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Original poster

Selling with a tenant in situ.

26 replies

HenryHorse1 · 16/04/2022 16:14

Hello! I am in a bit of a quandary. We are looking at selling a house which we currently rent out. The tenants are bloody lovely and I feel sad that we have made this decision, but it is the right decision financially for us. So I have a question....

I have asked locally if anyone would be interested in buying the house. A lady has come forward saying she is interested and would like to rent it out, the tenants get to stay, and we avoid estate agents fees. Positives are the lovely tenants get to stay, we avoid the estate agents fees which will be around 2.5k and should be a fairly straight forward and quick process.

But, houses in this area don't come up very often, the estate agent thinks that people will be fighting over it and we may get people bidding it up if we went with an "offers over' price. So we could get more money for the house by going through an agent. Downsides are the lovely tenants will lose their home, it may take longer if people are in a chain, it may be messier and more work with viewings etc.

What would you do?!

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Theyweretheworstoftimes · 16/04/2022 16:25

www.nationalpropertybuyers.co.uk/selling-a-house-with-sitting-tenants-the-ultimate-guide/

Might worth a read?

coldandverytired · 16/04/2022 16:25

Do you need the extra money? for example if you are in dire financial straits and need the additional funds then the answer is obvious.

Conversely it is the tenants home, they have paid for you to keep the property up until this point and I personally believe that if you do not need the money more than the tenants need their home then morally selling with in-situ tenants would be preferable especially given the hassle of evicting, chains, potential for void if the sales falls through etc. If you are a magical place where they could secure their choice of rental properties as there is such supply then perhaps that changes things.

Have you asked the tenants if they would be interested in buying?

IncompleteSenten · 16/04/2022 16:26

If I really needed the extra money then I would.

GreenWheat · 16/04/2022 16:30

Sell for the highest price you can. You will never regret having an extra chunk of cash. At least get it properly valued by three estate agents. You don't have to sign up with them to get the valuation.

Nothappyatwork · 16/04/2022 17:01

Tbh id get as much money as possible for the house and if you feel guilty offer to pay the tenants removal costs - tax deductible- and likely to be cheaper

VioletVesper · 16/04/2022 17:05

The estate agent is bound to say that as they ultimately want their commission. I would get it valued though, so you have something to compare the current offer to.

Hostaswordwoman · 16/04/2022 17:08

When selling mine, I went for the easiest, quickest sale, rather than the most money I could get for it.

Starlitexpress · 16/04/2022 17:08

How do you know the new buyers won't just evict them and take the bigger profit?

sunshinesupermum · 16/04/2022 17:08

Get three agents' valuations and ask the tenants if they want to buy before offering on the open market.

toddlingabout · 16/04/2022 17:12

The tenants might not be able to move though. The rental market at the moment is terrible, there is a 2 year plus wait on council houses even for the most in need, so you could be making a family homeless by evicting them.

It might be best to speak to the family and find out their take on it all. They could start looking without the threat of eviction. If they are in a good financial position, they might even want to buy it off you.

FairyCakeWings · 16/04/2022 17:13

How much is this lady offering compared to what the estate agents think you will get? You need more than one valuation.

Original poster
HenryHorse1 · 16/04/2022 17:40

@coldandverytired

Do you need the extra money? for example if you are in dire financial straits and need the additional funds then the answer is obvious.

Conversely it is the tenants home, they have paid for you to keep the property up until this point and I personally believe that if you do not need the money more than the tenants need their home then morally selling with in-situ tenants would be preferable especially given the hassle of evicting, chains, potential for void if the sales falls through etc. If you are a magical place where they could secure their choice of rental properties as there is such supply then perhaps that changes things.

Have you asked the tenants if they would be interested in buying?

Thanks, yes we have asked if they would like to buy and offered it to them at a reduced price but they are not in a position to buy. Also, the sale will be outside of their contract, so technically we wouldn’t need to evict, just serve them their notice.
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Original poster
HenryHorse1 · 16/04/2022 17:49

Thanks everyone for your thoughts. Has given me lots to think about

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Aquamarine1029 · 16/04/2022 17:52

Get the absolute most you can get.

VeniVidiWeeWee · 16/04/2022 18:13

And when you serve them notice and they refuse to move?

More costs with the court case, bailiffs etc.

Original poster
HenryHorse1 · 16/04/2022 18:21

@VeniVidiWeeWee

And when you serve them notice and they refuse to move?

More costs with the court case, bailiffs etc.

Thanks, I honestly don’t think they will, like I say they are absolutely lovely. We have found another rental property for them not far away from ours which they have put an application in for. I understand that if circumstances were different then yes I would need to factor all that in too
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Original poster
HenryHorse1 · 16/04/2022 18:22

@Theyweretheworstoftimes

https://www.nationalpropertybuyers.co.uk/selling-a-house-with-sitting-tenants-the-ultimate-guide/

Might worth a read?

Thanks! Will read tonight!
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Original poster
HenryHorse1 · 16/04/2022 18:25

@Nothappyatwork

Tbh id get as much money as possible for the house and if you feel guilty offer to pay the tenants removal costs - tax deductible- and likely to be cheaper
Thanks. That’s a good idea. They are just so lovely, we are gutted to be having to sell. We are not in dire straights but selling would make a massive difference in terms of work/life balance. Other half is currently working 2 jobs, sometimes 80 hours a week, and with the cost of everything going up too this would massively take the pressure off. I do also think that property prices are reaching their peak and there may be a wobble soon, so will we kick ourselves if we wait to sell?!
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Original poster
HenryHorse1 · 16/04/2022 18:27

@Hostaswordwoman

When selling mine, I went for the easiest, quickest sale, rather than the most money I could get for it.
That’s what I’m thinking, the whole process is stressful so is it worth the hassle for a bit more money?
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Original poster
HenryHorse1 · 16/04/2022 18:27

@Starlitexpress

How do you know the new buyers won't just evict them and take the bigger profit?
Fair point! Didn’t cross my mind! I was just thinking of the tenants
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Original poster
HenryHorse1 · 16/04/2022 18:30

@toddlingabout

The tenants might not be able to move though. The rental market at the moment is terrible, there is a 2 year plus wait on council houses even for the most in need, so you could be making a family homeless by evicting them.

It might be best to speak to the family and find out their take on it all. They could start looking without the threat of eviction. If they are in a good financial position, they might even want to buy it off you.

Luckily there is currently another property for rent just around the corner for a little bit more money. They have put an application in. We have said that we will take the process at their pace, within reason, they can dictate the date they move out if they do need to move out, it is all very civil
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Original poster
HenryHorse1 · 16/04/2022 18:31

@FairyCakeWings

How much is this lady offering compared to what the estate agents think you will get? You need more than one valuation.
The lady has suggested 200k, estate agents are saying to list at overs over 200k
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ResentfulLemon · 16/04/2022 18:57

so technically we wouldn’t need to evict, just serve them their notice.

All great in theory, but if they can't secure a new home in the notice period then you have sitting tenants that will need to be legally evicted. That could take more than a year with the current backlog in the courts. All legal advise tells tenants not to voluntarily leave a property until legal eviction via bailiffs if they have nowhere else to go because councils will not help.

We had a 6 month period on a section 21 for landlord sale thanks to covid, and despite starting to search immediately and not being fussy we were lucky to secure a new let 4 months later. It's absolutely brutal as a renter at the moment even with decent salaries from stable companies.

You'll only get top ££ for a vacant possession.

ResentfulLemon · 16/04/2022 18:58

Sorry cross posted. Looks like you have all angles covered.

Original poster
HenryHorse1 · 16/04/2022 19:09

@ResentfulLemon

so technically we wouldn’t need to evict, just serve them their notice.

All great in theory, but if they can't secure a new home in the notice period then you have sitting tenants that will need to be legally evicted. That could take more than a year with the current backlog in the courts. All legal advise tells tenants not to voluntarily leave a property until legal eviction via bailiffs if they have nowhere else to go because councils will not help.

We had a 6 month period on a section 21 for landlord sale thanks to covid, and despite starting to search immediately and not being fussy we were lucky to secure a new let 4 months later. It's absolutely brutal as a renter at the moment even with decent salaries from stable companies.

You'll only get top ££ for a vacant possession.

Thanks, can totally understand how stressful, time consuming and costly this situation would be. We are very lucky that there is the other property available for rent and that the tenants would be happy to move there. Rentals don't come up very often in this area also so I'm taking this as another sign that we need to sell and sell now. If we wait, the tenants pass up the other house and one may not become available for a long time. Thanks, I think you have helped me come to my decision. Think I'm going to give the lady who wants to buy to rent out first refusal at 200k. so long as its a quick easy process and that she agrees to rent to current tenants. She is viewing Monday. Will push for an answer on Monday. If its a no, then crack on with estate agents and let the tenants know that they should complete on the rental of the other property and we will arrange the sale around them and they move date. Thanks everyone
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