Selling property to the tenant(s)

[RedHitman]

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.

[MdeB]

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).

[RedHitman]

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

[AndrewDod]

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.

[RedHitman]

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!

[flyingfreehold]

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

[RedHitman]

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.

[MdeB]

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?

[Mrs Mug]

Coud you explain this?

CGT is paid on the full market value of the property not at the discounted sale price.

[jpkeates]

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.