The last few years have seen a huge expansion in the Buy-to-Let market and with this expansion has developed a niche market for landlords wishing to sell their investment properties.
As a landlord, you have the option of either selling your investment with vacant possession or you could sell the property as an investment to another landlord. At present, in our experience, the investment market is as active, if not more so, than the owner occupier market.
Selling can be particularly frustrating when a buyer backs out, although we have found that sales to investment buyers have a lower ‘fall through’ rate than owner occupied sales, possibly because there is only a short ‘chain’ of two people and also, perhaps, less emotion involved. If the property sale does fall through, and it is let, the continued income will certainly soften the blow whilst a new buyer is sought.
If you have decided to sell your investment property, the first stage is for us on your behalf to arrange for the property to be valued. We advise the tenant that you are considering selling the property and answer any queries or questions that may arise. We are able to reassure them that, in most cases, this will have little or no impact on them. Should they be required to vacate, they will be given reasonable notice. We will discuss with them viewing arrangements for potential purchasers.
If a potential landlord is interested in buying the property, we are able to discuss with them the property history. We are also able to give them advice based on our experience of lettings over the last 12 years or so. Many new landlords find reassurance in purchasing an investment property with a tenant in occupation. Often they are able to meet the tenant and establish if the tenant would like to remain in the property, should they purchase. The new landlord then has a major benefit if they buy a property with an existing tenant; there are no void periods or initial set-up fees to pay and they will receive a rental income from the day of completion.
Belvoir Sales Peterborough and Cambridge have been operating since July 2013 and we have sold many properties with tenants in situ and we have not experienced any complications during the sales process. I think the idea of selling with tenant in situ scares many agents as they do not have empathy with, or understand how to deal with tenants. Belvoir Lettings has been operating since 1991 and has a managed stock of over 1000 properties with all qualified staff understanding the whole process from advising on investment properties to the full management of these properties through to the end of the tenancies.
Free Buy to Let Advice and Sale Advice
The team at Belvoir Cambridge would be pleased to receive calls or emails from landlords considering selling a property with a tenant in situ. They would also be pleased to receive calls from prospective investors.
Belvoir Cambridge is an accredited and regulated letting agency. Members of ARLA, Safe agent, Propertymark and the Property Ombudsman. One of the requirements for membership of ARLA and Safe Agent is to have Client Money Protection and all client monies independently audited and accounted for annually.
This article was prepared and written by Lottie Hostead sales valuer for Belvoir Peterborough and Cambridge.
For more information or to ask Lottie a question call 01733 511099 or send an email to lottie.hostead@belvoirlettings.com
