The first point to consider is why you’re selling. Are you looking to free up as much capital as possible? Or are you time restrained and looking to offload as quickly as possible? The valuation you receive will be dependent on these factors. When selling as a portfolio you must also consider the potential purchaser. Buying a portfolio often means a discount is received on the overall market value. We must entice investors to want to buy them altogether.
Take into consideration the property locations and the state of repair that your properties are in. Be realistic, in yourself, about how much effort you, personally, are willing to put into the deal.
Regardless of the reason for the sale there are great benefits to selling property ‘in bulk’ over them being split and being sold individually. The average private treaty sale is 3-4months and selling the property individually means them all selling at different times. Not only this but there is likely to be numerous agents and solicitors dealing with each transaction which can be hard and quite stressful to keep on top of. Equity release will be inconsistent if the properties are sold individually. Selling as a portfolio means one transaction, one exchange date and one completion date as well as one agent.
Selling the property with tenants in-situ means the tenant(s) will still have the right to quiet enjoyment of the property during the sale. By selling to another investor the tenant(s) may remain where they are and there is no need to go through any eviction process. This often means there are no restrictions from the tenant’s side for maintenance and viewings of the property.
No eviction process means a faster sale. Evicting tenants can be a lengthy process and there is no guarantee that they will leave come eviction day. This can cause further problems both for you, as the landlord and for the sale.
proves beneficial for you and the buyer, as you’ll receive income up until the day of completion and the buyer will receive income from thereafter. The mortgage is therefore covered at all times which is the main appeal for active investors.
As we all know life as a student can look somewhat different to that of life far beyond our student years. As a student your accommodation is temporary and sometimes, as a result, can be treated in a way that reflects this. This is why it is paramount that when selling this type of accommodation, the condition is kept tip top.
Any potential purchaser will be looking for property that is ‘let ready’ for its next batch of students and therefore the property will need to look appealing and be free from any maintenance issues.
What is the rental income you have been receiving? Is it in line with market value? If the property is being purchased with students in situ then the number of potential purchasers will increase if the let is already at market value. This eliminates any need for the new buyer to taken over and increase the rent which may risk causing upset to the current tenants.
When selling a holiday let it is very common for potential purchasers to already have an invested interest in the local area. This is a benefit to you as they will already know of the local attractions and amenities so once enquires come in you know that you’ve already ticked boxes.
Your only hurdle now is the property presentation. Does the accommodations décor suit its surroundings? Is each room in good condition and ready for its next let? Are all maintenance issues up to date and resolved?
Potential purchasers will show a natural interest into the ‘track record’ of the business. How well has it performed over the last couple of years? Be prepared to answer questions on the rental incomes and peak/off peak periods too.
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