Selling a tenanted property
I have one property in Manchester which is tenanted and I would like to so sell it but keep the tenants renting. How do I go about this?
Asked on Nov 26 2013,
Selling in Farnham |
It is indeed possible to do this, and relatively easy as well. You would just need to speak to the tenant first and foremost and let them know what you are planning to do. Presumably they would be on board with this.
The best way to go about things from there is to simply agree on a deal with yourself, the new landlord and the tenant. If all three of you can sit down after an offer has been accepted and work out how to transfer the tenancy from yourself to the next landlord then this is the easiest way to go about it.
If you are using a letting agent, it will probably be even easier, as they will be able to act as the middle man, and as long as the new owner plans to use the same agent, then you will be able to make the transfer of contracts very easily.
Basically, as much communication between yourself and your tenant as possible is essential in this situation. Make sure they are happy to move between landlords and that all parts of the new tenancy are agreed to and signed so you know there will be no hiccups.
Answered on Nov 28 2013,
The Zoopla response is fairly comprehensive but there may be a couple of other issues to consider.
If your buyer needs a mortgage, there may be some lenders who have an issue with a tenant remaining in the property so this is something that the selling agent should check with the buyer's broker when they are agreeing the sale and there may be some legal complications depending on the type of property you are selling.
In addition to the parties mentioned in the answer above, discuss the situation with both the selling agent and your conveyancer before you embark on the selling process.
My only final thought is this: whilst you may feel a sense of loyalty to the tenant, have you considered that by selling with a tenant in residence you may be limiting the number of buyers who may be interested and thereby limiting the potential selling price. I can understand the benefits of having someone staying at the property rather than leaving it empty, but another option might be to incentivise the tenant to stay until a sale is agreed and if the best buyer at the highest price wants to keep the tenant so much the better.
Answered on Dec 1 2013,
Sell the property with 'sitting tenants' to another buy to let landlord. The challenge you may face is that another buy to let landlord may want to get less than market price for your property. They are buying your property as a business and will negotiate hard, especially as they know you can only sell to a buy to let landlord.
Something else you may want to consider are the handing over of the tenants to the new landlord; they should really sign a new contract and go through the full moving in check lists again. You'll also need to transfer their deposit back to them and they'll pay it to the new Landlord. Most of this affects the new landlord, but don't make a mistake with the tenants deposit otherwise you could face some rather hefty penalties.
Answered on Aug 3 2014,
I've come a cross you're post again recently, and I did answer this ages ago but forgot to reply!
It’s a very common situation where people would like to sell a property but they have tenants in situ that they don’t want to lose, be it for sake of retaining the income while the property’s on the market or just not disturbing the tenants.
This is fine, there are plenty of landlords who will look to purchase property that’s already let, however, I think it should be made clear that you will be reducing the potential catchment of buyers that you have.
Of course you won’t be able to sell to first time buyers or to people wanting to occupy the property with their own families. So, in view of that, generally prices of property with tenants in, is a little more depressed than a vacant property.
So, you will need to bear that in mind. But on the plus side, you will retain your rental income right up until the moment that you complete.
So, it’s a situation you need weight up for yourself.
Hope this can help anyone in the same situation.
Jonathan Rolande :-)
Web reference: http://housebuyfast.co.uk/blog/selling-a-tenanted-property/
Answered on Sep 23 2015,
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