Selling a BTL Property

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    Selling a BTL Property

    Hi,

    In December 2017 I purchased a BTL Property

    It was a new property (albeit a converted building) in a town in Yorkshire

    I bought it outright as was only around £70k (small one bed apartment in city centre)

    I am now having a few financial difficulties and might be forced to try and sell the property

    There in a tenant in the property - signed up till June but likely to sign on for another 6 or 12 months

    I spoke to the investment company I originally purchased the property through and they said it was best to sell via an property investment company as they would have lists of clients the property could be marketed to and any fees (to them) would be paid by the buyer

    However I was told that the market is dead at the moment due to Brexit and none of the Investment Companies are willing to take the property on at the moment until the Brexit issue is resolved one way or the other.

    Is this correct or are people still buying BTL Properties ?

    Any other ways I could sell it ?

    Additionally, I am a bit concerned because my managing agent have just put their fees up due to new legislation and not sure whether its a viable investment nay more unless I reduce the asking price.

    Thanks in advance
    Stanley

    #2
    Forget using a Property Investment Company unless you are desperate in getting rid of the property and being prepared to accept a marked reduced price against the Open Market value. Such organisations are always seeking distressed sales to demonstrate their own ability to provide Below MarketValue properties to those who have signed up to buy such properties.
    If you sell a property with the benefit of a tenant in situ an investor would normally seek a discount on the asking price whereas if you sell with full vacant possession then the unit can be marketed to both homeowner buyers as well as prospective investors.
    Many Agents will try and seek a hike in fees following the changes in what fees they are able to charge prospective tenants, my stance is simple , just say No and find another agent who is more accommodating.
    Brexit is being used as a reason for the market stalling , the reality is that the market is cyclical and after a sustained period of growth since the Credit Crunch finished there is uncertainty across parts of the U.K. and without any disrespect to Yorkshire I cannot seek this locality to be any worse affected Brexit or Not.
    You describe the unit as being a small one bed unit , this type of property is always vulnerable in a tight market and the question you have to ask is How long might this property remain unsold even if the tenant vacates and can you afford not receiving rent but having to pay the Service Charges and Council Rates.

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      #3
      Rather than sell could you get a mortgage on it? Have you considered asking the tenant is they would like to acquire it from you - if they dont have a deposit you offer them a 100% mortgage or they could seek a landlord deposit mortgage https://www.themortgagehut.co.uk/blo...posit-Mortgage

      Some landlords are leaving the business because of tax and legislative changes, this is having a lot more impact than Brexit.

      Comment


        #4
        The article to which buzzard1994 refers is nearly two years old.

        As the article does mention is that the “ Deposit like a New Build Developers incentive is discounted by the valuer in assessing the value of the property and the loan is then based on the lower of the purchase price or valuation.

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