At present, the market is looking bleak for buy-to-let landlords. After all, the Conservative government has taken drastic steps to regulate this sector and diminish its appeal to investors, in a bid to create more houses for sale and create a balanced marketplace overall. To this end, they have increased the stamp duty applied to buy-to-let homes while also eradicating many of tax benefits associated with the market.
This has sent panic waves through the UK’s army of buy-to-let home-owners, many of whom are rushing to the market in a bid to sell their property recoup as much of their investment as possible. This is easier said than done, however, as sitting tenants have rights that may make it difficult for you to recover the property quickly.
How to resolve the issue of sitting tenants
The Open Property Group provides a potential resolution, however, as this firm takes the usual approach of purchasing your buy to let property regardless of whether or not it is vacant. This means that they will complete a transaction on properties that have sitting tenants, overcoming an array of agreements from assured shorthold tenancies to loosely designed verbal contracts.
This provides instant relief from a time-consuming and potentially costly legal dispute, while it also enables you to offload a high value asset that may depreciate under the government’s new initiatives. If you do choose to sell your property in such a way, you have the added advantage of not being required to notify your tenants as this is the responsibility of the new owners.
While this type of purchase allows you to optimise the resale value of your asset, it does not infringe upon the core rights of your sitting tenants. The company that purchases your property is still required to give tenants the requisite notice prior to leaving, while they must also take care adhere to existing regulations and laws in this matter. This is an important consideration, as buy-to-let landlords are often conflicted as they wish to offload their property quickly without turning tenants out onto the street.
Additional considerations for Landlords
Another benefit of this type of sale is that it can be completed quickly, while firms such as the Open Property Group will also pay directly in cash and instantly release the equity that you have in your property. So regardless of your reason for selling (whether this is due to government initiatives or the time-consuming nature of property management), you can move quickly and recoup a larger amount of money.
On a final note, you may need to manage your expectations when selling your buy-to-let home. While there are huge benefits in terms of a cash purchase and the willingness of buyers to take on sitting tenants, you must be aware that these firms absorb the associated legal costs of resolving this issue. This is often reflected in a reduced asking price, which is always competitive but lower than the existing market value of your home.