Pros and cons of selling a property with tenants insitu

macman

Natbag said:

Speaking as a tenant, just chat to them about it, be open and honest. My landlady told me in January that she wanted to sell my flat, two months before the end of the current tenancy agreement, but said I could stay until any new owners exchanged. As it was, I was just about to start looking for my own property to buy and agreed to move out at the end of the agreement, which I did earlier this month, and in the meantime I accommodated all viewings, making sure the flat was spotlessly clean and tidy before each one and going out while they took place. Maybe I'm a rarity, but they might be totally fine with it depending on their circumstances/plans, especially if they are good tenants like you say.

ETA I've just seen your most recent update, glad you got a good outcome!

Very generous of her, but since she had to give you 6m notice anyway, and then potentially wait 9m or more to get possession if you sat tight, she does seem to have been spectacularly ill-informed about basic tenant law.

Natbag

macman said:

Natbag said:

Speaking as a tenant, just chat to them about it, be open and honest. My landlady told me in January that she wanted to sell my flat, two months before the end of the current tenancy agreement, but said I could stay until any new owners exchanged. As it was, I was just about to start looking for my own property to buy and agreed to move out at the end of the agreement, which I did earlier this month, and in the meantime I accommodated all viewings, making sure the flat was spotlessly clean and tidy before each one and going out while they took place. Maybe I'm a rarity, but they might be totally fine with it depending on their circumstances/plans, especially if they are good tenants like you say.

ETA I've just seen your most recent update, glad you got a good outcome!

Very generous of her, but since she had to give you 6m notice anyway, and then potentially wait 9m or more to get possession if you sat tight, she does seem to have been spectacularly ill-informed about basic tenant law.

Yes, I know. She only has the 1 property so probably wasn't particularly clued up about the current rules, bless her. I could have challenged it, but it turned out the timing was perfect for me anyway so I was more than happy to go along with it. She'd been a really good landlady, so I would have tried to be amicable and accommodate her plans if I could, regardless. But it's better for both sides if these things can be sorted amicably rather than getting involved in a long, stressful legal battle for sure, and the only people who really benefit in those situations are those charging expensive fees! 
ETA I was also sympathetic as she'd been furloughed from work and was struggling with loss of income - this was her only rental and she was also renting somewhere herself, so I didn't want to add to that burden.

summergirl40

Mahsroh said:

gina30 said:

We were in the same predicament, put my partner's house up for sale and luckily a btl buyer has bought it and taking on the tenants. We have very lucky the tenant has been very patient with all the viewings and works that we have got carried out. 

Same here. My tenant has been brilliant tbf. 

Once (if) the sale is completed i'll probably send a bottle of wine or something as a thank you. A lot of stress and upheaval for them that they didn't ask for. I'm very grateful. 

We got them a m&s voucher literally the day before the house sold just to say thanks 

David2710

macman said:

Bear in mind that if you do want to sell with vacant possession, then it's not just 6m notice that is required. Once the notice period expires, the tenant is under no obligation to vacate, and it'll take you 9m to a year to gain a possession order, given the huge court backlogs. The earliest you would gain possession is July '22.

A few other points worth noting. A Btl landlord might offer a bit less but they're usually cash buyers with no chain. I think Estate Agents will concur many sales fall through at the last moment due to ftb finance issues and the chain higher up (if there is one) falling apart as a result. As mentioned already, 6 months notice is required (if the tenant wants that option) but after 6 months the tenant could (in order to move up the priority list for social housing) inform the landlord to evict through the legal process. This could take months. Also bear in mind because a majority of private landlords don't accept tenants on housing benefit or LHA, the tenant won't find it easy to find another property in the private rented sector. And especially when furlough ends and many jobless tenants find themselves being discriminated against. So I would conclude the least risky option IMHO is to find a Btl landlord willing to take on an existing tenant.