Legislation has been introduced so that landlords must now give tenants 6 months’ notice before they can evict tenants until March 2021, except in the most serious of cases, such as incidents of anti-social behaviour and domestic abuse perpetrators.
The Second Wave…
However, as the global pandemic enters a second wave, it is hard to see that this rule will be reversed in spring. Despite many landlords supporting their tenants during this difficult period with reduced rent or a rent holiday, with the furlough scheme now ended and unemployment on the rise, some landlords are being forced to consider an exit strategy.
Tommy Hughes, Managing Director of WeBuyProperty, says: “We have been contacted by a number of landlords who, for their own personal financial reasons, desperately want to sell their buy-to-let property. The problem is that the six months’ notice period means it will be some time before they can sell with vacant possession, and even longer if they have to go through eviction proceedings. To get around this, we’re finding that some landlords are enquiring about selling their property with their tenant(s) in situ.”
However, selling a property with a “tenant in situ” or “sitting tenant”, terms used to describe a person (or people) who has a legal tenancy which entitles them to occupy a property, is not without its challenges because the market for a house with a sitting tenant is generally quite small.
By having a tenant in situ, landlords limit the number of people who would be interested in buying their property as it rules out anyone who would want to purchase it to live in themselves. That then leaves landlords or investors, but this can still prove difficult because many banks and building societies will not give a mortgage on a property with a sitting tenant.
One quick and straightforward solutions for landlords who do not want to wait for vacant possession could be to sell their property to a cash buyer, complete with tenant in situ. Although landlords are less likely to achieve full market value, a cash buyer will be able to give a guaranteed completion in a fairly quick time-frame without the hassle of having to wait to evict the tenant.
“From an investors point of view, buying a property with a tenant in situ can be a win-win, purchasing a property with a ready-made income. With tenants less likely to move in the current climate it also means that income could be guaranteed for longer.”
For advice about selling a property with a tenant in situ, contact WeBuyProperty
Phone number: 0207 449 9797