UK Landlord Forum / Life

Hi... bit of a long story but will try to keep it brief.  I bought a flat in a high rise 15/20 years ago as an investment with some cash I inherited.  Quite cheap, the property is about 80 miles from my home city but I couldn't get a mortgage at my age, so at the time it seemed the best option.   Anyway after a few years of managing it myself, some good tenants, some awful ones... because of ill health, mother with dementia etc etc... after a bad experience with nasty tenant, I left the place empty for about a year because I couldn't cope, then thought I'd put it in the hands of an agent as any income was better than none.   So roll on a few years, a small income dripping in (it is in a low value area ie. approx. £375/£400 per month - minus agents commission and maintenance charges).   It must be one of the few areas in the country where property prices have not leapt up in the last 15 years.... in fact, I would be lucky to get back what I paid for it.

My problem now is that I live in a tied accommodation property that is tied to my partners job.   We have been here for over 15 years.... we could be asked to leave in next couple of years or it could be another 10 depending on his retiring.  It is owned by the local council and when we eventually leave here, we will most likely go our seperate ways, leaving me in a very unsecure position as my name has never been on this tenancy.   My hope is that the council would rehouse me, being over 70 years old now but people have said that as I own this flat, 80 miles away from my family and friends, they would not be under any obligation.

So I am thinking that it is in my interest to sell the flat.... it is not even a good investment.   I have made no profit in all these years.

My problem is that it has sitting tenants at the moment and is in the hands of a management company that unfortunately aren't estate agents as well.    I don't have the energy, health or enthusiasm to sort this out as there seems to be so many steps to have to take.    I did think of offering first refusal to the tenants but don't think they will be in a position to purchase.  I did some research to see that it is possible to sell a property with sitting tenants but I have the complication of the agents.   

There is also the Leaseholder management company I pay the maintenance to..... do they have any say in the matter?    I am very unsure of what steps to take first..... so any help or advice would be greatly appreciated.  Thanks.

Do I assume that you paid cash,and have not borrowed against it at all?  I am not sure what you mean by sitting tenants.It is my understanding that any tenants taken on in the years you refer to would be on AST contracts.
Would it be out of the question for you to give them notice to quit,and move in there yourself,even if only for a year? If not, you can appoint an estate agent to market the property,with little effort required from you. I am assuming from what you say that you want out now,rather than wait for your partner to retire? You're  going through a very anxious time all round,and maybe you are jumping ahead of yourself.There seem to be too may ifs and maybes in the situation.  I think you need a break to clear your head,and maybe get a trusted person to take on some of the information gathering for you to consider. I doubt if you would be eligible for social housing while you still own the flat.Good Luck.

It's certainly possible to sell a property that has a sitting tenant.  I'm in the course of buying one right now.

Anything can be sold, at the right price... with or without Tenants in situ... it's just a pricing exercise and, as you have no liabilities attached to the property, you can afford to be flexible. I'd start to put in place plans to sell the property with vacant possession myself.

I am unsure how the complication of the Agents add to the idea of selling with Tenants... plenty of Landlords buy properties with Tenants in them, Agents are usually an irrelevance. You'll need to provide more thoughts on this aspect if you want further feedback.

Thank you for your replies.... will try to clarify a few of the questions raised.

HeavyKarma... Yes, I paid cash £35K.  I have done some checking into recent sales and one went at an auction for £25K, another, presume private sale £45K but on average they seem to go around the £35/£40K.    It would be out of the question for me to move in there.  I have too many commitments in my home town with family and friends.  I have known I need to sell the flat for a long time now but have kept putting it off but not having a trusted person to help, I have decided to try to do my own information gathering.... hence this post as a start.

Hippogriff.  You are saying that it makes no difference whether or not I use an agent when it comes to selling with a tenant insitu?

I have been tempted to try one of these websites where it says to type in the postcode and they will come up with an offer within 24 hours.  I realise that the offer will be silly money but I guess like Hippogriff says, it would be a pricing exercise and I would have to decide whether to take a much lower offer to sell quickly or do a lot of the work myself to get a higher price.

Am I right in remembering that there was recently something in the news about a new rule to protect tenants whereby they cannot just be given the 2 months notice anymore?   Is that something else I would need to consider?

You are currently o.k.to give 2 months notice.If the new law came in,it would be some time yet before it would affect landlords-maybe a year or so? I would strongly advise you not to take a silly price for your place,if this is your sole capital.Have you kept the place in decent nick over the years? If it is very run down it could be worth getting at least some redecorating done to get the best price.You are not yet desperate for the cash,so try for a private sale.Maybe someone on here might make you an offer! 

That's a relief about the two months notice!     No I don't think I will be tempted by a silly price.... I am not yet that desperate 

The management company have been keeping the place in reasonable nick, if their phone calls and bills have been anything to go by.   Not sure about the general décor but anything structural, toilet, shower, cooker etc have all been replaced.  In fact because of Grenfell, high rises seem to be tightening up on fire hazards and just a month ago I paid out £2K on new fire doors etc recommended by the Fire Dept and local council.   That with the 6 monthly maintenance charge, more or less wiped out any little profit I was slowly gathering!

I think my next step will be to ring the management company tomorrow morning and discuss the situation with them.   They have always been very kind and understanding when I have been stressed out with my mum etc.   I am thinking that because I have good tenants in there at the moment that they would rather keep them and move them on to another of their properties than to risk losing them to a new owner who wanted to manage the property themselves.   In that case they would handle the notice etc for me and hand me back my property, hopefully in reasonable nick!

I am always open to offers!