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Property/DIY

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Original poster

When to tell tenants I want to sell?

16 replies

Changebagsandgladrags · 14/09/2017 13:33

Have a house mortgaged but due to work relocation it's rented out on a 2 year contract. The two years ends in a few months and we'd like to sell because the move is now permanent.

Tenants are great, love the house etc etc.

We can't go out renting here and renting out there, it's just not financially viable.

OP posts:

Battyoldbat · 14/09/2017 13:36

I'd tell them asap and hope they may want to buy it. Even if they don't/can't, I'd give them as much time as possible to look for a new home

Dumbledoresgirl · 14/09/2017 13:36

Asap. They deserve to know now so they have the maximum time to get a plan together. For all you know, they may want to buy it from you, saving you estate agent fees.

Ecureuil · 14/09/2017 13:38

We were the tenants in almost the exact same scenario recently. They served us 2 months notice and put the property straight on the market. We facilitated viewings (in fact went out of our way to make the house spotless for them) but no offers. The day before we were due to move out (obviously having a young family we'd found another private rental) they begged us to stay as they didn't have a buyer. We said no. They then offered us a bit reduction to buy it. We said no. A week after we moved out they put it back up rent because they couldn't afford the mortgage on it without tenants. They ended up taking less rent than we paid them.
So I don't really know to answer to your question except don't do what our landlord did

Twiceover · 14/09/2017 13:40

You will need to give them at least two months notice via section 21 notice. This can be sent two months before the end of the fixed term to expire at the end of the fixed term. I wouldn't try and sell until you have vacant possession as if they don't leave you would have to bring possession proceedings and the timescale for that can be uncertain.

Original poster

Changebagsandgladrags · 14/09/2017 13:41

If they want to buy I'd be over the moon.

I'm worried about how we cover the period between them moving out and the sale if they decide to move out. We just don't have the cash for that.

Urgh it's all such a mess really

OP posts:

Ecureuil · 14/09/2017 13:45

Yes that was the problem our LL had. They assumed they'd sell before we moved out (I think they thought we'd buy it but we didn't want it), and didn't have any contingency for it being empty.
Obviously with having young children we didn't want to hang around in an uncertain position so found somewhere else as soon as notice was served. They ended up massively out of pocket.

Dumbledoresgirl · 14/09/2017 13:45

I would have thought the costs involved in buying and selling a new house would render a couple of months' rent fairly negligible?

I take it your house is not in a tourist area so you couldn't do some short term lets?

hangingkebab · 14/09/2017 13:46

Give them as much notice as you can. I've been the tenant I this situation twice. One landlord gave us a year's notice (when we renewed contract) which was brilliant, gave us ample time to prepare and have a new property ready to move in to.
The other gave us the required eight weeks. The notice expired on 21st Dec, and I was due with DC2 on Christmas Eve. That was not brilliant.

Original poster

Changebagsandgladrags · 14/09/2017 13:49

The mortage is £1100 a month which is just covered by the rent. We then pay £1100 for the house we rent.

We could cover a month of that if the house was empty but no more really.

We'd be looking to buy a house at around the same value as selling so no saving there either.

OP posts:

MoreProseccoNow · 14/09/2017 13:52

Could you go on to an interest-only BTL mortgage for your rental property?

Original poster

Changebagsandgladrags · 14/09/2017 13:53

Ah that's an idea. I didn't think about that

OP posts:

MoreProseccoNow · 14/09/2017 13:54

Definitely worth a chat with an IFA then. They always have an interesting angle on things & different options.

WhereAmIGoingWhatAmIDoing · 14/09/2017 14:00

You can put it on the market with Tenants but they have no obligation to facilitate viewings, and make the property 'look it's best' for viewings. It is their home until they move out. So it is often easier to sell with a vacant property, and these things can take time. So Goodluck OP, hope it goes smoothly x

Original poster

Changebagsandgladrags · 14/09/2017 14:09

House looks gorgeous, they keep it so well. Also they've repainted (with permission) and improved it really.

If I could afford to keep it going longer I would.

OP posts:

MoreProseccoNow · 14/09/2017 14:15

Also bear in mind Capital Gains Tax if you plan to sell, but equally all the forthcoming taxation changes e.g. Mortgage interest, if you plan to keep it on.

Original poster

Changebagsandgladrags · 14/09/2017 14:17

I did do an online calculator thingy for capital gains tax and it came out that we wouldn't have to pay that much because of lettings relief or something.

OP posts:

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