Sell A Tenanted Property
in London

In the UK, including London, landlords cannot simply evict a tenant solely because they want to sell the property. Tenants have legal rights and protections in place to ensure fair treatment and prevent arbitrary eviction. However, it’s possible to sell a property with a tenant in situ while respecting their rights.

Keep open communication with your tenant and tell them about your plans to sell as early as possible. This transparency can lay the foundation for a cooperative arrangement. You should also provide appropriate notice, considering the type of tenancy agreement. During the sales process, respect the terms of the existing lease, coordinate property viewings with the tenant, and uphold their rights. By approaching the situation with empathy, understanding, and adherence to legal requirements, you can navigate the process of selling a property with a tenant fairly and lawfully.

It can be a little complicated regarding the law when you need to give notice to a tenant when wanting to sell your property, but you are required to give a notice period to your existing tenants if you plan to sell. Different types of tenancy agreements require different types of notice periods. 

For an Assured Shorthold Tenancy (AST), you must give your tenant at least 2 months’ notice using a Section 21 notice, which is a “no-fault” eviction notice. If the tenancy is still within its fixed term, you can issue a Section 21 notice only after the fixed term ends. In this case, the notice period remains 2 months.

In a periodic tenancy, which is a month-to-month arrangement, the notice period is typically one full rental period, usually a month. Or if your agreed periodic tenancy is every 2 months, then you need to provide a 2 month notice period.

The cost of selling a tenanted property in London varies depending on the type of agency you use, if your property has an existing tenant and any improvements that need to be done to the property before it can be listed. As such, a specific number for selling a tenanted property can’t really be given, but here is a list of 8 of the main costs you will need to consider when selling your tenanted property: 

• Estate Agent Fees: Engaging an estate agent to manage the sale involves fees, typically a percentage of the property’s sale price – though Sold offer a new, industry-disruptive model for agent fees that limits how much the seller will have to pay. 
• Legal Fees: Sellers should budget for legal fees, including those associated with drafting contracts, ensuring compliance with relevant laws, and handling the transfer of ownership.
• Tenant-Related Costs: If the sale requires tenant cooperation, costs may include tenant incentives, such as covering moving expenses or offering reduced rent during the transition.
• Property Preparation: Depending on the property’s condition, there might be costs associated with preparing the property for sale, such as minor repairs, cleaning, or staging.
• Valuation Fees: If an updated property valuation is needed, budget for potential valuation fees to accurately assess the property’s market value.
• Conveyancing Costs: Conveyancing fees cover legal aspects of the property transfer, ensuring all legal requirements are met.
• Capital Gains Tax: Depending on the seller’s circumstances, capital gains tax may apply to the sale of an investment property. Consulting a tax professional is advised to understand tax implications.
• Mortgage Costs: If there’s an outstanding mortgage on the property, there may be fees related to early repayment or releasing the property from the mortgage.

Sold is well-equipped to assist you in selling your London-based tenanted property. With their expertise in the real estate market and specialisation in tenanted property transactions, Sold offers a range of services tailored to your needs. Better yet, Sold is very aware of the type of investors looking to get a foothold on London’s tenanted property ladder and may already have a buyer in mind for you. 

The one thing that helps any property transaction, but especially tenanted property transactions,  is open communication, which can be time-consuming and a little awkward for the seller. That is why Sold facilitates transparent discussions between the seller and existing tenants to ensure that all parties are informed and comfortable throughout the sales process. More so, Sold takes a tenant-focused approach to selling a tenanted property, respecting the rights and the needs of the existing tenant from the start. They coordinate viewings to minimise disruption and prioritise tenants’ convenience, fostering a cooperative atmosphere. 

Though Sold is more than experienced with selling rental properties, they know exactly what a potential tenanted property buyer is looking for in an existing tenanted property. That is why Sold emphasises the benefits of purchasing an income-generating asset, using marketing strategies to effectively communicate the value proposition to potential buyers. Sold already has an established network of investors and buyers, including those specifically interested in tenanted properties in the London area. Between the specialised marketing techniques and previous buyer relations, you will not have to wait long for your tenanted property to sell. 

An accurate property value can be the key turning point when a potential buyer is looking to take on a property with existing tenants. Book your free valuation today to understand the impacts of existing tenancies on the market value of your property and if selling your property with existing tenants will be worth the legal obligations you will need to abide by during the selling process. 

If you are selling a tenanted property for the first time and feel overwhelmed by the legalities of such an ordeal, there is no need to worry. Navigating the legal intricacies of selling a tenanted property is a forte of Sold. They ensure that all transactions adhere to legal requirements, safeguarding the interests of both parties. Sold’s experience in tenanted property sales streamlines the process for both sellers and buyers. Their guidance fosters an efficient transition of ownership while preserving tenant relationships, which is vital for a successful sale. After all, no potential buyers want to take on a tenanted property with a poor tenant-owner relationship.