While buy-to-let is booming for some, other landlords may be feeling a sense of unease, frustration or even despair. Some property investors can’t make the figures work in terms of profit margins considering increased taxes, while others feel a landlord’s obligations and compliance issues are burdens too heavy to bear.
For some, cash tied up in property will need releasing – for personal or re-investment purposes – and it’s quite possible that landlords may need to regain possession of their property to live in themselves. As a result, the only option is to sell and exit the sector – partially or in full.
Selling a property that you rent out is also known as asset disposal but it’s not as simple as turfing the tenants out and going on the market. There is a legal protocol to follow if you want to regain possession of your buy-to-let, and a notice period must be given so the tenant can find alternative accommodation. These protocols have changed twice in 2020, so do read the Government’s official legislation here.
Landlords who want a complete exit from the buy-to-let market can take the decision to sell everything. It’s worth noting that part or all of any profit made from any rise in a rental property’s value may be subject to Capital Gains Tax, if held by an individual, or corporation tax if held by a limited company.
This is a good option for landlords who are uncomfortable with mortgage debt but have equity in some of their buy-to-let properties. Sometimes the figures stack up so the profit from one or multiple sales is enough to pay off the mortgage in full on at least one other buy-to-let property or a principle residence. This reconciliation can leave a landlord or homeowner mortgage free.
Open Property gives landlords the option to offload their rental property with tenants still in situ. With us, there’s no need to give notice or issue an eviction order, which saves an immense amount of hassle and quickens the entire disposal process. We’ve prepared a blog on the value of a property with sitting tenants, so, take five minutes to have a read.
While popular, this strategy can prove the most expensive and stressful, as there will be fees to pay, and no guarantee when the property will sell and how much for. Read our blog on what costs to expect when selling a property via an estate agent. Tenants can typically become difficult when allowing access or being available to keep the property clean and tidy when unexpected viewings happen. There is no obligation for your tenant to cooperate.
Property auctions offer an alternative to selling via an estate agent but there are still fees to pay and there’s always the possibility that your home will fail to reach the reserve on the day or the deal may fall through after the auction.
Need to sell property fast and with a guarantee? You can sell to a cash buyer, such as Open Property Group. We make a guaranteed offer, no haggling, and can complete with money in your bank within seven days. What’s more, we don’t charge fees, we’ll pay your legal costs and there’s not always a need for viewings – the perfect option if access to your rental is an issue.
If selling your buy-to-let has become a pressing matter, we can make you an immediate cash offer today – just follow these steps. Completion can be arranged within a week, if required, or we can set a date in the future if you intend on working to your tenants’ timescale.
We offer the perfect solution for landlords whose tenants have trashed the property, as Open Property will buy any flat or house, no matter its condition. Read up on how we buy a problem property, then contact us to start your sale.
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