Selling with sitting tenants

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  • Hillsy101
    started a topic Selling with sitting tenants

    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?!

  • RedHitman
    replied
    I meant from a legal stand point with the solicitors etc it was no different than buying another property.
    I guess I was in a fortunate position as I knew the seller so I had all the information to hand with regards to the tenants and tenancy etc.
    But yes, you’re right, it’s good to check the tenancy details and understand what you have to do as the new landlord with regards to the other stuff.
    I was merely Referring to the buying process...

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  • theartfullodger
    replied
    Originally posted by RedHitman View Post
    I purchased a property last year with tenants in-situ, the process was no different than buying another house.
    Other than checking - start with asking tenant - when they 1st moved in so you are sure it wasn't an AT or Rent Act tenancy: Yes, even if there's a shiny new signed AST...

    & serving notice(s) complaint with s48 & s3: Or no rent due (s48) and possible fines and criminal record (unlikely - s3..)

    Amazing how many "expert" letting/estate agents appear to never had heard of the s48/s3 issues...

    Leave a comment:


  • RedHitman
    replied
    I purchased a property last year with tenants in-situ, the process was no different than buying another house.
    I liked the idea that I didn’t have to go out and find tenants and had instant income. But to each to their own.

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  • MdeB
    replied
    The last place I sold, I put it on the market when tenants moved out; I gave it 1.5 months (whilst I decorated and went on holiday).
    No interest at all, so I let it, but left it on the market.
    3 months later it sold with tenant at the asking price.

    However, I was not in a rush to sell; I am disposing of properties as they become vacant, so I could have waited a year for the right buyer to come along.

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  • buzzard1994
    replied
    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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  • Hillsy101
    replied
    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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  • mariner
    replied
    Why did you not sell it with vacant possession?

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  • theartfullodger
    replied
    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.

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  • Hillsy101
    replied
    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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  • Hillsy101
    replied
    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?

    Leave a comment:


  • scriv
    replied
    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.

    Leave a comment:


  • 45002
    replied
    Hello Hillsy101

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

    Leave a comment:


  • Hillsy101
    replied
    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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  • boletus
    replied
    @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.

    Leave a comment:

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