With inflation at a 40 year high, interest rates are at a 13 year high, a lot of landlords are planning to sell some properties in their portfolios to use the equity tied into them to pay off the mortgages on other properties to avoid further rises but selling buy-to-let property can be a very slow process.

So what options do landlords have to sell rental properties?

The High Street Options

Sell Buy–to–let Properties with Vacant Possession

The main advantage of this option is an uncompromised selling price but be prepared to spend a lot of time and money (especially if legal action and bailiffs are required) to provide vacant possession which will affect the ‘walk away’ funds available after agency fees and legal costs are deducted.

Sell Buy–to–let Properties with Tenants in Situ

The advantage of this option (if tenants cooperate) is less VOID time than selling with vacant possession while the disadvantages are the added complications and higher risks of the sale collapsing.

Most investors will not pay full market value for a property so sellers should expect to accept an offer in the region of 85 – 95% of the market value and legal costs will be higher than routine sales.

Estate agents do not collect information about tenants so sellers will need to provide buyers with the information themselves or allocate the role to someone else.

Alternative Options – Landlord Sales Agency

Landlord Sales Agency sell buy–to–let properties with vacant possession or tenants in situ.

  • They manage the process with less disruption to tenants
  • They manage the process with minimal seller involvement
  • They sell properties as individual lots or as portfolios
  • They have buyers who will make an offer without even viewing properties due to the legal safeguards Landlord Sales Agency put in place to ensure the data they collect is reliable
  • They secure all offers as soon as they are accepted to ensure buyers do not try to renegotiate later in the process and fewer sales collapse
  • They sell individual properties and portfolios ranging from £100,000 – £10M
  • They sell and complete fast (typically 12 – 16 weeks or slightly longer depending on the circumstances)

Sellers typically receive between 80 – 90% of the property value, depending on the number of tenancies and the complexity of the sale. They pay up to £720 (inc VAT) towards legal costs so in most cases, the amount sellers receive is their walk away figure.

David Coughlin founder and CEO of Landlord Sales Agency said,

“We’re all about delivering speed, efficiency, and exceptional customer service. With the rise in popularity of HMOs in the last 10 years, landlords are now finding it more and more difficult to sell ex rental properties with vacant possession without having to wait years for multiple tenancies to end. The simple and obvious answer is to sell to other investors who see established and trusted tenants as a bonus, not a problem.

We recently paid £2.3m into a client’s bank just 16 weeks after listing her tenanted, 23 property portfolio. We sold it and completed in less than 16 weeks.”

Contact us now to find out how we can help you sell your portfolio fast.

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6 COMMENTS

  1. This is a great article on “what is the best way to sell buy to let property”. It’s very informative and enlightening. With selling property comes income and then with income comes taxation. Taxes in the UK are very difficult for a domicile person in the UK to understand, imagine how challenging it must be for a non-dom… For this reason our company Immigration Tax Partners aim to help further our clients understanding of the UK tax system. If it’s alright with the author of this article, I’d like to leave behind our websites address for those who are interested in learning more about the UK tax system. https://immigrationtaxpartners.com/

  2. Hello Mr Coughlin

    I am a Landlord in Scotland and was dealing with your company for sale of my 17 rental property and was well impressed by sams effort up until he stopped replying due to a lot of work on his desk ( I know the feeling)
    emails and phone call went unanswered but eventually he got back to me with an update YOU KNOW LONGER OFFER A SERVICE IN SCOTLAND DUE TO LOSING YOUR CONTACT so I was deflated as I thought this was to good to be true .However he did give me a contact in Scotland to approach .As a property 118 member it would have been nice to have got an offer . So not such a good services for us scottish Landlords now by your company
    All the best
    John Gordon

  3. I have sold a property with tenants in situ and it worked out well for both buyer and seller. One cost ignored in the article when selling with vacant possession, is the lost rental income for the period whilst the property is empty and being marketed and waiting for the sale to complete. This can be a substantial cost particularly when set alongside the the cost of the selling fees. Half-decent solicitors have no issues with buying/selling with tenants in-situ and there’s really not that much additional information or process involved – transfer of deposit to new owner, tenancy agreement, statement of current rent position, pro-rating of final month’s rent received. The property I sold was rented to students and at the time I sold it I had agreed a future tenancy with a new set of tenants for the following academic year. So not only was it sold with about 6 months of the existing term left but also with a future 12 month tenancy (all signed and agreed) with a new set of tenants. The bonus from the buyer’s perspective was that as well an income stream from day1 they weren’t risking missing the boat for the next academic year (the student market has some very unusual characteristics, like the annual house-hunting season), did not need to be concerned about the LA’s Article 4 direction preventing conversion to a smaller HMO, got all the furniture, beds, etc thrown in with the deal, etc,etc.

  4. Couple of additional points.
    1. The tenants don’t need to co-operate (erroneous point included in article). Most tenancy agreements explicitly allow re-assignment of the landlord’s obligations in the event of a change in ownership and, I’m pretty certain that, provided the tenants are given the appropriate notice informing them that that the landlord’s obligations have been transferred, they don’t have a choice in the matter.
    2. “Most investors will not pay full market value for a property so sellers should expect to accept an offer in the region of 85 – 95% of the market value and legal costs will be higher than routine sales.” Who says? Certainly not my experience.

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