PDA

View Full Version : Is it a good idea to sell house to T ?



maplestead
11-02-2010, 16:43 PM
Has anyone any experience of selling their house to the T? What are the disadvantages / advantages and/or pitfalls? T enquired about purchasing and has rented for past 5 years. Freehold owned outright.

jeffrey
11-02-2010, 16:48 PM
Treat it as if it were an ordinary sale, for most purposes.
ADVANTAGES: no HIP required (and no Estate Agents either!) Maybe no need for Contract of Sale either- go straight to Transfer stage.
DISADVANTAGES: none, really.

Lilo
11-02-2010, 16:50 PM
I'd get a couple of valuations before you agree a price. Otherwise, if the tenant has been a good one, and you're happy to sell on a rising market (6%) then go for it.

Poppy
11-02-2010, 16:50 PM
Yes, if they have the funds and can complete the purchase without undue delay.

Is this the same property where the tenant wants to replace the kitchen?

jeffrey
11-02-2010, 16:52 PM
Is T:
a. going to finance purchase by large % mortgage advance; and
b. buying in sole name or jointly with a non-T?

maplestead
11-02-2010, 16:57 PM
Not sure how they intend to finance. It is a couple who entered agreement as single people (divorced) and they have since married. Have not had a revised agreement in their married names.

Lilo
11-02-2010, 17:04 PM
Sorry, I missed out a crucial number up there. It's reported that the market rose by 3.6% from January 09 to January 2010. I'd be less worried how they're going to finance it, than how worried I would be watching the prices rise after I'd sold it. If you aren't worried about possibly losing money in the future, think how much you'll save with no HIPS or fees. Just legal ones of course.

jeffrey
11-02-2010, 17:14 PM
no HIPS or fees. Just legal ones of course.
Or perhaps, for a fair price, T(P) might pay L(V)'s legal fees- as in leasehold reform cases.

theartfullodger
11-02-2010, 17:49 PM
Does T think they might get some discount as in Council "Right to Buy"?? Clearly T ain't entitled to any discount but he just might think he is...

Cheers!

Lodger

Poppy35
11-02-2010, 20:54 PM
also if a LA found you the tenant it might be worth checking the terms you signed with the La. It may have a clause stating that if the tenant they introduced purchases the house they are entitled to a fee.

Perplexed
11-02-2010, 22:27 PM
also if a LA found you the tenant it might be worth checking the terms you signed with the La. It may have a clause stating that if the tenant they introduced purchases the house they are entitled to a fee.

If I remember correctly Foxtons could not make a similar clause stick in court. :D

Just to be on the safe side though I make my letting agents sign an agreement whereby they accept that they are only entitled to a fee if a tenant they introduced buys the property within X months of the start of the tenancy, and none after that.

maplestead
12-02-2010, 08:13 AM
Yes, if they have the funds and can complete the purchase without undue delay.

Is this the same property where the tenant wants to replace the kitchen?
Yes it is. They are happy in the property and don't want to leave, that's why they are suggesting paying for new kitchen or buying property.

dominic
12-02-2010, 15:24 PM
If I remember correctly Foxtons could not make a similar clause stick in court. :D

Just to be on the safe side though I make my letting agents sign an agreement whereby they accept that they are only entitled to a fee if a tenant they introduced buys the property within X months of the start of the tenancy, and none after that.

Only if the AA states that they are entitled to a fee!

Do not sign an agreement with the LA as advised above unless this is the case, otherwise you are agreeing to pay them a fee when none may be due!

Perplexed
13-02-2010, 09:45 AM
Only if the AA states that they are entitled to a fee!

If I remember correctly Foxton's AA did state that, but that was ruled to be an unfair clause.

Ditto for their renewal fees.