In agony over selling or sticking with sole BTL

Crashy_Time

mrsmumbles wrote: »

Yes that is true but if it doesn’t sell for the right amount I would do better to keep renting anyway. Just hoping someone will see it, love it and pay what it is worth.

Shouldn`t your decision making be based on something more definite than that, or maybe the money just isn`t an issue for you?

mrsmumbles

Evening all.
Tenant doesn’t want to buy.
S 21 now served, talked properly to tenant first so they know my situation and have been very good so far, went over to property and have spotted things needing a tart up, three DIY jobs remaining, should look nice by Friday. So. There is an auction on Feb 12th. They charge 2.5%. Should I try selling through the agents, then set a reserve at auction as well? I am not sure how much pricier auctions will be. Is it legal to try to sell them through both? Nearest one to me sold in June for £285k. Agents advise putting it on at £299,950 to accept around 295. Hmmm. I am trying to get the price right. At auction, to achieve around the 295-295 k mark, would you have to put in a reserve of about 290, as although it would fetch less, you are shifting it in time and are saving on other stresses?
Stumped.
So far, it has been a manageable nightmare but not out of the woods yet. If I ever see George Osbo walking down the street, I will turn his balls into baby bels!

AdrianC

Woah, woah, WOAH!

If you're putting it into a PROPER auction on Feb 12th, and it sells, it'll complete 28 days later. March 12th.

Two months notice to your tenant, even assuming all your ducks are in a row, then they play nicely and leave on time...?

Eeek.

Crashy_Time

If it fetches 295 I will be surprised.

GDB2222

You can’t sanely put it in an auction until after your tenants have left.

mrsmumbles

AdrianC wrote: »

Woah, woah, WOAH!

If you're putting it into a PROPER auction on Feb 12th, and it sells, it'll complete 28 days later. March 12th.

Two months notice to your tenant, even assuming all your ducks are in a row, then they play nicely and leave on time...?

Eeek.

I know. It is bonkers. But I have to try. And it could sell. I am not in any chain. Stranger things and all that. Tenant is being very stoic and likes the last month of rent free idea. It could work. Do any of you have experience with the London auction houses...Savilles, Alsopp’s? Any to avoid?
I think your advice of being really honest and open to the tenant chimed with my gut instinct anyway and it has really smoothed the process. Worst case, they move to a slightly cheaper rent nearby with all deposit and an extra grand in their back pocket. Worst case for me, I sell below the ceiling price (so far!) of 285 and have refurbed and improved a flat I remain stuck with for a bit longer. Which will be meh. But there is no point in me accepting a forty k price drop on a flat from a canny btl investor ...from April, i lose the forty k lettings relief anyway and can get ready to raise rents by November, which would be exactly what they would do. Don’t mind losing some of the tax break and selling at 285 to match the other, which is smaller and just not as good or big as the flat I am selling. Any lower though and may as well hang on. Just dreading get more numbers back from accountant, estate agents and auctioneers.

mrsmumbles

GDB2222 wrote: »

You can’t sanely put it in an auction until after your tenants have left.

What...even if they have found somewhere? Would I get sued?

Oh balls. I think the tenant will leave v soon. The s 21 will require leaving by late March. It...might work?

And a btl buyer might want to keep the tenant. Wouldn’t they need to set up their own AST directly anyway?

What a palaver.

[Deleted User]

mrsmumbles wrote: »

What...even if they have found somewhere? Would I get sued?

Oh balls. I think the tenant will leave v soon. The s 21 will require leaving by late March. It...might work?

And a btl buyer might want to keep the tenant. Wouldn’t they need to set up their own AST directly anyway?

What a palaver.

You could advertise the property as having a tenant in-situ when it goes to auction. It would be risky to advertise as having vacant possession if the tenant could easily still be there when the hammer falls.

A new AST would not be required. The current one would continue with exactly the same terms it's just the landlord that changes.

GDB2222

mrsmumbles wrote: »

What...even if they have found somewhere? Would I get sued?

Oh balls. I think the tenant will leave v soon. The s 21 will require leaving by late March. It...might work?

And a btl buyer might want to keep the tenant. Wouldn’t they need to set up their own AST directly anyway?

What a palaver.

The auction contract is binding on you the moment that the hammer falls. You are guaranteeing that the flat will be transferred to the buyers 28 days later, with the tenant gone. That’s not in your control, and yes of course you’re going to be sued if the tenant does not leave on time.

In short, unless the tenant has left by the day of the auction, you will have to withdraw the property. I’m not sure what fees are due.

You can sell at auction with a sitting tenant, but you won’t get top dollar, and in any case you have served a s21 notice. So, you are falling between two stools.

Allsop are good.

mrsmumbles

Lover_of_Lycra wrote: »

You could advertise the property as having a tenant in-situ when it goes to auction. It would be risky to advertise as having vacant possession if the tenant could easily still be there when the hammer falls.

A new AST would not be required. The current one would continue with exactly the same terms it's just the landlord that changes.

Thanks for this advice. Very interesting. I was there yesterday and now have to redecorate. Tenant v messy and I get it is their hone but blimey they have let it slide.

They just wont tidy up but do not mind if I do!!! It is in their interests.

I could put it into a few early feb auctions and also use an estate agent in case there are local cash buyers, couldn't I?

S 21 gonna get there tomorrow so we are looking at end of month.