UK Landlord Forum / Life

Hello, inexperienced (and to be honest, reluctant) landlord here... would be very grateful for advice.

I have been renting a house out to tenants for about 9 months - the house that me and my ex used to live in when together, and still joint own.

When we moved out, the tenants moved in, and the original plan was that they would eventually buy it because they liked it. However it turns out they are having trouble getting a mortgage, so this is now not going to happen. This means we have to put the house on the market instead, which has now been done. Both me and my ex are keen to sell and move on. But the tenants are still there at present.

The question is how to manage the sale of the house with the tenants in it. We are at the '1 month notice required' phase of the tenancy agreement, so there's that. On top of that, we also made a friendly agreement to give each other 2 months notice so that a) they had good chance to find somewhere else to move, b) I'd hopefully have chance to sell and not be left with an empty property I had to cover the mortgage for.

However there are 'counter-concerns' - the tenants said recently they wanted to give their months notice, pay that month's rent, and move out early. Partly because they felt they were in the way, and that if someone does want to buy (it's no chain), they may be put off by waiting for the tenants' notice to expire and for them to get out (true i guess, I could find myself suddenly wishing they weren't there - not that I'd try to kick them out prematurely). They also have concerns about their privacy - pics and videos of their belongings going up on the estate agent website, people coming round to do viewings etc. They'd rather not be there for that.

But then I have no idea how long it will take to sell, and am concerned about it being empty and me having to cover the mortgage for the place for months on end, as well as the cost of where I live now. Plus which, they've made it look quite nice with them in it - helps to sell?

So there are conflicting concerns on both sides... in a perfect world I'd sell it at the moment they moved out, but in reality we're trying to navigate the uncertainty of what will actually happen.

Just wondering if people have any thoughts/experience on navigating this?

Thanks

A

If your tenants decide to give you notice, there's not a lot you can do about it. Assuming you don't just want to get more tenants in, all you can really do is try to get a quick sale, which may mean taking a bit of a hit on the price. What's the rent yield like? You might find a buy-to-letter who's in a position to buy quickly or, if it's suitable for first-time buyers, they have the advantage of a chain-free transaction.

When you say your current tenants are having trouble getting a mortgage, is there anything you could do to help them with that, by recommending a decent mortgage broker or even subbing them a lump of money for the deposit? That might still work out cheaper if it meant you didn't have an empty property for 3-4 months and it reduced your transaction costs and/or you didn't have to take a big hit on the asking price.

Hi thanks for this reply, sorry for the delay in coming back...

Could you elaborate on 'subbing them a lump of money for the deposit?' - so I chuck them some money to make it easier for them to get a mortgage, then they pay me back after the sale? Is that done often?

Thanks

A

Why would they pay you back?

What was probably being suggested is that you grease the wheels... with cash... call it a bribe or an inducement, even a politely referred to 'incentive', it doesn't matter. You weigh it all up and decide what is the best... for you. The clue was in the "work out cheaper"... and the poster was correct. It could work out well for all.

Yes, I was thinking if your tenants move out, you're left with a house that's costing you money and earning you nothing for two months, three months, maybe more. Plus you might end up having to knock a bit off the asking price for a quick sale anyway. If you add all that up, plus the fact that you won't be making any deductions from their deposit, it might be enough to tip the scales in their favour with regard to getting a mortgage.

Hi Mudchild
If your tenants have said they can't get a mortgage I wouldn't advise trying to help them get one or making an incentive offers - that would muddy the waters.
You refer to one month's notice. You have to give them two months' formal notice by way of a Section 21 Notice. If they don't leave once that Notice expires then you would have to issue a claim in the County Court, and it could take you 2-3 months for this process to be completed (sometimes sooner but better to think worse case scenario).
In the meantime you can market the property but can only take internal photographs if they provide you with access. You have to give them at least 24 hours notice - perhaps more if your tenancy agreement says so. If they don't allow you access then you can't force this.
If you are able to market the property and get a buyer, the buyer is likely to want vacant possession before the sale completes. Ultimately you may have to accept that the property will be vacant for even a short period before the property is sold - this is one of the risks with renting property.
I hope this answers your queries.
Laura

Laura Albon
Solicitor
Helix Law
01273 761990
la@helix-law.com
https://www.helix-law.com