Selling a house I rent out

malaxim

I ahve a 4 bedroomed cottage that I rent out and have done for 3 years. The present occupier has been there for 18 months, nearly, on a revolving 6 month contract.
Having spent a considerable amount on it in the last 2 years, I have decided its time to sell on, not a good time I know, but as the tenants are a decent if not perfect family, is there any groups, agencies who sell rented accomodation, who aren't rip off merchants?

robpw2

malaxim wrote: »

I ahve a 4 bedroomed cottage that I rent out and have done for 3 years. The present occupier has been there for 18 months, nearly, on a revolving 6 month contract.
Having spent a considerable amount on it in the last 2 years, I have decided its time to sell on, not a good time I know, but as the tenants are a decent if not perfect family, is there any groups, agencies who sell rented accomodation, who aren't rip off merchants?

i would suggest you mae an offer to family see if they wanna buy and also if you sell get it stipulated that the family can stay

dolce_vita

You can sell it with tenants in situ through the normal channels.

But any potential buyers would be looking for a significant discount.

hearts

dolce_vita wrote: »

You can sell it with tenants in situ through the normal channels.

But any potential buyers would be looking for a significant discount.

Why would they be looking for discount? The yield might be very high ;-) and it may be a great investment.

takoo

Hi Malaxim

If you want an estata agent choose a firm where the partners /directors are members of :

• a professional body
• the Estate Agents Ombudsman (ES)) scheme.

As professional estate agents they will have:

• professional indemnity insurance
• client's accounts
• education and training in property metters
• an in-house complaints procedure
• if latter unsatisfactory the professional body's complaints procedure
• confirm your instructions in writing (should do so!).

Also you have recourse to the independent ESO scheme.

Selling the freehold (?) house as an investment rather than with vacant possession (VP) will most probably result in lower prices being obtained in the marketing process.
The tenant (as a "special purchaser") may be willing to pay more than the investment value and even go to the VP value.

Finally, if there is any "development potential" (big garden..?) you may get more by selling with VP and an outline planning permission.

Good luck

Takoo

dolce_vita

hearts wrote: »

Why would they be looking for discount? The yield might be very high ;-) and it may be a great investment.

Buying properties with sitting tenants is quite a niche market, generally overlooked by your average BTLer.

It is generally perceived (rightly or wrongly) that doing so is riskier than starting with an empty property.

Additionally, for the present owners (the OP in this case) to evict their tenants first takes time and money. Then they will usually have to spend more money redecorating, laying new carpets, maybe a new kitchen, doing the garden up etc.... before they can sell the place.

And all that is often reflected in lower prices for properties with sitting tenants.




(but of course, as an experienced "proberdee" investor, you knew that anyway didn't you? )

malaxim

A brief survey of local estate Agents leaves me with the conclusion I'd be lucky to pick up 60% of its last property valuation.
That seems steeper tyhan i thought in such a scenario, although it was in most cases from 'experts' in this field who were known to the Agents I spoke to

EdInvestor

Lenders will usually refuse to go ahead with a mortgage on a property without vacant possession.

If the family are decent tenants they will soon find somewhere else to live.

Biggie

EdInvestor wrote: »

Lenders will usually refuse to go ahead with a mortgage on a property without vacant possession.

If the family are decent tenants they will soon find somewhere else to live.

True unless it's a B2Let in which case they just want to see the AST agreement.

dolce_vita

malaxim wrote: »

A brief survey of local estate Agents leaves me with the conclusion I'd be lucky to pick up 60% of its last property valuation.
That seems steeper tyhan i thought in such a scenario, although it was in most cases from 'experts' in this field who were known to the Agents I spoke to

Which is what I told you in post #3 and explained in post #6

alan44

The key here is what the yield is on your new sale price, which I assume is more than you paid for it (your current yield). Yield = (monthly rent * 1200) / purchase price.

It would need to be more that 6% minimum to interest any sensible investor.

If it's less than that you need to get them out, which is not as difficult as you might think. In fact if they're decent people and you treat them properly, you shouldn't need to go to court. You will need to have them out before people make offers really.

I've bought a tennanted property before now, and getting a mortgage wasn't a problem. The only worry is the quality of tenant though, as you haven't found them yourself. On the plus side you don't need to furnish it, and get rent from day 1.