Selling property to the tenant(s)

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

    Selling property to the tenant(s)

    This may be a stupid question but I’ve never sold one of my properties before.

    I’m going to sell one of my properties to the current tenants (a life long friend and partner).

    Does the fact they are tenants currently living there make the selling process any different/difficult?

    Thanks.

    #2
    I don't see why it should, as long as you are happy with the price.
    I have sold to other landlords with tenants in situ; this ought to be simpler (because no investigation of the tenancy is necessary).

    Just make sure that conveyancer knows, so that you are not asked to provide vacant possession (or other irelevant standard terms).

    Comment


      #3
      Yep. All amicable and straight forward. Not at the point of instructing solicitor(s) yet but it will be here within a week or so.

      Thanks

      Comment


        #4
        I suppose one potential issue might be a CGT one. It might not really be an open market arms-length competitive sale and no-one really knows what else went on in the background (some sort of price change in exchange for rents etc). Whether that will be queried in reality I doubt. Not sure what "partner" means -- but you might want to get at least some sort of independent valuation.

        Comment


          #5
          Yeah it was a typo that I was too late to edit. Selling to my friend and his partner (girlfriend). Just using the modern day terms as not to offended anyone who might assume I’m assuming genders!

          Comment


            #6
            An old-timer's advice to me when I was starting in this business is never ever sell to tenants. They expect like council tenants to pay less for all the rent they've paid. Ive done it comparatively rarely

            Comment


              #7
              Originally posted by flyingfreehold View Post
              An old-timer's advice to me when I was starting in this business is never ever sell to tenants. They expect like council tenants to pay less for all the rent they've paid. Ive done it comparatively rarely
              Nah this is different. We have already agreed a price that is good for us both. He's a life long friend of over 30 years. It's all good.

              Comment


                #8
                Originally posted by AndrewDod View Post
                I suppose one potential issue might be a CGT one.
                Coud you explain this?

                And does it have any implications for if Labour frce private LLs to sell to tenants at a discount?

                Comment


                  #9
                  Originally posted by MdeB View Post

                  Coud you explain this?
                  CGT is paid on the full market value of the property not at the discounted sale price.

                  Comment


                    #10
                    Originally posted by MdeB View Post
                    And does it have any implications for if Labour frce private LLs to sell to tenants at a discount?
                    The labour proposal is that the state would compensate landlords for the discount (which I am sure would be a simple and non-contentious issue), so the value of the disposal to the landlord would be the market value.

                    The mechanics of the proposal are just another example of politicians not having any experience of the real world.
                    The idea that a government department would be able to release tens of thousands of pounds in any kind of timely manner to allow a property completion is optimistic to say the least.
                    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

                    Latest Activity

                    Collapse

                    • Reply to Dogs
                      by royw
                      What does your AST say about it?
                      05-12-2021, 23:20 PM
                    • Dogs
                      by Bridge2020
                      My tenant has asked if he can get a dog. Where do I stand on this ?...
                      05-12-2021, 11:23 AM
                    • Advice on s.8 & s.21
                      by Hetty911
                      Hi all,

                      Long time lurker, first time poster. Would be grateful for advice on the below.

                      Have a tenant on a AST which expired in July and has rolled onto a periodic tenancy. Over past 6 months rent has been delayed, partial and on two occasions unpaid. 2 months rent is missing...
                      05-12-2021, 22:01 PM
                    • Reply to Accelerated possession order
                      by Hudson01
                      Unless the tenant has dependent children, some, or all with a disability, and some other form of vulnerability for her/him self..... they will be in a crummy emergency accommodation flea pit or a dumpy flat in a place resembling the film set of '' Escape from New York ''. They are deluded.
                      05-12-2021, 20:36 PM
                    • Accelerated possession order
                      by Pariah81
                      A tenant has refused to leave the property at the end of her tenancy and has now asked to be evicted as in her words 'that will make her eligible for a council house'.

                      I am sending an accelerated possession order through the courts but whilst completed the forms noticed two apparent errors...
                      05-12-2021, 18:12 PM
                    • Reply to Accelerated possession order
                      by theartfullodger
                      Thatcher's 1988 housing act makes it clear tenant does not have to leave at end of fixed term

                      Why help tenant take a council property from a more deserving case? I'd decline to serve s21. S8 if possible... (was she ever late with rent?)
                      05-12-2021, 19:17 PM
                    • Reply to Accelerated possession order
                      by Pariah81
                      Ok so it looks like the section 21 notice is invalid as a result of this error. The deposit scheme was not in place at the time of the notice.

                      Apparently the deposit has to be returned in full....
                      05-12-2021, 18:35 PM
                    • Reply to Dogs
                      by ash72
                      The good thing is they have asked you prior to getting one, so the decision is yours. If you do decide then I would suggest you increase rent to compensate for your loss in the future.
                      05-12-2021, 17:21 PM
                    • Reply to Dogs
                      by jpkeates
                      I wouldn't, but it does depend on what type of dog.
                      You should assume your carpets will all need replacing.
                      05-12-2021, 16:21 PM
                    • Reply to STA, Section 8 and Court delays/Christmas
                      by jpkeates
                      Assuming it's an AST (STA's are Scottish)...
                      You don't have to renew the tenancy, just let it become periodic.
                      And, you're right, don't renew it.

                      To repossess, you'll either have to attend court or pay a solicitor to do so on your behalf.

                      If the tenant doesn't owe...
                      05-12-2021, 16:13 PM
                    Working...
                    X