Selling tenanted house

penelope26

I have put my tenanted house on the market. The tenants tenancy is due to end in march 2016, I've told them I need to sell for financial reasons and they have said they understand and are willing to stay in the property until sold on a month by month basis but I just want to check is there anything I should do I,.e issue a formal document agreeing this. Does allowing them to stay on a month by month complicate things if they then go back on the agreement

G_M

Yes.

1) serve a S21 Notice immediately with expiry date aligning with end of fixed term

2) ensure tenants understand they need to leave at end of march

3) if tenants don't leave at end of march, apply for possession

4) unless you are looking for an invester to buy with tenants in place, get vacant possession asap - buyers will be very wary if tenants are still there. Rightly.

penelope26

Thank you G_M, the house had little interest which is concerning and when the tenants said they were happy to stay until sold I thought this would solve two issues a) them moving out soon and b)given the sales process can take 6 weeks plus would help me having to pay for two properties when already financial issues. But you're probably right about not attracting people to buy. If it takes a long time to sell I'll probably have to hand the keys back which is a shame.

Booksurr, don't assume everyone is an expert! I'm asking for clarification to make sure I do the right thing. I've treated my tenants very well to date. I have seen the s21 notice mentioned in my research but wasn't sure it was needed with their tenancy ending in march. Now I know for sure I will send it tomorrow

fairy_lights

Be aware that your tenants may be reluctant to allow viewings while they're still in the house, and may even refuse them altogether.

penelope26

I know. So far they've been ok and are allowing another valuer to go at the weekend. I don't want to impact their lives too much so have asked them for suitable times etc

kinger101

penelope26 wrote: »

If it takes a long time to sell I'll probably have to hand the keys back which is a shame.

Do you realize this doesn't actually solve anything?

http://england.shelter.org.uk/get_advice/repossession/about_repossession/handing_back_the_keys

penelope26

I understand voluntary possession. I work for a bank but I may have no choice. Rent & bills plus mortgage & bills will be too much given my recent ill health and lack of funds to support this for a long period of time. Per month just for rent and mortgage I will need to find £900

Marvel1

penelope26 wrote: »

I understand voluntary possession. I work for a bank but I may have no choice. Rent & bills plus mortgage & bills will be too much given my recent ill health and lack of funds to support this for a long period of time. Per month just for rent and mortgage I will need to find £900

Just a suggestion, probably considered, are you able to move out of the rented property and move in to the you own that is rented out?

Pixie5740

Just to clarify, is this property in England or Wales?

penelope26

I can't move back in. It's a different kind city. I'm now closer to family and friends which I need given my health. The property is in England

Pixie5740

If you need a quick sale then have you considered selling at auction? You could either sell it as an investment property with tenants in-situ or you could evict the tenants and sell it with vacant possession. It's just that from what I can gather from the forum, selling a property in England can take a lot longer than 6 weeks even if there is only a 2 party chain.