Selling a house with the tenancy ending

jungle_jeff

Evening all.

I currently have a tenanted property which I would like to sell at the end of the tenancy (end of May). I would like to put the house on the market as soon as possible because I don't want it empty while a potential sale is (or is not) going through.

I will be asking my lettings agent (been pretty poor so far) to issue a notice to quit on tenants by the end of the month so that the house will have vacant possession by the end of May.

I'm a bit worried about where I stand with a potential estate agent showing prospective vendors around the property if the tenants decide they don't want to grant access - I should add I have no reason to think the tenants won't allow people access but also want to cause them minimum disruption as they've always been good while living there.

Basically I'm trying to make the property sale as easy and swift a process as possible and bring it to a close as soon as the property becomes vacant, while avoiding putting anyone's nose out of joint! The added complication being I live miles away and can't be on hand to do anything...


Any advice appreciated.

da_rule

You cannot make the tenants give access to the estate agent or potential buyers.

Just be upfront with the tenants and get times that are most convenient for them for viewings to take place. You could consider an 'open/viewing day' on a day where the tenant is going to be out. Is there no chance another landlord would want to buy it with sitting tenants?

Don't forget to pay your capital gains tax.

G_M

As da_rule says, you will need cooperation from your tenants, so best to speak to them.

Yourself.

Leting agents often take the 'You must allow access" approach which puts the tenants backs up so they respond by protecting their privacy by changing the locks and refusing ALL access.

Be reasonable and reach a compromise.

Be aware also that the agents issuing a "Notice to Quit" (this must be a S21 Notice) does not guarantee "that the house will have vacant possession by the end of May.".

The tenants may choose not to leave. Or may be forced to stay because they cannot find a new home. It can take several more months to evict. Indeed if the agents slip up in the process you might find in May that you have to re-issue the S21 and provide another 2 months.........

So check what the agents are doing.

Prospective buyers with any sense will know all this. Many buyers will be put off by the presence of tenants (knowing delays are likely), and many more may express interest but refuse to spend money out (on seraches, surveys etc) till the tenants are actually gone.

trying to make the property sale as easy and swift a process as possible and bring it to a close as soon as the property becomes vacant..., "

These are two conflicting aims.

Either

* leave the property tenanted, and don't sell or
* evict and then sell the (already) vacant property or
* try to do both and lose potential buyers, end up having to reduce the price, put people's noses out of joint (buyers, tenants, agents), and generally make life difficult for yourself


Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

jungle_jeff

G_M wrote: »

As da_rule says, you will need cooperation from your tenants, so best to speak to them.

I've updated them on this though told them there won't be anything viewing wise happening for a few weeks. Sounds like I'd best put it off until they've left then!

G_M wrote: »

Be aware also that the agents issuing a "Notice to Quit" (this must be a S21 Notice) does not guarantee "that the house will have vacant possession by the end of May."

A good point. I've just purchased a house that was in this scenario (a point my solicitor made sure to check) so I just sort of assumed it would work the other way too. I will certainly be checking what the agents are doing. Generally speaking they've been very poor so I'm not sure I even trust them with this and wonder if I'd be better doing it myself. The only reason I'm still with the agents is because the tenancy is coming to an end and rent/deposit stuff has all gone through them so it seemed like a lot of grief to sort when we would be separating in a couple of months!

G_M wrote: »

Prospective buyers with any sense will know all this. Many buyers will be put off by the presence of tenants (knowing delays are likely), and many more may express interest but refuse to spend money out (on seraches, surveys etc) till the tenants are actually gone.

As mentioned I was in this situation myself although in London I didn't really have the luxury of holding off a while. The property I'm selling is not in London though.

G_M wrote: »

Either

* leave the property tenanted, and don't sell or
* evict and then sell the (already) vacant property or
* try to do both and lose potential buyers, end up having to reduce the price, put people's noses out of joint (buyers, tenants, agents), and generally make life difficult for yourself

Looks like the middle option is the best probably then. Thanks.

da_rule wrote:

Don't forget to pay your capital gains tax.

Interesting - I'd assumed I'd be exempt but maybe I won't be. I've sort of become an accidental landlord when I relocated south 18 months ago (the house I'm selling was my home but I let it when I moved).

da_rule

You might be exempt but it depends (as with most tax issues) on the complex formulas.

thequant

jungle_jeff wrote: »

Evening all.

I currently have a tenanted property which I would like to sell at the end of the tenancy (end of May). I would like to put the house on the market as soon as possible because I don't want it empty while a potential sale is (or is not) going through.

I will be asking my lettings agent (been pretty poor so far) to issue a notice to quit on tenants by the end of the month so that the house will have vacant possession by the end of May.

I'm a bit worried about where I stand with a potential estate agent showing prospective vendors around the property if the tenants decide they don't want to grant access - I should add I have no reason to think the tenants won't allow people access but also want to cause them minimum disruption as they've always been good while living there.

Basically I'm trying to make the property sale as easy and swift a process as possible and bring it to a close as soon as the property becomes vacant, while avoiding putting anyone's nose out of joint! The added complication being I live miles away and can't be on hand to do anything...


Any advice appreciated.

A very thinly but badly veiled, "I don't want to lose rental income while selling my house, how do I have my cake and eat it ?"

Campervanman

One word of caution with the 'evict and then sell' route. Vacant properties view very badly particularly if they have been rented as they tend to look unloved and scruffy. Having previously been in this situation with a rental property I decorated top to bottom, put new lampshades and cheap but nice curtains downstairs. The colours were neutral but not bland so the property had some personality. It cost very little to do but the property is then 'chain free' and also 'ready to move in to' so you maximise both viewing potential and your financial return. The estate agent was very postive about this approach and it sold quickly.

The last time I looked there was a formula on the HMRC website to enable you to work out your potential CGT liability from property where you have both rented it out and lived in it. May be worth a quick look.

Ms_Chocaholic

Just one other option open to you .... do your tenants wish to buy the place?

Pixie5740

da_rule wrote: »

You cannot make the tenants give access to the estate agent or potential buyers.

Just be upfront with the tenants and get times that are most convenient for them for viewings to take place. You could consider an 'open/viewing day' on a day where the tenant is going to be out. Is there no chance another landlord would want to buy it with sitting tenants?

Don't forget to pay your capital gains tax.

If I was the OP's tenant I would say no to an open day. A whole bunch of strangers wandering round my home, and my belongings when I wasn't present would be too much, I would feel uncomfortable. Besides, why should the T be forced out their home for a whole day.

I would agree to viewings but not all night every night, or every single weekend.

da_rule

Pixie5740 wrote: »

If I was the OP's tenant I would say no to an open day. A whole bunch of strangers wandering round my home, and my belongings when I wasn't present would be too much, I would feel uncomfortable. Besides, why should the T be forced out their home for a whole day.

I would agree to viewings but not all night every night, or every single weekend.

I never said they should be forced out. I said it could happen on a day when they were out anyway.

lotstodotoday

da_rule wrote: »

I never said they should be forced out. I said it could happen on a day when they were out anyway.

In their position, I wouldn't want that. An open house means lots of people poking around unaccompanied. If I was having to think about moving and therefore sorting/packing, it would be a right pain to have to make the place as presentable as it would need to be on an open day. Plus I just wouldn't want strangers going through my things.... If the tenants agree, they're being very nice, but it really is asking a lot from them. (Also, if they asked for that, I'd say no and probably at that point also not allow any future viewings since I'd think the LL wants to have their cake and eat it!)