Why Should I sell my property as tenanted rather than with Vacant Possession?
Regaining possession of a protected tenancy under the Rent Act may not be achievable for many years, and with rental incomes well below current market levels, selling a tenanted property can not only release capital it is a strait forward process with exceptionally low costs. If your property does become vacant then you may well be able to ask a higher price but purchasers may well be looking to chip the price and the additional costs of marketing, professional fees and documents soon adds up. Investors and landlords make up a large segment of the market and many prefer tenanted properties.
What is my property worth - Ensure you get a fair deal
Typically protected tenancies are worth 65—70% of the open market value however this can alter dependant upon location and condition of the property together with the tenant profile.
The Process - 6 easy steps
1. Wish to sell
2. External Inspection
3. Offer made & Sale agreed
4. Memorandum of sale
Ensure you use a creditable agent and with creditable clients
Knowing who you are selling too and who is their agent is essential as professional firms will be accredited by industry recognised organisations for you piece of mind
Ensure that your tenant is well cared for and protected
Ensure that the your purchaser looks after your tenant/s and if an agent is used they are a professional
Advantages of selling
• Realise capital that you may never realise
• Cash buyers who can complete quickly
• Free of maintenance requirements, changing legislation and landlord responsibilities
• No more Income Tax
• No, internal inspections, marketing costs or surveys required
• No Agency fees + Payment of legal fees
Disadvantages of selling
• Loss of rental income
• Capital Gains Tax
• Sold below market value
For further information please contact us.