Accidental landlord trying to sell

gazfocus

If your mortgage is increasing, you need to see if a new rent can increase enough to be ‘in profit’ once the mortgage increases but as others have said, I wouldn’t get new tenants if you’re end goal is to sell the house. 

I also wouldn’t bother with home buying companies. We looked into those (my mums ex used one) and they basically offer you x amount for your house, then list it themselves for the market rate and you have to wait for them to exchange contracts with their buyer before they pay you so you might as well just sell it for the market rate yourself. 

PierremontQuaker03

I feel your pain brother, I managed to get my tenants out and sell my house, but I was crippled financially for four months paying all the costs while the sale went through (like you my mortgage deal had ended so my monthly payments went up). I sold for the very same reasons as you, very little return due to the government screwing landlords on tax plus the increase of regulations. This is why we will see a shortfall in rental properties as landlords like me and you have called it a day.
Anyway, you said "if the tenants move out" on your post. My plan would be to try and keep the current tenants in as long as possible while you are trying to sell. I would do this by not increasing the rent and say as soon as you have found a buyer you will give them notice - which is usually around 3 months for it all to complete. At lease then you will have some money coming in to ease the pain, and you can explain to potential buyers that the tenants are under notice and are aware the property is being sold. Ideally I would want to get in the house to decorate if required to make the property a but more desirable.

samp17

Thanks for the comments everyone. I think I need to take the risk and try and sell it as vacant. That will be more desirable for potential buyers and I will just have to hope that it doesn’t take too many months. 

I will also see if I can move my mortgage to the 6-month interest only to try and reduce expenses during this interim period. 

theartfullodger

samp17 said:

Like a lot of people, I became an accidental landlord when I moved in elsewhere with my partner, and started renting out my apartment. I have been doing this with consent to let on my mortgage. 

....

So you "accidentally" applied for Consent to let then "accidentally" supplied & signed all the paperwork for tenancy??

Best wishes to all.

TheJP

There is no such thing as an accidental landlord. Just sell up. 

samp17

Okay, to clarify for those posting it, I am not an ‘accidental landlord.’ But I did not want to be a landlord is what I meant. The situation forced me to become one. 

I had to relocate for a new job which just so happened to be in the same city as my girlfriend. The short notice meant I did not have time to sell the property remotely so I handed the keys to a letting agent to manage. I have done so at great cost to me, and not for investment. 

Perhaps this is my answer, I do not want to be a landlord. I want to sell the property. The difficulty here is whether or not I can afford to sell the property. Hence asking on advice or opinions. 

theartfullodger

samp17 said:

............. Next month is the end of my fixed term mortgage and repayments start getting crazy, on top of this, ...........

OK & thanks for later clarifications.. Assuming you mean it's not the end of the mortgage term, merely the end of the fixed rate period.

You've been completing SA tax returns for your rental income?? You have kept records that you'll need for CGT (assuming there will be a CGT) when you sell?? 

IMHO (others will hold alternative views..)

Ask tenants nicely to go (explain why, offer flexibility on move-out dates - either v quick eg tomorrow or very slow), that (If justified) you'll provide excellent reference, then having got vacant possession sort anything out that needs sorting (ask 3 local selling agents - you might be surprised some might say do nothing) , sort it then place on market having shifted out as much as you can (makes it look bigger). 

Worked for me (sold 4 properties in last 4 years, 3 sole, one joint (death of relo , sister joint inheritor).

Recognise you may lose money: Good luck.