UK Landlord Forum / Life

Hi! We rented out our former family home through a local letting agency/estate agency. We want to sell the the property but want to know if it's okay for us to sell using a different estate agent to the one we rent through, please?
Thank you!

Yes,of course you can.Has the current agent tried to tell you otherwise?

Quote from: Accland1 on January 18, 2023, 07:03:37 PM
Hi! We rented out our former family home through a local letting agency/estate agency. We want to sell the the property but want to know if it's okay for us to sell using a different estate agent to the one we rent through, please?

As Heavykarma says, yes of course!

But you haven't said whether:

a) The tenant ended their tenancy (or you served them notice and they left), so the property is now vacant?
b) The tenant is still there and you want the agent to serve them notice first?
c) You intent selling the property to another landlord with the tenancy still running?

I actually rent and manage my property myself. Therefore selling a property is down to me.

Now I have great tenants in their for the last 2 and a half years and they want to stay for quite a long while.  I want to sell the property with the tenants in there, so it's a ready made income for someone if they want to purchase it from us.

I'm exploring the opportunity of finding a Landlord who may want to buy it with the tenants staying there and agreeing a decent term.  They are so good and it's a 4 bedroomed property and they have family in South Wales where the property is.  The moved from England and they both still earn some income.   I don't really want to tell them we want to sell, so I thought I would find out if anyone has any experience of selling a property and keeping the tenants there for a while at least.

Quote from: TopRob on March 02, 2023, 06:17:29 PM
I'm exploring the opportunity of finding a Landlord who may want to buy it with the tenants staying there and agreeing a decent term.

One of the consequences of only wanting to sell to a landlord is that you will have massively diminished the pool of people who might otherwise want to purchase your property. There are more people wanting to purchase a home for themselves to live in than want to invest in a BTL.

You are likely to get a lower price for your house than if it was sold without the tenants.

To the prospective landlord, it doesn't matter how good you say the tenants have been because "you would say that wouldn't you" just to entice them to purchase the property (with tenants).

It doesn't matter what length of time the tenants say they want to stay. Their situation could always change and it's difficult to hold on to a tenant if they want to go.

With tenants in situ, a new landlord would simply take over the existing tenancy agreement you have with your tenants by serving them a Section 3 'Notice to Tenant of Assignment of Landlord's Interest' and a Section 48 'Notice to Tenant of Address for Service of Notices'.

Are your tenants on an AST?  If so, when is the end of the fixed period?  Or has that already expired and it has rolled over into a monthly Statutory Periodic Tenancy?

QuoteI don't really want to tell them we want to sell

Obviously, you are going to have to even if you want to sell to a landlord. The property will need to be advertised and the prospective landlord will want to view it.

This is not an ideal way to sell a property.As Handyman says,only a landlord would be interested,and they will want to knock the price down.It is my impression that landlords are getting out in large numbers,so anyone wanting such an investment will have plenty to choose from.
You may find you have no choice but to evict the tenants.

Thanks for these replies guys.  I always realised the negative side of selling to a landlord and you've definitely confirmed my thoughts.  Of course you're right to say that I would say it's a good tenant.  However, they've shared costs in a couple of investments to the house and even carpeted some areas totally at their own costs.  That's evidence easily proven. When I say I don't want to remove them, it's absolutely true but you'll take that comment as you want.  What's important is to just look at all options before the inevitable may happen.  On the plus side if you're going to get 8k or 9k a year for a low maintenance home, inevitably the value does go up. It's gone up 3 times what we paid for it 20 years ago. If you had it for 5 more years, your net profit would circa 45-50K and of course you can still sell it.  So I'm only putting a bit of positive back in, as you rightly let me see the negatives. Solar Panels are fitted as well, but they belong to a 3rd party, who are really good and responsible for maintenance of them.

Anyway, I'm not going to try and sell it here. Although someone might actually be interested, but I just wanted to get other perspectives and hand on heart, ensure I've done all I can to look at all alternatives before we make a final decision.  Thanks

Quote from: TopRob on March 03, 2023, 09:47:36 AM
When I say I don't want to remove them, it's absolutely true but you'll take that comment as you want.

I believe you. You sound like have a good moral compass and your tenants do sound great. But it's nothing to do with how we take your comment; what matters is what a BTL landlord with a business head on might think.

QuoteOn the plus side if you're going to get 8k or 9k a year for a low maintenance home, inevitably the value does go up. It's gone up 3 times what we paid for it 20 years ago. If you had it for 5 more years, your net profit would circa 45-50K and of course you can still sell it.

...purchase costs, second home stamp duty, mortgage interest, running costs, possible agent's fees, tax on earnings, and ultimately the selling costs, plus of course the Capital Gains Tax on disposal. A BTL landlord would (should) factor all of these into to price they offer you.

I hope you do find a landlord to purchase the house at a good price.

You're absolutely right on all of that Handyman. Thanks.
Capital Gains on this one is about £700.
No stamp Duty in Wales, but it's Land Transaction Tax and that's going to be £0 as well.
Mortgage...yes I agree of if someone wants to reduce their tax by investing cash... Hmm.  Also as we know, depends on what deposit they have. Running costs. Insurance, Gas Safe and 5 yearly check...
Just some things to add as facts on this one, but all your points are right and they have to be factored in.

I will be asking the tenant if they want to buy it of course, or perhaps a family investment.  Just want to cover all angles before a decision and prepare to inform them if it's what we do. That's not going to be something I enjoy.