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What is a Buy to Let Property?

A Buy to Let Property is a property which is being marketed to potential landlords for them to let out. It may or may not mean that the property comes with tenants living in the property with a contract, or simply that it is being marketed at potential landlords who might own several properties already and want to take out a Buy to Let mortgage on the property.

Selling with tenants in situ allows you to offload a property, and gain some freedom, while keeping your tenants in place.

Selling a Buy to Let Property

Selling a Buy to Let Property can be a great way to attract a buyer for your home but can also mean you have less people who might make an offer on your property.

Selling a property as a Buy to Let in Leeds can be a great way to access the rental market. Landlords often purchase a Buy to Let from an investment perspective. This means that the sale is less emotionally charged and logical, with a buyer who is well versed in the process which can lead to more guaranteed sales.

The Leeds Rental Market

Leeds has been described as the student capital of the north. Three universities including The University of Leeds, Leeds Beckett University and Leeds Trinity University mean there are over 60,000 students living in the city. This is one of the highest density student populations in the UK and all these people need accommodation.

Many landlords specialise in student accommodation as it can be a great business plan. It has a high turn around but with the number of students in the city, once you have a tenanted property word of mouth and even help from the universities will help it to stay so year after year.

A great bonus is that most students also have maintenance grants which pay for their accommodation, so landlords don’t have to worry about chasing them for rent payments.

Many students decide to stay living in Leeds once they have graduated. These people are usually starting out, working professionals looking for rental accommodation. They might stay living with other graduates or move out on their own with partners to start saving to buy their own home.

These tenants can make for a rich income for potential landlords. Many of them stay in this accommodation for several years and require minimal upkeep. They often have guarantors to cover their rent should they lose their income.

A lot of renters in Leeds are young families and working professionals. They are usually looking for slightly more expensive rental accommodation. This rental market can be a gold mine for landlords as these tenants are more likely to stay for long periods and keep from damaging the property beyond normal wear and tear.

All these factor in positively when considering selling a tenanted property in Leeds.

Sell Property with Tenants in Situ

A sitting tenant, or a tenant in situ, means that you are selling your property with that tenant/s still contractually entitled to live there. You are effectively passing on not just the property but the contract for the people living within it to the buyer.

Selling a house with tenants in Leeds can be a daunting prospect. It may be that you need to free up cash by selling the property, but you have tenants living in the house with a contract. It is illegal to evict tenants in order to sell the property, but it is absolutely fine to sell the property to a new owner with the tenants still living there.

Selling a tenanted property in Leeds can actually be a great move for you, your tenants and the buyer. It means that you will continue to get rental payments up until the sale, and that your tenants can stay inside their home with minimal disruption.

They do not have to look for a new home and can stay at the same rent with the same contract. It is also great for a buyer, as the new landlord will start receiving payments straight away once the contract goes through. It also means that if a sale falls through, you still have the income from your tenants to fall back on.

When you sell a property with sitting tenants, there are extra factors to consider than when selling with vacant possession (an empty Buy to Let). Having more people involved in the process can create disruption, and potentially make for a difficult sale. That’s why Sold is here to make the sale as fast and smooth as possible.

Assured Shorthold Tenancy Agreements

Most rental properties in the UK currently have Assured Short Hold tenancy agreements (AST). Most of these start with a 12-month agreement, which then turns into a rolling contract once that term is over.

The AST will also stipulate the legal agreement between the landlord and the renter, for example:

  • What the tenant is responsible for
  • What the landlord is responsible for
  • The start date of the fixed term
  • The rent agreed
  • The deposit and which scheme protects it
  • The address and details of both the tenant and landlord

An AST allows landlords to use a Section 21 notice to quit without them first giving a reason.

The Renters Reform Bill potentially signals the end of AST’s as it calls for changes in the law when it comes to open ended tenancies and landlords ending tenancies with Section 21. The Renters Reform Bill is likely to become law in 2024 and is predicted at first to only affect new tenancies. However, it is something to keep in mind when looking at selling a house with tenants in Leeds.

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