Changes to tax, regulation, energy efficiency requirements and mortgage rates have led many landlords to review whether letting still works for them. If you have decided to sell, the question becomes how to do it in the way that leaves you best off.
Tenanted or vacant
Selling with vacant possession usually achieves a higher price, because the property can be bought by people who will live in it. But ending tenancies takes time, has to be done correctly and means a period without rent.
Selling with tenants in place is usually quicker and keeps the rent coming in until completion, but your buyers will mostly be other landlords and investors, which normally means a lower price. Our guide to selling a tenanted property covers this in more detail.
Selling several properties
If you own more than one rental, think about:
- Order. Selling one at a time lets you spread the work and, for some landlords, the tax. Selling together can be simpler.
- One buyer or several. Some investors will buy a group of properties in one transaction, which saves running several sales at once. The price per property may be lower than selling each separately, so it is worth comparing.
- Mixed portfolios. It often makes sense to sell some properties tenanted to investors and others vacant on the open market.
Points to check before you sell
- Capital gains tax. When you sell a UK residential property that is not your home and owe capital gains tax, you usually need to report and pay it within 60 days of completion. Talk to an accountant early.
- Mortgages. Check for early repayment charges and whether any loans are linked across properties.
- Properties owned by a company. Selling the properties and selling the company are very different, with different tax results. Take advice before choosing.
How we help
We look at each property and your figures, then recommend the mix of routes that suits your plans. That might be private investors, auction, a partner estate agent or a combination. We then manage the sales and keep in touch with your tenants, agents and solicitors throughout.