Selling with sitting tenants

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    Selling with sitting tenants

    Has anyone sold a property with sitting tenants? I've mentioned on other threads about the potential of me selling our rental and we've just redecorated and let with a very nice couple; I'm assuming its the very same sales process but smaller pool of buyers due to the requirement for them being an investor?

    Any forum rules about selling houses on the forum?!

    #2
    You might find that an estate agent who is also a letting agent would have landlords looking to buy properties.
    Landlords tend to be as close to cash buyers as it's possible to get, but are also subject to stamp duty, so the properties tend to convey quickly but you get less money than you would from a private buyer.

    No landlord falls in love with a property and just has to have it.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      I'd want 15% off without vacant possession.
      And only then if I were 100% sure they weren't sitting tenants within the old meaning.

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        #4
        We sold a property with a tenant under an AST and it all went very smoothly. The flat was in a block of largely buy to lets and was offered clearly for sale subject to the AST tenancy. We had a very good take up and the new buyer took on the tenant subject to the AST . The tenancy and the rent was transferred to the new owner under the conveyancing process and the new buyer decided what he was going to do when the tenancy came to an end.

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          #5
          That's great to know, thanks. boletus Why would you want 15% off may I ask? Just curious but appreciate it given the comments from jpkeates

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            #6
            @Hillsy,

            Its the difference between trade and retail price.
            Estate agents will tell you 10% off but I'd want 15% personally.
            Obviously just a very rough rule of thumb depending on circumstances and cash flow.

            Maths example as follows;

            6 months lost rent at £750 = £4500 plus a bit of council tax etc, call it £5K.
            On a £200,000 property even just 5% off is £10K.

            Then there is the income tax and CGT to consider but vacant possession usually comes out ahead.

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              #7
              OK that's good to know and factor in to any negotiations. I had naively assumed having a sitting tenant would be a plus for some investors (not all) but certainly good for the trade/retail analogy, thanks

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                #8
                Hello Hillsy101

                When the did the tenants 1st move in to property you want to sell ?
                Thunderbirds are go

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                  #9
                  My buyers thought of it as a plus point and offered full price. After all, they didn't have to go out and find a tenant straight away, so were avoiding all the costs of having a void period. However, they were specifically looking for a Buy-To-Let investment.

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                    #10
                    Originally posted by 45002 View Post
                    Hello Hillsy101

                    When the did the tenants 1st move in to property you want to sell ?
                    Last month, why?

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                      #11
                      Originally posted by scriv View Post
                      My buyers thought of it as a plus point and offered full price. After all, they didn't have to go out and find a tenant straight away, so were avoiding all the costs of having a void period. However, they were specifically looking for a Buy-To-Let investment.
                      This is the type of buyer I will want!!

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                        #12
                        Originally posted by Hillsy101 View Post

                        Last month, why?
                        As if early enough (1997 or 1989..) it won't be an AST, rather an AT (no s21..) or a "Rent Act" tenancy (nigh on impossible to evict, worth a lot less). Yes, even if with a shiny new signed AST.
                        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...

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                          #13
                          Why did you not sell it with vacant possession?

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                            #14
                            Thanks Artful, that makes sense. I didn't know we might be selling at the time is all Mariner. Events transpired that timing wise really sucked.

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                              #15
                              Would much prefer to choose my own tenants and be sure they'd been checked out to my standards - so I'd want a discount.

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