When to put London house on market?

[Perkyduck131]

We have a house in south west London with tenants in it until end of August. Does anyone have any advice on when would be the best time to put it on the market?
Obviously anyone buying it wouldn’t be able to benefit from the stamp duty holiday so slightly concerned at how that may impact the amount of interest we get/ price! Was thinking around May time but unsure if that’s too soon given they wouldn’t be able to complete until a few months later.

Won’t it be off-putting to potential buyers that it has tenants in it?

Would your tenants allow viewings and if so, would they tidy the place for viewings?

If viewings would be ok, I think early June would be more reasonable. Usually take about 12 weeks to complete these days I think.

Now! Get the spring market. We are in SW London and about to put ours on (though off market at first).

I think you will get a better price if you market it empty. People will be worried about the tenants not leaving at the agreed time.

Remember that under covid rules you have to give your tenants a much longer period of notice than it says in the lease and in the prescribed form. Unless they choose to go sooner of course!

Put it on the market once the tenants have left. It's much more appealing to buyers empty as PP have said. Also easier to conduct viewings.

I opted out of a near-perfect house because it had tenants in it and it wasn't clear how long the notice period was (estate agent said one thing, tenants said another!). On that basis I'd wait until they're out if I were you.

After your tenants have left.

Thanks for all the responses- our tenants have only signed a year contract and we’ve expressed that we are considering selling (although not formally which I guess we need to?) thanks for the heads up re the Covid rules surrounding this- had no idea! I’m just worried that if we wait until tenants leave it may impact the amount of viewings we get as will be end of the peak season?

And you may need to offer an incentive to tenants so that they arent obstructive to viewings.

I have just been house hunting with a friend and two or three of the houses had tenants in.

For one we couldnt get an appointment to look at as the estate agent said he couldnt contact the tenants to gain access. On another the estate agent cancelled 2 hours before the viewing because tenants were unwilling to have people round that day due to working from home etc (understandable but frustrating for us as buyer). These houses are still for sale, my firend having agreed to buy a house with vacant possession.

One of our firends who was renting said that her landlord who was looking to sell had agreed with her two or three days at weekends in advance for the viewings so she went out for the day. He offered the incentive of a cash payment if the sale went through which my friend appreciated (but she was happy to move out so didnt feel any loss, I imagine the situation is more fraught if the tenants dont want to go)

I'd put ot on sooner rather than later, though you have missed the traditional peak season. The property market is still going strong, even though as you say most offering now will not complete un time for theater stamp duty deadline (though could still save £2,500). People like to be settled before the new school year too.
Are your tenants happy to allow showings? Do you think they will leave or will you have to evict them? Really it's up to your tenants- if they say no viewings then you can't market it.

Thanks @sophde that’s really useful. Would definitely be willing to offer an incentive but I think they may be reluctant to move as they’ve barely got a chance to experience the London life over this past year! Which is fair enough.
Also appreciate it’s completely different having house viewings when working from home and don’t want to take the mick, so agreeing some times up front seems fair.
It needs some paint and new carpets anyway (we had two toddlers and didn’t plan to re decorate until they got older) so maybe waiting until tenants left would be for the best!

Thanks @Changingwiththetimes - thats a good point re schools. I would say we have a good relationship with the tenants and they seem reasonable but I think what we may be expecting of them in terms of allowing viewings is definitely pushing it and they are well within their rights to say no.
We manage the property through an estate agent so have given them notice but not the tenants so will broach it with them. Is there a format for a formal notification we should be giving? I assumed it would come through the property manager but hearing all this don’t want to chance it!

Your section 21 to the tenants will need to give 6 months notice under Covid rules. You can't issue it til the fixed term has ended - unless you are appealing to a BTL investor then you may be better off waiting til the tenants have left

Is a section 21 still relevant where there’s only been a year contract agreed? We also moved on 28th august and from looking at the website it was 29/08 that the six month notice period started.

You have to give them 6 months notice because of covid, the year contract will roll on unless one party gives the other side notice. So if they're not planning to move out at the end of the 12 month term, serve notice now.

I would say wait until they're gone to put on the market, I am doing similar here. Notice given last September, they are going at the end of this month. Then we will get in touch with the estate agents.

@CrotchetyQuaver oh god I had no idea about that! We’re paying the estate agent to manage the property and they’ve known we were planning to sell since Xmas so you would’ve thought they might have mentioned that...

Yes, you needed to have served notice at the beginning of march. you still have to serve notice even if it is a yearly contract. Soonest you will be clear now is mid October if you serve notice tomorrow. In addition most buyers won't want to make an offer on somewhere with tenants in unless notice has been served and if they are sensible they won't exchange until you have vacant posession.

Ah thanks for that - will get on it tomorrow. We’re in our rental for another year luckily so not in a rush, otherwise this would be huge problem!

Does anyone know then, if I speak to the tenants and they are happy to leave in August what the status would be then? Should I get a solicitor to draft another contract confirming their agreement or would they still have right to stay? I appreciate we should’ve been more ‘on this’ ourselves, but can’t help feel slightly put out by the fact we’ve been paying a significant amount for someone to manage the property and then sell it for us and they’ve failed to mention this!

Make sure you serve in the prescribed form. Cant see any issue with them waiving their right to stay (if they are happy to). It’s there for their protection not to force them to stay longer if they are happy to go.
Don’t blame you being annoyed with the renting EA but it doesn’t surprise me in the least! Make sure you go elsewhere for marketing...

Could you speak to your agent a out marketing it as a buy to let? If the tenants pay a decent amount you might be able to sell it on to another landlord?

OP have you seen this thread?
www.mumsnet.com/Talk/property/4224506-buying-a-property-with-tenants-in-situ

You would still need to serve notice on the tenants however legally they have 6 months from the date served.
There’s a massive eviction backlog so if they didn’t go you could be looking at a legal battle of a couple of years