Section 21 When Selling to Tenant?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Section 21 When Selling to Tenant?

    We are planning to sell our tenanted property next year. We are considering 2 options:

    1) Issue Section 21 to existing tenant (it's monthly periodic) so that we can sell a vacant property on the open market. We don't want to sell it with a tenant in situ
    2) Offer to sell the property directly to the tenant. We'd pass on the discount for agents fees and typical fix up for sale

    We haven't discussed it with him yet because we are unsure how to actually do it. If he accepts, should we issue a Section 21 anyway in case he can't get a mortgage? Are there any other 'gotchas' we should be aware of?

    #2
    I'd tell the tenant what you're planning and offer to be flexible.
    The issue with s21 notices is that the two month's notice isn't really long enough for a tenant to get money together for a deposit and fees, find a property, get approved, possibly wait for it to be vacant and move.

    So confirming that you're giving the notice, but won't enforce it the moment that it expires will help the tenant.

    If they want to buy it, they'll let you know.
    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).

    Comment


      #3
      You would know/ or have an instinct on whether or not the T would be able to purchase the property from the T's income and financial background (have they always paid the rent on time, would the mortgage be less than the rent the T is paying).

      I personally would serve S21 and put it on the open market, trying to give it to one person is highly risky in case it falls through, and you would then have to serve the s21 anyway and potentially have to wait 3-5 months if the T doesn't leave the property.

      Comment

      Latest Activity

      Collapse

      Working...
      X