Put my flat on the market...eeep

[Bells3032]

I feel a weight has been lifted. I have been erming and ahhing as it is currently tenanted but my husband and I (we are currently living in his flat) want to buy a house in the next few months so don't want chains plus it has a big mortgage on it so income v outgoing I a basically making zero profit on it.

I have been erming and ahhing for months over whether to put it on the market and finally made that decision and feel so happy - it's the right choice for us and I am so happy.

Eep just hope it gets some interest. Fingers crossed!!

OP you need of get some proper advice ...for yourself and for your tenant.

You will find that landlords do not sell properties with tenants that haven't been served notice. You will find that you cannot serve notice during Covid and actually being able to market this property effectively is therefore delayed at the moment.

Solicitors and mortgage lenders will tell potential buyers (who bizarrely haven't been out off by what you are doing...if ever such a person appears) not to proceed or they will not lend on a tenanted property.

Serving notice requires you to meet specific legal requirements and it's easy to do it wrong and invalidate it. Buyers will be put off viewing a tenanted property and put off offering on one. Even landlords will want to know they can have vacant posession if required as many prefer to start with their own new tenant. They know that giving notice is often just the start of moving tenants on and often tenants don't move out by the date given and it can take a good while.....and who really wants that uncertainty.

When furlough ends and people, lose their jobs, house prices will fall and it will be harder to shift property. Odd little downsides will make some properties very very hard to shift....and a tenant who hasn't even been given notice is a biggie.

Timing hasn't worked in your favour. Covid means you can't ask tenants to leave at the moment and by the time you can, prices might be falling. However, at least you have time now to look into it all properly and get some proper legal advice.

As others have said, it is awful when landlords don't understand their obligations and only see rentals as one-sided rent spinners without realising what is required from them in return. Make sure you know about capital gains tax and all the other issues too that relate to selling property which has not just been your own home. Always best to get a full grasp of the situation and requirements BEFORE acting!

But it's not okay to make mistakes when you are a landlord and have legal obligations towards tenants, who have paid to have quiet enjoyment and the terms of their contract met. Before you become a landlord you need to be fully aware of your obligations and that meeting them might sometimes mean you don't make money or even losses....its up to you to understand that BEFORE you become a landlord.

So, if it is now that you can't afford 2 mortgages and circumstances have changed etc etc, then you need to look at selling up, but accept that you have to do it in a way to meet your obligations to the tenant and also to maximise your chances of selling well. You need to accept that as a landlord you might find you make losses for a while. That is your burden and responsibility and cannot be shifted into the tenant or future buyer.

It might be inconvenient for you to have to wait to sell, but that's tough luck during Covid. You might like to keep the tenant without giving notice and try to sell and the same time, but you will find you can't do both at the same time. Not knowing these things and having them pointed out by others doesn't mean they are jealous or mean....in fact, this thread should give you a real heads up to finding out where all your gaps in knowledge are and to make sure you can meet your legal obligations and take steps towards eventually selling this property.

It's not good coming on public forums if you are so thin-skinned as to think everything is a personal attack. It really isn't. You've actually been given lots of useful comments....which really it was your duty as landlord to already know. Landlording isn't really for you as you don't seem able to appreciate that it isn't just a one-sided money making venture for you but requires you to meet obligations too, even if they are sometimes inconvenient and costly.

So, gather lots much information and advice about how to proceed with giving notice so you can eventually sell a tenanted property. Find out how Covid makes this different and more complicated at this time. Accept your responsibilities and that you will lose out on rent whilst tying to sell. Then start the ball rolling once coin allows notice to be given. If you've left the finances so tight that this will be difficult for a while, you will just have to manage and shouldn't have got into this situation and could have avoided it by not being so ignorant of the realities before embarking on letting and now just have to accept it.

I’m surprised at the agents advise, as unless you sell to another land lord most people will,be very put off by buying some where with sitting tenants.

I don’t think it’s greedy as such, I think it’s a financial decision you’ve had to take, but it is one which limits your market.

Why do people assume because they don't enter every single detail into a small text box that they don't know anything. I wasn't asking for legal advice in my OP and therefore the details are omitted. I know that you are trying to be helpful but to be clear:

1. I am aware that Section 21 notices have been extended
2. my family have had to deal with possession orders before I am fully aware of them and what they take
3. I am aware that tenants don't have to allow viewing although technically in their lease it says they do atm
4. I know it is likely to put people off but figured i'd at least try at this stage and if in a couple of weeks there's no interest then I'll start proceedings anyway
5. CGT is not an issue - i bought my property right before Brexit and it is currently worth less than what i paid for it.

6 my tenants are aware. They are also aware they only need to give me a months notice to quit on their side and that i will likely let them out earlier if they like.

What i also know

1. There is a huge surgence in first time buyers atm who are sick and tired of being at home and/or have saved a bit more from not commuting/going out and interest rates as so low
2. There is an up surge in BTL transactions atm as interest rates are low making mortgages affordable and also meaning savings are worthless so people thinking better to have a second income.
3. Many of the flats in the area are mid to high rise building and cannot be bought with a mortgage at this time due to the Article 14 ruling on cladding and the backlog of getting these done. Meaning my two storey block is all the more valuable.

I am not stupid - i did not rent this property not having a clue what i was doing and I am not selling it thoughtlessly either. It has taken me weeks to come to the decision to sell hence why I was so happy to have finally made that decision in the first post. My circumstances changed and I can't afford to keep it running now. That's unfortunately the risk you tell when you rent from someone renting out their own home - the flat was kept pristine cos it was my baby and not just some money spinner. I love that flat but i have to do what is right for my family.

Thanks for sucking all the happiness. I'll remember not to post anything happy here again

We were renting a property, had been there for 18months and the landlord decided to sell.

We had no issue with viewings and tidied as we would if it was our house we were selling. It was heartbreaking as we really felt at home there but these things happen and are part and parcel of being a tenant unfortunately.

The house sold within 3months, and we ended up buying our first home around the corner.

I hope your tenants are decent people as it makes things so much easier.

Good Luck

Sounds jealous to me...or just delusional on how the world works

Eh? She was only pointing out that, until recently your income paid your mortgage and your Do’s income paid his mortgage, so you can resume that arrangement. What do you think she’s jealous of? Most people have homes and incomes, it’s unlikely she’s unemployed and living in a cardboard box.

@natt256 you sound like lovely tenants. Hope you enjoy your lovely house :) so exciting to buy your first home together

I bought a flat with tenants in situ and it took over a year to complete - because the tenants refused to move out and my mortgage was contingent on vacant possession. It was a massive pain, but the seller honoured the original price despite it having gone up in value a lot, and the tenants did the right thing for them - without being officially evicted, they had no chance of getting social housing. I wouldn’t necessarily be put off offering on another tenanted property, but I would insist on deadlines. I guess it might reduce the buyers interested, but you only need one willing to pay the price you want. Good luck for the sale and your family’s future health.

3. I am aware that tenants don't have to allow viewing although technically in their lease it says they do at

It doesn’t matter what you put in the contract if it’s an illegal requirement. The law trumps the contract. So it doesn’t matter what the tenancy agreement says.

@thatonehasalittecar Thank you. Thankfully I didn't rent to social housing and the agency has offered to find them another property quickly and give them first dibs - i've also offered to provide an excellent reference, if they move quickly then I will likely also offer to pay their moving costs. I didn't want anyone on benefits as my father has had this issue where the tenants basically have to be evicted before they can be given another home. it cost him a fortune in time and money as they don't paying the rent in the meantime too. Was a complete nightmare.

@Bells3032 Just my experience as a London FTB who eventually bought a flat. Most of the flats I viewed had sitting tenants; the agent told me that my solicitor would ensure I did not exchange until the tenants were out of the building. I didn't ask for any reductions on the basis of the sitting tenants, i did ask for reductions but that was on the basis of brexit negotiations/the fact that most FTB at that time with a 400K budget were opting for houses outside london. I wasn't a cash buyer at all, I needed a 330K mortgage in fact, and that didn't put me off flats with sitting tenants (as long as they weren't being sold in situ).

Bear in mind however that most tenants don't take kindly of being told to go. the flat I bought in the end was empty and had no tenants. All the offers that I made on flats with tenants fell through, not really because of the tenant but because the seller refuses to accept low ball offers, even though a tenanted property is often not very presentable during viewings. I also had a horrid experience with a flat in north finchley when the estate agent told the tenant I was a BTL investor (which was really stupid because I am 27 and look about 16), the tenant didn't want to move on account of having a tiny baby and proceeded to give me a running commentary about all the faults of the flat (mould and repairs needed). That was enough to put me off! I don't think that flat ever sold!

@ArriettJones

Yes that's what i said. Though tech their lease says they do they currently do not have to allow viewings - nor would i force them too if they are uncomfortable. I am aware of that.

Surprised at some of the comments on here. The op is perfectly at liberty to sell her property as and when she wishes as long as she complies with all her contractual obligations.

Yes it’s particularly shitty for the tenants having only been there six months, to have to move again, but this is the risk of renting, it’s just really bad luck for them they picked the ops place and that she didn’t just do a six month rental as she was considering selling and wasn’t up front about it. But she was allowed to do what she did

I wasn't upfront cos i didn't know at the time i rented it. things changed

Can not believe the grief you are getting for wanting to see a property to have your happy ever after.
Some bitter, strange people on this thread.
Good luck OP, hope it all works out for the best. X

Thank you @Bluntness100 and @strawberry2017 for the defence.

X

Is it advertised as being for sale with the tenants still in residence and not under notice yet. I think you have the right to sell it.

It's not purely about your "ZERO Profit" as you put it. It's about decency and doing the right thing- remember someone is still paying your mortgage off for you.

How long was the initial contract with your Tennant for? Why not just wait until the contract finishes? This will give them plenty of time to find a new place.

I'm on the other side of this situation, the tenant who's home is being sold. And despite what people have said on here about the risk of renting etc, this is the third time I have had to go through this and it's a horrible experience.

Moving is very expensive, I moved in here 6 months ago having been promised a long term tenancy, but they lied as they needed the rental income to pay their mortgage as the house was not selling. I'm supposed to facilitate viewings, which I have tentatively agreed to so I can stay beyond the 3 months and only move once it's sold. But I will begrudge every second of them.

Interesting reading on here though about what I can and can't do! Some landlords treat tenants as a commodity, regardless of whether it's 6 months or 6 years, it's still their home.

So coming from someone who is going through the same thing as your tenants, either offer them a rent reduction or wait until they have moved, it's not fair otherwise.

What is it with landlord bashing on this site? Landlords provide a much needed product: housing. I let out five properties. I have bought with tenants in situ - it was very straightforward. The tenants wanted to stay and I made it clear I wanted an investment and kept them on at the same terms. I did eventually sell several years later and said I would market it as an investment property if they wanted to stay. As they were expecting their second child and it was only a two bed it was a good time for them to go.
I have had tenants refuse to allow viewings, but I've never had anyone refuse to move out. In most cases the tenant gives notice and I consider whether it's a good time to sell.
I take care of my tenants. I halved two tenants' rent for three months due to their loss of income during the lockdown, however no one seems to realise that means I have a significant loss of income too. You don't go in to Tesco and ask them to halve your shopping costs, or your utility provider!
I provide a quality product. I am happy if a tenant specifies they want a long term lease. I infom them if I think I will be selling in X years. But sometimes life intervenes and the landlord has just as much right as the tenant to give notice.
If your tenants are amenable to viewings great. If you manage to sell to another investor even more so. But do what you need to do for your life - no tenant is thinking they need to consider your circumstances when they decide to give notice.

It’s so weird how people are reacting to your plan. You could give the tenants notice immediately, and then they’d have even less time to move out, so everyone saying ‘they’ve only been there 6 months’ isn’t thinking logically.

That said, you have to give tenants 3 months notice at the moment (Covid) so it might actually be worth doing so, if you’re hoping for a quick sale.

remember someone is still paying your mortgage off for you

Eh what now? They aren’t doing her a favour. They are paying to live in her property at the going rate. What she uses that money for is her business.

FYI its also not paying much if any of my mortgage off. Its just about covering the interest and other fees etc.

In other news the estate agent says there two btl buyers poss interested so fingers crossed :)

Have you thought of offering the flat to the current tenants to buy?

Best of luck to you. My friend just sold her London rental and agreed a sale while tenants were living there. The tenants moved out a day before exchange and the sale was completed a week later.