Advice on Selling Property with Tenant

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

    Advice on Selling Property with Tenant

    I inherited my parents' 3 bed hourse in the NW a number of years ago, and have a very good long-term tenant. It is managed by a letting/estate agent who have generally been very good also.

    However, with increasing regulation and costs, I wish to exit my situation. My question concerns the best way to go about things, and the best order to do them in.

    I have approached Open Property Group for an initial cash offer and am waiting for them to get back to me. This isn't a distressed sale, but am willing to consider a cash offer if it spares significant inconvenience and other costs. Any of experience of dealing with Open Property Group is welcome!?

    My other options include approaching my agent (and others) and asking them to put the property on the market, either with or without the tenant.

    I would also like to offer my tenant the opportunity to buy the property, but don't know the best way to do this. Many years ago I suggested to her that I would be open if she wanted to buy it from me, but she simply gave me a dirty look, which I took as a "no". She has been highly cooperative, but I expect that knowledge of my wish to sell would make her extremely unhappy.

    Specifically, would it be best to ask the agent to ask her if she would like to make an offer? Or would it be better ask her directly, either in writing or verbally? I'm not sure which would be more prudent - if I ask the agent to do this, would that expose me to an agent's fee on the sale?

    Any other suggestions welcome.

    Thanks

    #2
    Check the agreement with the agent. It's quite possible that their involvement in any sale is part of that agreement.
    If so, it's probably hard for them to enforce, but it's another possible issue.

    Selling the property with a tenant in place is likely to reduce the sale price.
    The market is limited to landlords and they will be paying increased stamp duty and be more canny buyers (they're unlikely to have the same incentives as someone buying to own).

    On the other hand, they're cash buyers (or close to it, BTL mortgages aren't that complex) and there's not going to be a chain.

    Your tenant will have to be cooperative about viewings.
    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
      Agree with the last comment ref the tenant assisting you, if they don't then you will have to evict as selling and arranging viewings with an uncooperative tenant would be impossible.

      Comment


        #4
        Originally posted by Hudson01 View Post
        Agree with the last comment ref the tenant assisting you, if they don't then you will have to evict as selling and arranging viewings with an uncooperative tenant would be impossible.
        Davros25

        How long have the long-term tenants been living there for ,date they 1st moved in ?
        Fed up with nitpickers and rivet counters...

        Comment


          #5
          Thanks to everyone who replied. Will be following for any other suggestions.

          Comment


            #6
            Originally posted by Davros25 View Post
            Thanks to everyone who replied. Will be following for any other suggestions.
            Can I ask again,How long have they been living there for ?

            Thank you.
            Fed up with nitpickers and rivet counters...

            Comment


              #7
              >Can I ask again,How long have they been living there for

              Dec 2015

              Comment


                #8
                As a sitting tenant having been through a sale I would say that your tenant may appreciate being told verbally about the sale prior to receiving a letter out of the blue. A Solicitors letter may not present it in the most diplomatic light so an informal chat first will make it less of a shock. Also being given the opportunity to make an offer to buy even if not in the position to buy may be appreciated. Financial circumstances may have changed since the 'dirty look' last time you asked. Don't expect her to pay any higher than another investor would be willing to pay. She may know someone else that could buy it also.

                On the other hand 3 and a half years isn't that long in the great scheme of things to become deeply attached to a building so it may come down to the inconvenience and costs and possible difficulties of moving, so financial help with that wouldn't go amiss. I don't suppose that option will get too many votes here, but could save you a lot of hassle in the long term. If making a financial offer to leave then I would do that via a Solicitor.

                Comment


                  #9
                  Hey KeepTheFaith - thanks! Your reply was appreciated.

                  I think I got my ducks in row in terms of the order of things to do. But your suggestion to offer some kind of financial assistance if it became necessary is something for me to think about. If she wanted to buy, I would not be expecting her to pay higher than a reasonable amount. I was tenant myself through most of my adult life.

                  Thanks again.

                  Comment

                  Latest Activity

                  Collapse

                  • Reply to Is time more important than money?
                    by Lawcruncher
                    I am not suggesting it is the landlord's fault. I am just saying that, in some cases, if a tenant feels secure he is more likely to take care of a place....
                    27-01-2022, 23:02 PM
                  • Is time more important than money?
                    by jpucng62
                    Just had tenants move out of a property after 2 years. Always paid on time, perfectly pleasant young family who have now bought their own home BUT:

                    House was grimy - looks like they didn't clean properly in 2 years rather than anything overtly unpleasant
                    Garden was left in a mess...
                    27-01-2022, 17:20 PM
                  • Reply to Tenant not paying and letting agent mismanaged
                    by MdeB
                    That is because you have to do things properly for S21 to be valid.

                    Do everything properly and the S21 is valid.
                    Get one thing wrong and it is invalid. There are many things to get right....
                    27-01-2022, 22:54 PM
                  • Tenant not paying and letting agent mismanaged
                    by Beeble
                    We rented a flat out with the local branch of a national estate agent. They were charging a very low fee (that should’ve had my alarm bells ringing) and had a tenant immediately available. This was Dec2020/Jan2021 and the tenancy paperwork they sent to me was minimal.

                    Tenant moved in...
                    25-01-2022, 15:37 PM
                  • Reply to Deducting Cleaning Costs from Deposit
                    by Lawcruncher
                    The requirement comes from the tenancy terms. There are various reasons why a contract term may be void or unenforceable. They include: illegal; impossible; contrary to public policy; statute forbids them to be imposed; unfair. A requirement to keep a dwelling clean and leave it it clean is none of...
                    27-01-2022, 22:20 PM
                  • Deducting Cleaning Costs from Deposit
                    by Piffy
                    I use a Letting Agent. Recently the tenants vacated, prior to the tenants leaving when the letting agent did an inspection they advised the tenants that the property would need cleaning before they vacated. The tenants have now left, the place does need a good clean, the Letting Agents have said that...
                    27-01-2022, 11:30 AM
                  • Reply to Inherited a few rentals
                    by AndrewDod
                    Almost everything is telling you to sell them - far away, no experience, higher rate taxpayer, current environment
                    27-01-2022, 22:04 PM
                  • Inherited a few rentals
                    by Landlord7289
                    Hoping for some advice on this situation from people who may have been through similar...

                    I am inheriting 4 rental properties from my late father. Are there any tips or ideas people would share about this situation?

                    My situation is I am early 30s in full time employment, live...
                    25-01-2022, 15:02 PM
                  • Reply to Deducting Cleaning Costs from Deposit
                    by DoricPixie
                    Lawcruncher,

                    Why does a tenant need to leave the property in a reasonable state of cleanliness if the property wasn't in a reasonable state of cleanliness at the start of the tenancy? Where does the requirement come from? The deposit protection schemes don't appear to take that approach...
                    27-01-2022, 21:11 PM
                  • Reply to Tenant has moved partner in.
                    by Hudson01
                    Totally agree, the classic - still the best. They sound like a nightmare and i would be looking to get rid as soon as i could whilst we still have S21, removing kitchen cupboards !!! In a 2 bed flat...... why the hell would you remove part of a fitted kitchen, what are you going to do with the space....
                    27-01-2022, 20:41 PM
                  Working...
                  X