Latest News

HM Land Registry portal enhancements – a benefit to the property industry

11 August 2020

Following the announcement on 27 July that transfers of ownership of property, leases, mortgages, and other property dealings can be signed electronically, HM Land Registry has also confirmed that customers in Wales and England can now manage all portal applications and correspondence in one central place. Read More...

Government urged to speed up cladding remediation process

10 August 2020

The second report from the Industry Safety Steering Group on the progress of culture change in the construction sector was issued on 5 August, which highlighted the need for further change for the industry now, ahead of the legislation. Read More...

Consultation to reform planning system launched

06 August 2020

Housing Secretary, Robert Jenrick announced today, 6 August, the Government is ‘Planning for the Future’ and aims to overhaul outdated systems and reform the way the country builds. Read More...

Property market to continue through Aberdeen lockdown

06 August 2020

Following the announcement on 5 August by First Minister, Nicola Sturgeon, that Aberdeen is in lockdown for a period of at least seven days, the Scottish Government has published regulations clarifying the property market can still function. Read More...

COVID-19 not dampened enthusiasm to get OnTheMarket

06 August 2020

A property market online portal has seen the number of agent branches listing exclusively rise by 1,619, which is a year-on-year rise of 42 per cent. Read More...

Selling Tenanted Property

Friday 21 February 2020

A significant period of political uncertainty, along with changes in landlord’s taxation and legislation, has contributed to landlords selling and exiting the Private Rented Sector. However, that reduction can’t all be attributed to political and taxation changes, many landlords decide to sell to release equity.

When an agent is met with a landlord who wishes to sell, evicting the current tenants may not always be the best course of action - what should a good agent do to advise buyers and sellers of tenanted property? 

Option 1: Evict the tenants and sell

This option involves terminating the tenancy by serving notice on the tenants, then getting access to the property and making any repairs or improvements to prepare the property for selling. The home report is then carried out ahead of putting the property on the market. By the time offers start to come in, a seller might be waiting up to six months without an income from that property.

Option 2: Selling the property with sitting tenants

This option allows the landlord to avoid hassle and expenditure and maintains the rental income right until the sale is completed.

Benefits of buying a tenanted property

Buying a tenanted property can be the ideal solution for anyone looking to invest. Benefits include: 

  • Instant rental income - receive rent on day one of ownership
  • A fully furnished, fully compliant and ready-to-go property
  • A smooth, hassle-free process
  • Know the rental price before they purchase
  • Little or no capital expenditure

Benefits of selling a tenanted property

By selling a property with sitting tenants can eliminate the risks associated with selling a property, sellers can take advantage of benefits such as:

  • Maintaining the rental income right up until completion
  • A simpler, speedier process that’s hassle-free
  • No void utility costs
  • Sell the property as is
  • No need to evict the tenants from their home

What happens to the tenancy agreement

If the tenants stay on, the tenancy agreement simply changes hands to the new landlord, who is, in effect, ‘standing in the shoes of the previous landlord’ - and is bound by the tenancy in the same way that they were.

The tenants still retain their legal rights and cannot be forced out of their homes by the new landlord, and in most cases, they wouldn’t want to.

Property Professional magazine

In the January/February issue of Property Professional, Ross MacDonald, co-founder of Portolio and NAEA Propertymark member who specialises in selling tenanted property and portfolios across Scotland, takes a deeper look at why it’s important that NAEA Propertymark agents advise their clients of all the selling options.

NAEA Propertymark members receive a copy of Property Professional, which is published six times a year. Non-members can subscribe or join to receive this and many other benefits, as well as having the credibility of being part of a respected association, showing consumers your professionalism.

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