Sell Empty or with Tenant

cakeforbrains

We have a flat that we need to sell to raise the cash for a deposit for a family home. It currently has a tenant. We want to do some renovations (new cheap kitchen, bathroom etc.) and then sell quickly.

Should we...

a) evict the tenant, dress the flat to look as good as it can, cover the mortgage ourselves for X months, and hope that by doing this it will sell quickly and for the best possible price.

or, b) keep the tenant in the flat (assuming he wants to stay) continuing to cover our mortgage payments, not worry too much about the flat looking its best (although he is quite tidy), and possibly run the risk of the sale taking longer.

My mum says that a tenant in a property would put her off buying because she'd worry that eviction problems would slow things down, but on the other hand if it's empty it's costing us money.

What would you do?

sequence

The only people who really buy tenanted properties are landlords, and they will want it cheap. The only way to sell to 'normal' people is to evict the tenant.

cakeforbrains

sequence wrote: »

The only people who really buy tenanted properties are landlords, and they will want it cheap. The only way to sell to 'normal' people is to evict the tenant.

Thanks. I probably didn't make clear that we'd, in either case, evict the tenant before a sale went through.

19lottie82

An eviction can take months, so make sure the place is empty before u start any processes related to selling as there are so many spanners that can be thrown in the works its untrue.

The Tennant could be say they will leave on a certain date then refuse at the last minute.

Also they are within their rights to refuse to let anyone in to the property. Including viewers and workmen.

19lottie82

Also you cannot guarantee to a potential buyer that a Tenant will be out by a certain date.

If you want the tenant to leave at Any point make sure you know what you are doing, to the letter, in terms of the notices to serve and dates, otherwise it could work out very timely and expensive.

Is the tenants deposit protected?

G_M

End the tenancy.

* The tenant may not cooperate with allowing an estate agent round to value the property and take photos. They have rights to 'quiet enjoyment' and can refuse access.
* they may not tidy/clean the house for the marketing photos
* they may notcooperate with viewings. They have rights to 'quiet enjoyment' and can refuse access.
* they may be p*ssed off, knowing they will be evicted, and make negative comments to potential buyers
* they may not leave when asked

And most buyers will beputoff by their presence.

Personally, as a buyer, even if I viewed and liked the property, I would not instruct a solicitor (potentially wasting money) or make a formal mortgage application till the tenants were out.

45002

cakeforbrains wrote: »

We have a flat that we need to sell to raise the cash for a deposit for a family home. It currently has a tenant. We want to do some renovations (new cheap kitchen, bathroom etc.) and then sell quickly.

Should we...

a) evict the tenant, dress the flat to look as good as it can, cover the mortgage ourselves for X months, and hope that by doing this it will sell quickly and for the best possible price.

or, b) keep the tenant in the flat (assuming he wants to stay) continuing to cover our mortgage payments, not worry too much about the flat looking its best (although he is quite tidy), and possibly run the risk of the sale taking longer.

My mum says that a tenant in a property would put her off buying because she'd worry that eviction problems would slow things down, but on the other hand if it's empty it's costing us money.

What would you do?

cakeforbrains

You don't say how long the tenant has been living there for,how long ?

cakeforbrains

45002 wrote: »

cakeforbrains

You don't say how long the tenant has been living there for,how long ?

We've let the flat for a few years now, but this tenant has been in there for about 9 months.

Werdnal

anglecashman76 wrote: »

tenants are an added resource - a kicker in the deal - any day of the week! Oh I can buy this property and immediately have the mortgage pay itself off?? DONE!

Only if you are an investment buyer with a BTL mortgage! OP does not say rent covers mortgage, plus you have to declare any rent received over and above the mortgage interest and letting expenses to the tax man, so you may not "have the mortgage pay itself off" any time soon!



OP, you have a choice:

Keep the tenant, risk a low offer or a long wait for investment buyer and a tenant who will refuse viewings and not present the place well on your behalf.

OR

Evict now (could take 2 months or longer if tenant still within fixed term or refuses to leave and you need to apply to court after the 2 month's notice), present the place well for a quick sale.

It may cost you money int he short term, but save you a few £K on the selling price.

Besides, if you tell tenant you are going to sell, they may up and leave anyway - would you want a load of strangers wandering through your home if there was nothing in it for you? Then you will be stuck with an empty property until it sells.

I tried to sell my flat with a tenant in situ - he took the tenancy knowing it was on the market and agreeing to allow all viewings. Then prompty locked out the agent, refused to answer any calls, and left the fresh paintwork smoke stained, carpets dirty and I had to start all over once we finally got him to leave and prepare it for sale a second time.

Duskylady

Depends.

Do you need to get the highest market value for this flat to give yourselves the deposit you need. If yes I would say evict as most buyers will be put off by a tenant in situ and you need to appeal to the widest possible audience. If no then go for the landlord market and be prepared to ake a hit on the price.

Mrs_pbradley936

We had my mother-in-laws flat when she died which was hard to sell so we let it out until the market improved.

When the market picked up we used the same estate agent to sell the place as found us the tenant. They were supposed to take care of all the legal issues so that the new owner who wanted to live in it and was not a landlord could have "vacant possession".

Well they did not give the right legal notices and to cut a long story short the new owner did not have vacant possession. The tenant never had a clue that the place had been sold!

As it turned out he (the buyer) was very good about it all and stayed with friends until it was all sorted out but I have no idea what would have happened if he insisted on moving in. Needless to say we did not have to pay any fees to the agent.