Can you "easily" sell a tenanted property?

[Rob Matthew]

So, first post in the forum - be nice!

 

Long story short, my wife and I own a rental property (3-bed house in SE18, London) that is tenanted for the next 11months. As we've slowly explored the challenges posed by the new tax regime on landlords, we believe our best move is to continue investing via a limited company...however it won't be cost effective to move our current property to one (switching ownership between us isn't optimal either).

 

Question then is "can we sell a property with tenants in it"? Does anyone have experience of this? It clearly lessens the target market just to BTL investors - does this have a hugely detrimental impact on price?

 

All thoughts gratefully received!

[haf1963]

the majority of tenanted sales i have seen are through the auction and it does seem to make a difference to the sale price - as the buyer has no idea what issues there may or may not be with the tenant. If you want to maximise your return the best bet is usually to sell empty - just my expereince from the midlands and situation could be different elsewhere. Personally I would not buy tenanted myself due to the unknown risk factors - less of an issue at the high end though

[Rob Matthew]

Thanks Haf. They're great tenants, always pay on time etc, but that's difficult to convey in particulars, I guess.

 

appreciate the response.

[PaulDavidThomas]

I've bought tenanted property. If your selling to an investor, as long as they don't want to do capital works on the place, should not be a problem. However, you cut out the whole market of 'normal' people - do you want to do this ?

[Rob Matthew]

1 hour ago, pauldavidthomas said:

I've bought tenanted property. If your selling to an investor, as long as they don't want to do capital works on the place, should not be a problem. However, you cut out the whole market of 'normal' people - do you want to do this ?

Thanks for replying and sharing thoughts Paul. Re cutting out normal people, I think that depends on probability of attracting an investor's bid...which is the impossible, unknown question (without listing it!). 

 

More thinking to do, clearly...

[PaulDavidThomas]

I think talking to an agent about the possible return from having it with or without tenants would help, as they should know.

 

After doing this, if it's in an area where other landlords rent places out, then why not put your own board up and try a private sale. My last purchase didn't involve an agent.

 

Failing that, once you have a figure you are happy with, why not offer it here. Some more seasoned people might want to pay less, some less so could pay more. But the advantage is, you've done the hard work and have got an earning asset up and running.

[Cooke Estates]

Hi it is possible to sell a property with the tenant in it. 

However it would depend on whether this would satisfy the mortgages criteria of the incoming purchaser.

Some mortgages require the property be vacant possession upon completion even buy to let mortgages so a cash buyer may be preferred.

 

Regards

 

Marc. 

[Dermot McCann]

Sorry I did not not read the question properly so I have deleted my entry.

 

 

Edited July 16, 2018 by dermot mccann