I need to sell my house with sitting tenants

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    I need to sell my house with sitting tenants

    Hi there, I’m new to this forum, I’m not 100% sure if this is in the right section but it seems like the best fit for my question, please bear with me as it’s a longish post, but it’s important I put all the info down so people can potentially advise me.

    I’m in a bit of a quandary in that I need to sell my house with sitting tenants.

    Firstly a bit of background, I bought a new build property in Bradford in 2005 with my now ex-partner for 122k with a 10% deposit. In 2007 she left me leaving me with a house I struggled to keep on myself, but I just managed, then as we all know the financial crisis hit and the value of the property collapsed to around 80k, leaving me over 20k in negative equity, so in 2013 I decided to rent the property out and move into rented accommodation myself in Goole (40 miles away) with my new partner who is now my fiancé. We have since had our first (and only child) and really need a bigger home.

    From what I can see the value of the property has gone back up to around 100k, leaving me around 8k equity, just enough to by something suitable where I live now, or something larger for around 140k if I get my fiancé on the mortgage.

    Obviously I can’t just put the house on the market as my tenants will simply leave and no-one else will move into a house with a for sale sign outside, and I cannot afford to leave the house empty and pay the mortgage on it as well as the running costs of where we currently live.

    So my question is what do I do? I could part exchange for another new build if I get my partner on a joint mortgage, but I think that would involve us mortgaging ourselves to the hilt on yet another house that will drop in value as soon as we bought it so I’m not hugely keen on that idea.

    Another option is to move back in but that would involve my partner doing an 80 mile round trip a day commute in a 10 year old car, so this option is an absolute last resort. I really don’t want to have to do that.

    It seems like my only hope at this stage is to sell the house with the sitting tenants (who have been excellent and have astro-turfed the back garden at their expense) to another landlord/investor, keeping them in their home and releasing me from this nightmare, so does anyone on here have any experience of doing this or know of any reputable websites or companies that could help facilitate this?

    Basically my life has been on hold for nearly eleven years now and I need shot of this property as it’s got to the point where it’s seriously impacting on our lives and future, so any help or advice would be greatly appreciated.

    #2
    You could go to a few local estate agents and tell them your situation. They may know local buy to let landlords who would be willing to buy.
    Does the rent cover the mortgage? If its financially worthwhile then it will be easier to sell.

    Any chance the current tenants would be willing to buy the house?

    Comment


      #3
      I've not approached the tenants about this yet, I don't want to spook them, but I'm doubt they are in a position to buy or they'd be off I would imagine. Just putting the house on the market is not really a viable option, as they'd just leave, I know I would.

      Yes the rent more than covers the mortgage, but how does this make it easier to sell, it covers my mortgage, sure but that's my situation not a potential buyer.

      Comment


        #4
        I am sorry for the predicament that you find yourself in and one which is not uncommon: I presume that you secured the consent of your lender to let the property and also declared the rental income to the inland revenue by submitting Self Assessments. I ask this as any lender approached for a new mortgage would naturally question the situation that you own a property some distance from where you currently reside and could insist on seeing the necessary documentation.

        If you elect to sell the property with tenants in situ then a prospective investor might seek to acquire the property at a discount of anything between 10% and 20% rather than accepting the price as reflecting the OMV. Given that the value is still below the original purchase price you at least arent faced with any CGT.

        There are indeed a number of firms who seek to buy property on a quick sale basis however the small print might prove completely different and the final agreed price will definitely not be the Open Market Value so BEWARE of such promises. The suggestion of going to agents on the face of it sounds plausible but again this will immediately start the bells ringing that this is a desperate vendor and can get a "deal done" at a different price to what you expect to want.

        Clearly from the comments made , your finances are currently in a strained state and one which does not offer a solution unless you bite the bullet ,make as many financial sacrifices as is humanly possible to build up a fund to cover say four months mortgage payments and then offer the property with full vacant possession , if the tenants arent interested then notwithstanding the improvements they have made at their own expense then give then the requisite notice to vacate.

        I am so sorry that I cannot offer an alternative suggestion.

        Comment


          #5
          Thanks for the replies. It look like I'm in an impossible situation. Even if I managed to save up 4 months mortgage payments, I doubt it would be anywhere near enough as similar properties in the estate have been on the market for over three years in some cases. Maybe the only solution is to part exchange it against another new build, I'm not a landlord nor am I seeking to continue to be one so I'd be prepared to take the hit in value, all I want is an average sized home for my family.

          Comment


            #6
            I think your comment re houses for sale have remained unsold for some considerable time reaffirm my view that anyone seeking to buy For investment would seek a heavy discount from whatever is the perceived market value and potentially there could be difficulties in securing a mortgage given that the market demand seems dead.
            This is a regrettable position you find yourself in and in turn you may still find yourself with a loss on its sale.
            Without wishing to be flippant, is there any chance of you helping your fiancé in buying a newer car in order that she could indeed commute, an 80 mile round trip to and from work is very common to thousands of workers in the South East. Not ideal but maybe worth considering.

            Comment


              #7
              Why not put some more details up here in case anyone wants it?

              (Is that okay mod2?)

              Comment


                #8
                You are a Landlord
                I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                Comment


                  #9
                  Originally posted by JK0 View Post
                  Why not put some more details up here in case anyone wants it?

                  (Is that okay mod2?)
                  No, not really. We see many posts where it's quite clear that people have joined just to buy / sell property or request / offer accomodation, and it's fairer if these things are strictly enforced.

                  Forum members are free to PM the OP (but not the other way round).
                  I also post as Mars_Mug when not moderating

                  Comment


                    #10
                    loanarranger,

                    To be fair the one that has been on the market for three years is at the other end of the development and is overlooked by a dirty great grubby looking block of flats, mine isn't.

                    We're not in a financial position to get her another car, she's driving my old one that I gave her last year as we needed a bigger one as a family car. With childcare, money is extremely tight.

                    Thank you for your reply. It looks like I'm stuck in this situation indefinitely.

                    Comment


                      #11
                      Originally posted by theartfullodger View Post
                      You are a Landlord
                      And? Thanks for pointing this out to me.

                      Comment


                        #12
                        Originally posted by Smellmet View Post

                        And? Thanks for pointing this out to me.
                        I think this is in response to your post where you said “I’m not a Landlord”. Well, you are.

                        Anyways....

                        Disregarding all the personal things in your posts (wife leaving you etc) when you take the emotions out of it, this is quite simply a situation of you needing/wanting to get rid of the burden of that house.
                        Whether you want to admit it or not, you ARE a landlord thus have lots of legal responsibilities. If you no longer want these then cut your losses and sell.

                        I bought a property last year from a guy in EXACTLY the same situation as you. Wife had moved out, he was renting out, met someone else etc etc etc.

                        It was a simple and straight forward purchase, no different than any other, with tenants in-situ who are still there now.

                        I think you’re over complicating this.

                        Comment


                          #13
                          RedHitman , May I ask did you pay the price being sought or did you secure a discount knowing that this was being sold with the benefit of a sitting tenant.

                          Comment


                            #14
                            The property having tenants in-situ didn’t really matter to be honest. I liked the house, knew the area well (as I grew up there and my parents still live locally) and still had some friends literally round the corner and on the same street!
                            As with any house purchase, the seller wants a certain price, it’s advertised at a certain price and ultimately the buyer has a budget.
                            We negotiated on price for about a week maybe.
                            I was at my limit I could afford and after some thought, the seller accepted. He didn’t have to of course! But like the poster, he just wanted rid of the burden.
                            I believe he ended up with about 10k after costs and that was that.
                            (Since taking over as landlord though I’ve had a few issues with the tenants and have started the process to evict them - so selling/buying with tenants in-situ isn’t always a “benefit”! Imagine it like a football club owner who sells - the new owner then may want their own manger (tenant) in and want to get rid of the old!)

                            Comment


                              #15
                              Originally posted by Smellmet View Post

                              And? Thanks for pointing this out to me.
                              You had earlier posted
                              Originally posted by Smellmet View Post
                              Thanks for the replies....etc etc etc....I'm not a landlord nor am I seeking to continue to be one ................
                              I was merely, calmly & politely, pointing out that you are a landlord, IMHO. But I'd be interested in hearing why you may think that, with tenants and a rented-out property, you are "not a landlord".

                              Best regards to all...
                              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                              Comment

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