selling property with tenant

jamels2

I had originally planned to buy a second property by now but for several reasons such as stamp duty changes, prices being so high and banks not lending as much I have pretty much accepted that I'm doing well enough by owning one and paying it off as early as I can.

I have one property with a tenant, I've recently extended the lease via statutory terms. As I am a nice landlord I do not wish to evict my tenant who doesn't want to move and pays the rent as agreed.

So, how can I sell it to another landlord? Ideally keeping fees to a minimum? Local estate agents ask for at least 1% fee which is over £2000. Add to this solicitors fees and mortgage redemption penalties and it would be around £5000.

Any advice welcome!

anselld

You don’t need an agent so long as you are happy to do viewings and negotiate any offers.

You can advertise on Rightmove for under £100. Just make it clear in the advert that you are seeking investment buyers only.

In practice you cannot avoid legal fees or mortgage redemption fees or the potential for Capital Gains Tax.

00ec25

being nice to the tenant will last as long as the new LL takes to serve eviction notice on them

meantime, as above, you need to advertise on Rightmove to get max exposure but make it very clear this is a tenanted property suitable only for an ongoing LL

you will have a very narrow market as many existing LL will not want to take over a tenant they did not select themselves. Best to be ready with copious proof of how good your tenant is and perhaps as a sweetener offer the pay the incoming LL's credit check on your tenant (its a few £ after all)

the hardest part will probably you realising that you will have to pay based on the market value but will have an uphill task (professional valuer may be needed at your cost) identifying what is market value for a tenanted property as it should not be the same as the vacant possession residential property price.

an incoming (professional) LL will offer based on multiple of rental yield, not what the property could sell for as a vacant residence, you make have a shock when you see that. Naturally an amateur incoming LL may not do that, and may be foolish enough to offer based on "market" value.

Cheeky_Monkey

My understanding is that private individuals cannot advertise on Rightmove as they only allow EAs to advertise - unless that has changed recently?

anselld

Cheeky_Monkey wrote: »

My understanding is that private individuals cannot advertise on Rightmove as they only allow EAs to advertise - unless that has changed recently?

Correct. That is why there are multiple online companies offering various levels of service at various prices which eventually boil down to "we will place your advert on Rightmove for you for a small fee".

Cakeguts

Have you asked the tenant if they would like to buy the property?

jamels2

Yes tenant not in a position to buy it unfortunately