After years of having the responsibility of being a landlord, there will usually come the time that you wish to sell your property and cash in any equity from your investments.
At Direct House Buyer we actively search for properties that already have tenants. So If you have tenants already living in your property, that may not be a problem.
Are you a Landlord who Needs to Sell a Tenanted Property?
If you have tenants living in your property then you may be unsure whether or not to evict them first or to sell your house with the tenants in place. It’s certainly worth exploring the options and you’l be pleased to know that we are house buyers who have the ability to buy a tenanted house. Certain factors need to be considered such as the property’s rental price, it must be at least that of the average rental price for your local market, basically the going rate. If you want to sell a tenanted property then it will be worth having a conversation with one of our advisers to discuss your specific situation, please take a look at our homepage for further contact instructions.
Do you Want to Sell your Entire Portfolio?
We can purchase all of your rental properties at once. We don’t use traditional real estate methods for buying houses, rather we have a network of investors and our own cash fund which exists to solely invest in real estate. We privately contact our investors so that we can find you the best offer on your complete portfolio within 24 hours or additionally consider your property for our own requirements.
Do you Want to Receive Full Market Value?
We understand that part of your investment strategy is to retrieve as much equity from your property as possible and you certainly wouldn’t want to take a loss. For other options of achieving a fast sale there can be an inherent risk in not knowing how much you are going to achieve. for example, when you sell your house at an auction you might lose 25-40% of your property value and such an option may not be viable. At Direct House Buyer we have a variety of options and offers for you so that you can choose the offer that best fits your requirements and you don’t have to sell your house at a discounted price. If you want to sell your investment properties fast then call us and speak to one of our experienced advisers.
A Landlord who Wishes to Sell Investment Property? What Should You Know?
If you are a tired landlord who is ready to give up the keys and sell a single house or a portfolio or property then we’d love to hear from you. Don’t worry if you have tenants already living there, we are one of the few companies that can buy investment property’s with tenants already in place.
New Proposed Changes for Landlords and Tenants
The End of Fixed Term Contracts
The End of No-Fault Evictions
The New Rules Regarding Evicting a Tenant with Rent arrears
A Limit to Rent Increases
Landlords Need to Join an Ombudsman and Join an Online Portal
You Can’t Discriminate Against Pets
Section 24 Tax Changes
Previously Landlords would pay tax on the profit that they receive from their rental properties i.e. The total rent minus your costs which included the cost of your mortgage. In simple terms If you were receiving £2000 rent and your mortgage is £1000, you would pay tax on the £1000 profit. Now with Section 24 legislation which is in full effect after 1st April 2023, as a Landlord you pay tax on the entire rent not just the profit. You can no longer claim back your mortgage payments as a tax deductible expense.
Energy Performance Certificates
New legislation coming into effect means that houses need to be up to a set standard of energy efficiency before they can be tenanted. The Government has said that all properties that are new tenancies from April 2025 have to have an Energy Performance Certificate (EPC) of a C or above, and for existing tenancies they need to have a EPC rating of C by 2028, this was revised in March 2023. This means that for many landlords if their tenants move out of the property between now and April 2025 they will be forced to quickly improve the property or to sell the house before April 2025. These needed efficiency improvements could mean spending many thousands of pounds on double glazing, insulation, new doors etc. According to Property Industry Eye more than two fifths of landlords are unaware of this new regulation, and there may be an influx of landlords who will need to sell their house fast if they are caught unaware in 2025.
How to Tell your Tenants that your Selling
Having to tell tenants that they will have to move out of their home and putting them in a position that they haven’t chosen can often be difficult news to give. It’s important to have a clear plan in place first and not put your tenants in an uncertain situation, or provide false promises or hope that could possibly leave your tenants in a worse off position than from being clear at the start.
Alternative Options You May Consider
Allow your Tenants to Stay on Until the Property is Sold
This can be done but it’s not necessarily advised, legally it may not be in your best interest. Many landlords may trust their tenants and be able to establish what they think is a fair agreement e.g.e the tenants will help with viewings and be able to move out on a as and when basis but in practice this may not be so simple and what was once a friendly relationship could change. As a landlord who has found a suitable buyer it may cause the sale to fall through if the existing tenants cause a delay with moving out. After the fixed tenancy term the contract would naturally roll over to a rolling contract and if your tenants don’t oblige to your friendly arrangement then you will face a further two month delay when serving a Section 21 eviction notice, of course this could be a further longer process if your tenants refuse to move out so to avoid such complications many landlords prefer to start the eviction process before the property goes on the market. Unfortunately this will cause some void period months but is the most convenient route.
Sell Your House Fast with Tenants in Place
A quick solution that could help speed up the process and keep your current tenants happy would be to sell your house with the tenants in place. If you have an existing contract in place with reasonable market rate terms then it may be feasible and also desirable for us to agree to buy your home and transfer your existing obligation that you currently have with your tenants. This route is not only convenient but will allow you to sell your house faster than having to wait 2 months when serving an eviction notice and also a possible solution for any eviction problems that you may currently have.