Benefits of Selling Your Tenanted Property for Equity Release in UK
Are you interested in the advantages of making money by selling the property you have rented to tenants, equity release leads? There’s plenty of uncertainness in the UK currently, which is why many landlords are experiencing a shift in their situation (our recent survey showed that around 40% of landlords have changed how they plan to run their business), which suggests they might be considering selling as a possibility.
If this sounds like you are in that situation, you should know that you can choose between selling vacant possession (the traditional method) or selling while tenants remain living in your home, equity release leads.
If you are planning to sell your property using the traditional method, the law currently dictates that you must give your tenant a minimum six-month notice. Additionally, you might require more time to ensure the property is ready for sale.
But, you might not be able to wait this long. What is an easier and faster option? Absolutely.
Few people are aware of this choice, and selling your property with tenants within the present will allow you to let equity go without tenants having to leave their homes.
We are an estate agent specializing in the sales of tenanted properties (in fact, we are the sole estate agent for landlords specializing in this area of Scotland). We’ve dissected the advantages and potential negatives of selling a rental property.
What are the advantages of selling your property that is rented?
If you’re considering weighing the options available and get an idea of if selling a home with tenants who are already there is the best option to make, we’ll take a look at the most significant advantages first:
Sell with confidence
Removing your tenants and putting your property on the market for sale on the open market can be a hazardous, long-lasting process that can cause you to lose cash, particularly in the case of vacant property for a long time and you don’t know when you’ll be able to get a deal.
Real Estate Tip: Invest in New Metro City
Selling your home with tenants in place eliminates the risks associated with selling traditional ways and allows you to take your property to market confidently. How? Find out more here.
Keep your rental income
The most significant advantage of selling a tenanted property is that, while going through the selling process, you’ll keep receiving rent income until the sale is completed.
This is an appealing choice for sellers who might otherwise be reluctant to put their purchase-to-let property or investment property to let the release of equity quicker, as they require it.
There are no unpaid utility bills to fret about
In conjunction with point 2 is the fact that you don’t need to pay for any of the usual costs of utilities you’d be paying to pay for a vacant property while trying to sell it.
Your tenants still live there – paying the rent and keeping the property up to usual – so nothing changes, apart from the change in tenancy when the sale is complete.
The property you are selling is sold as-is
In other words, by selling the property you have rented to tenants, it is not necessary to consider refurbishing the property, redecorating it, or fixing damages – most of the time, you can sell it as-is.
The buyer will also be secure knowing they’re purchasing a home that is already compliant; therefore, there’s no first investment to ensure that the property is secured for tenants to move into. This is a significant benefit for them!
A real estate agent specializing in selling tenanted properties on the market could assist in negotiating the best price for your home – typically set price and (often) higher than the house report value.
In some cases, You could get more money than you could have gotten selling your home empty, particularly when you consider other expenses you’ll reduce (as previously mentioned).
You can rest assured about your tenant’s security
Last but not least, don’t forget about the tenants! It could be your property; however, it’s still their home, and in most cases, tenants won’t be forced to leave. We occasionally encounter sales when the new landlord is trying to shake things up, but that’s not usually the situation.
There is nothing to alter for them. The tenancy agreement shifts hands between you and your new landlord, equity release leads.
Tip: A good specialist estate agent will help you contact your tenants to ensure they’re aware of the events happening and willing to work with you in scheduling viewings and other things.
The drawbacks that could be associated with selling a property that is rented to tenants
We’d be remiss not to talk about the only possibility of a drawback to the sale of a rental property. We always tell our clients that it’s everything to do with perception.
The downside is that you might receive less than you would if selling your home empty. But the truth is that it’s not always the scenario.
Why? The reason is that selling a vacant property traditionally gives you access to a more significant market and more emotional purchase that comes directly from owners.
In other words, you will not see a landlord looking at your property and being eye-swollen over having morning breakfast in the breakfast buffet or reading a good book on the lovely bench near the window.
When you sell your property to tenants already in the property, you can reduce the risk while still receiving a fair price.
It’s important to note that not all locations and properties are the same. Specific properties with lower value may struggle to sell when empty.
Property pros can offer advice
You’re considering selling the property you’ve rented But aren’t sure it’s the right choice for you? The most effective advice we can offer is to consult an estate agent familiar with selling tenanted properties. They’ll discuss your circumstances and help you understand your choices.
We often hear landlords who are in a position to sell, yet they have an incredible connection with the tenants. They pay their lease on time, take care of the property correctly, and don’t cause trouble for their neighbors.
In particular, at this time, as the economy is shaky for everyone. Landlords don’t wish to cause a stir and make their tenants move out during this challenging time, particularly in the case of essential employees. Selling with tenants who aren’t in the house and have no void periods is the ideal solution.
The days before COVID-19 began, a landlord came to us with an offer to sell his property. He’d talked with three estate agencies and also us. We wrote back to him and said we could negotiate an amount aligned with what others had told us equity release leads.
He was delighted to sell his rental property but was able to proceed after the lockdown had begun. This tenant worked as a keyworker and was thus still employed, so paying rent wasn’t an issue. In addition, we were able to offer the property on the assumption. That the buyer would earn rent income from Day 1 of the property’s ownership.
We hope that you find this article informative. We’ve hopefully managed to provide some insight into the advantages of selling your property that is rented. It’s an excellent method of making equity available quickly without the effort and time involved in selling a vacant property.
This is a difficult time, so you might be weighing. All alternatives before deciding if it’s worth the effort to sell. A reputable estate agent will happily meet you and offer honest, free advice.
Contact us today if you’re seeking guidance on releasing capital. By selling the property you’ve rented or even your portfolio of properties. Reach out. Read more firstrung