Sell rental property now or in a year

Hannaho

I have a rental property that I intended to sell next year, when my daughter goes to UK for college - I intended to move back to the UK with her. All the forthcoming tenancy legislation is scaring me, and I was going to try and sell the house this year, and just try and by in the UK maybe in September next - a year earlier than planned. Does anyone think this is a mad/sensible idea. There is no mortgage on the rental property. It might be a struggle to recoup all we have spent on the property over the years. The retnal income, despite the tax, is used for extras for the family. The tenants are good so far. The house is managed by an agent. Worried though that in time, I might not be able to sell the property at all, or in another year if I don't give notice and sell now. Advice/opinions would be very welcome.

MicktheMan

Give the official notice now that you are selling next year. Then you are covered if / when new laws on selling are enacted because afaik new laws cannot be applied retrospectively.

BBFAN

The best you can expect in the next year or so is 5% appreciation so weigh that up. If I was in the position where I wasn't in negative equity I'd sell now before evictions are banned altogether.

Hannaho

Thanks to both of you for your replies. Should I give standard notice of 56 days - 2 years of tenancy, or state in the termiation notice that I am giving them 8/10 months notice, bringing the tenancy up to next autumn, and then sell in early 2019. Is it possible to do this? What happens if I can't get near the asking price for the house, and can't enter into an enforceable contract within 3 monts as per notice of termination - wil I be penalised for this?

Graham

BBFAN wrote: »

The best you can expect in the next year or so is 5% appreciation so weigh that up. If I was in the position where I wasn't in negative equity I'd sell now before evictions are banned altogether.

It's probably wise not to state either scenario as fact.

The_Conductor

Honestly- I'd give a little over the statutory minimum notice- say 90 days- to be as accommodating as possible to the tenants without hamstringing yourself. I'd proceed to sell immediately- I don't see any particular merit in postponing selling- unless you have other motives for holding onto the property (aka for children or college reasons etc etc). In the current regulatory regimen- there is no reason to remain in the sector longer than is absolutely necessary- however, at the same time, if the tenants have been decent, I would go out of my way to try and show them as much leeway as possible to reciprocate (and if they manage to find somewhere else in less time than expected- I'd do my utmost to help them move etc).

In short- no point in hanging around in the sector- but try to exit as gracefully as possible.

yosser hughes

I'd sell asap and advise anyone in the same position as you to do the same.

DonalK1981

Or you could offer to sell to the tenants first, see if they're interested in buying it. Speak to them about your situation out of courtesy as there are a lot of landlords saying they are selling it just to get people out to raise the rent for the next set of tenants. If the tenants have the means to meet your valuation and would be interested in doing so it would be a win for you both. They get a home that they know and is their own, and you get to sell without the involvement of 3rd parties.

LotharIngum

Whatever you do put it on the market and let the current tenants bid against anyone else who wants it, or you wont get market value, which may be significantly more than you think it is.

Aside, Almost every property investor I know of now plans to sell up or otherwise get out of the property rental game as soon as their current tenants have left or their current part 4 is up. A lot aren't even waiting and are giving notice that they are selling already.

Rental is just dead for landlords unless you are a Reit.

Eric Cartman

Try sell now, brexit is coming , youll get peak profit now and have all the money to sit and watch the uk depreciate

sunnyday1234

yosser hughes wrote: »

I'd sell asap and advise anyone in the same position as you to do the same.

why so ?