Selling property in new year, advice needed

hawkelady

Hi,
I'm thinking about selling a property in the new year. I currently have long term tenants in it so I will be issued them notice soon.
I'm considering waiting till the notice is up or when the tenants move out ( which ever comes first) to put it on the market as I can paint the place and have it clean and tidy ..

I will be going to my mortgage lender but I'm wondering if anyone here knows if they would give me an interest only payment on the property until it's sold ?? I'm hoping the will as it'll be so hard to pay the mortgage on it with no rent coming in.
The place isn't in neg equity or anything and I'll hopefully be paying off my mortgage on my ppr when it's sold too.
Question is , do you think my bank will be accommodating to my request

Thanks

The_Conductor

Hi Hawkelady-

The only way of answering your question- is with another question- where (roughly) is the property?
You're not going to be able to sell the property with a sitting tenant. First off- any mortgage provider will demand a prospective purchaser has vacant possession- and secondly- any prospective purchasers are well aware that if a tenant decides to play the system- it could take you up to a year or even more- before they vacate the property- all the while they may or may not be paying rent..........

You need vacant possession of the property.
You need to do some remedial work- it could be as little as a fresh coat of paint and tossing any furniture that is in there- to make any prospective purchaser see how they can make their mark on the property.
You need an indication of what the current selling times for property in the area are.
You need to set a realistic price- there is no point in looking for top dollar and having the property sit on the market- prices are softening (particularly for second hand property).
You need to know who your prospective purchasers are- and decide how to aim your property so it best appeals to them......

As to whether a lender will go interest only while you're selling the property- in general, no, they won't. They might up your overdraft to meet repayments that fall due between vacation of the property by the tenant and sale of the property by you- its probably the second most expensive type of debt you can have- but its the simplest way of managing it.

At the knux of everything- is where is the property- and how quickly are properties selling in the area. Thereafter- its a game of making your property the one that prospective sellers want- over and above any other properties in the area.

Don't even try to put the property on the market with sitting tenants- its unsaleable with sitting tenants- and the existence of a tenancy within the last 24 months at the level at which the tenancy was set, must be provided to prospective purchasers, alongside a BER certificate............

You need to get your ducks in a row- the first duck is vacant possession of the property...........

d.pop

Was in similar situation last summer.
Get the tenants out first, hopefully they will leave when asked and leave place in good condition. We gave our tenants the required notice, was about 3 months but they left after 4 weeks, different rules for tenant v landlord...
One bit of advice given us by the estate agent 'fresh paint sells houses', def worked in our case, got the place freshened up inside and power washed the outside.
Also dress the property as best you can with basic furniture and coverings.
Took us about 8 weeks from first advertised to sale agreed,
Good luck.

hawkelady

Thanks for info. Property is in Dublin 18..
The order I was thinking was give notice to tenants , then get an ea on board then talk with my bank. My solicitor is already on board with my plans.. tenants will be given 112 days to vacate according to rtb.

Cheers. I'm really hoping my bank plays ball.