Selling and Letting at the same time!!

adam918

Ive got a three bedroom, semi in cheshire which has been on the market for a couple months. I dont actually live in the house so with the bills and mortgage im throwing away about a grand every month. Could i put the house up for let as well as keeping it on the market? or is it one or the other?
Anyone else in a similar situation? Or with any ideas

Biggie

adam918 wrote: »

Ive got a three bedroom, semi in cheshire which has been on the market for a couple months. I dont actually live in the house so with the bills and mortgage im throwing away about a grand every month. Could i put the house up for let as well as keeping it on the market? or is it one or the other?
Anyone else in a similar situation? Or with any ideas

From an agents prospective this shouldn't be a problem..

Tell the agent Buy\Rent which ever comes first. Then if you get tenents you simply tell them you plan to sell shortly.....

Mortgage Implications:
However there are other complications,

You do need to inform your mortgage company who depending on the current circumstances may either simply allow you to switch to But 2 let or you may not be able to i.e (Tie in period, lack of equity etc etc )


Tax Implications
Not to sure about this, but you should get a formal valuation when you switch to B2L then when you sell any profits may be taxable all based on CGT etc etc.....

Other Stuff
- Will need to get building insurance for B2L.
- Legally you need a Gas Certificate to ensure your gas applicance are save
- May or may not need funiture based on how you adverise.
- Will need to do an end of year self assement for the tax years that you've been renting.

adam918

cheers for your help and advise biggie

clutton_2

use a letting agent who is a member of a professional body to find you tenants - there are a lot of pitfalls for the unwary.

franklee

adam918 wrote: »

Ive got a three bedroom, semi in cheshire which has been on the market for a couple months. I dont actually live in the house so with the bills and mortgage im throwing away about a grand every month. Could i put the house up for let as well as keeping it on the market? or is it one or the other?
Anyone else in a similar situation? Or with any ideas

Depends what you mean. You can certainly advertise a property for sale and rent at the same time to see if you get a buyer or a tenant first.

If you get a tenant first and let the property out then it gets harder to keep the property up for sale.

The tenant is paying rent and during that time the property is their home. They are entitled to quiet enjoyment. That means you can't just send viewers round.

Typically AST's will say viewings should be allowed in the last month of the tenancy, so you could take the property off the market till then. Even so you will need to give the tenant appropriate notice of viewings and if the tenant wants you will have to obtain their consent to go in. Some tenants want to be present when viewers go into their home. Some tenants refuse viewings. Maybe you can find a tenant who will allow viewings the whole time in exchange for a reduced rent?

Either way you would need to give some thought to how combine selling and renting and when you will put the property back on the market, tell the letting agent your plans. If you want to try marketing again in six months you should advertise the property as a short term let, not a long term one. Let any prospective tenant know your plans to save problems later on. It costs money for the tenant to move so the last thing you want is a disgruntled tenant in your property who wasn't expecting to have to move after just six months.

If you do let the property do not forget to tell the selling agent or they may walk in on the tenant unannounced landing you in a heap of trouble!

PS. Don't forget to get permission to let from your lender!