Sell A Buy-to-Let Property in Bristol
With approximately 134,000 people currently renting in the city, it is undoubtedly the most popular place in the south-west.
People of all ages move from nearby commuter towns such as Yate, Portishead and Keynsham to rent in the city centre – and Bristol also has two major universities, both of which include thousands of students that need accommodation for most of the year.
So, if your Bristol house is currently tenanted, and you are unable to evict your renters for the foreseeable future, you are not in an unusual position.
Selling a tenanted house is never easy, and with property sales in Bristol dropping by 21.5% over the past year, you may find it increasingly difficult to get a suitable buyer for your tenanted property.
Sold.co.uk is here to change that.
As one of Bristol’s most trusted cash house buyers, you can sell your tenanted house directly to us, in any condition. Your relationship with your renters, the length of your lease, or the amount of time they are entitled to stay does not impact on our ability to make you a fair, reasonable offer.
Whether you live in Bishopston, Kingswood, Downend, Knowle West or anywhere in between: you can contact Sold.co.uk for a free, no-obligation valuation on your tenanted house.
Selling a Buy To Let Property in Bristol
The average house in Bristol sells for roughly £384,000 – but if you have tenants living in situ, this can dramatically decrease the value of your property. Potential buyers consider a tenanted house as ‘riskier’ because they do not know how well-behaved the tenants may be, how reliably they will pay their rent, and whether they will move out anytime soon.
What is Buy to Let?
A Buy-to-Let mortgage involves purchasing a house in Bristol (or anywhere else in the country) with the sole intention of renting it out. You will usually agree with the lender that the house will be used only for this reason – in other words, you cannot live there yourself.
Usually, this type of mortgage is interest-only, and the person must be willing to sell, remortgage or pay off the remainder of the mortgage at the end of the term.
There is not technically a limit to the number of buy to let mortgages someone in the UK can have, but some lenders will limit the amount of money that they are willing to lend one person.
What can I expect from Bristol’s tenanted property market?
The average cost to rent in Bristol is £2,075 per calendar month – so, if you buy a ‘typical’ house in the city with the intention of renting it out, this is the sort of income that you can expect to make.
Keep in mind that the price of rent can decrease in certain areas – for example, Kingswood has a lower average monthly payment of £1,535.
There are thousands of new people moving to Bristol every year – whether for work, education or to enjoy all the amazing things the city has to offer. Plenty of these people will want to rent, so if your house is reasonably priced, you should be able to find a taker.
On the other hand, Bristol’s housing market has been through an unpredictable year.
There were roughly 3,500 fewer property sales over the past twelve months, compared to the previous year, although some economists argue that this has translated into a higher number of people renting (rather than buying) which could work in your favour.
Furthermore, properties in Bristol have an excellent track record of increasing in value year-on-year, which could make a purchase in the city a worthwhile idea. In the past year, house prices increased by 9%, and have gone up by 68% over the last 10 years.
However, with ever-rising interest rates and inflation, this trend may stagnate or go in the opposite direction, which is why lots of homeowners are considering selling their tenanted property.
Contact Sold.co.uk today for a free, no-obligation valuation on your tenanted house in Bristol.
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Is it better to sell a house with or without tenants?
Lots of property investors have their sights set on Bristol as an excellent city to make a hefty profit. However, when these people buy in the city, it is almost always preferable for the house to be empty.
Even if your tenants are well-behaved, amenable and pay on time, having tenants in situ limits the options available to a potential buyer. They cannot redecorate the property easily, update the appliances, or live in it themselves.
Equally, if your tenants are permitted to stay in the house indefinitely, it means that your new buyer has no control over when they move out, and therefore whether they will be forced to sell the property with tenants in-situ themselves.
For all of these reasons, tenanted houses sell for less than an untenanted property. It is generally better to sell an empty house, if you can.
If you cannot find a willing buyer who will pay a fair price for your tenanted house in Bristol, then contact Sold.co.uk today.
Does a sitting tenant devalue a property?
Yes, a sitting tenant devalues a property.
Some experts have suggested that it may reduce the value of your house by between 20 – 40%.
To sidestep this issue, some landlords offer their renters a cash incentive to move out. However, your tenants are not required to accept this.
Furthermore, you can wait until the tenancy agreement is finished, and then sell your house without any renters living there – but if you need to sell quickly, this might not be an option.
In many ways, selling directly to Sold.co.uk in Bristol is the best solution available to you. By doing this, you can avoid legal fees and get the house ‘out of your hair’ within one week.
A landlord’s rights when selling a house with tenants in Bristol
- You are allowed to sell your property
- You can choose the price you sell it for
- You can choose who to sell it to
- You can offer your tenants first refusal, if you wish
- You can keep receiving rent payments up until completion day
How much does it cost to sell a tenanted property?
Selling your tenanted house in Bristol is not necessarily more expensive than any other type of property. Your additional costs may only be caused by extra paperwork and legal processes, which your conveyancer may charge extra for.
In theory, you will save money on removal costs when selling a tenanted house, because you will not personally have as many items inside the house. Furthermore, by selling to a cash house buyer, you can avoid the expensive legal fees and estate agent’s commission that often comes in tandem with all property sales.
To sell your Bristol tenanted house to a cash house buyer, contact Sold.co.uk today.
Get a free estimate of your home’s current value
Pros & cons of selling a property with tenants in Bristol
You should weigh up all the advantages and drawbacks of selling your Bristol house with tenants in situ, before jumping to a decision.
One major advantage of selling your house with renters still living there is that you can keep earning an income right up until the date you sell. This means that if the deal takes longer than expected, it does not affect your incomings.
Furthermore, some property investors consider an in situ tenant as an asset – especially if they are cooperative and pay their bills on time. This is because it saves them the time and effort of finding a suitable renter themselves.
On the other hand, you will receive a significantly
lower price when you sell your house with tenants living there.
While the average property costs £384,000 in Bristol, you can expect to sell a ‘typical’ house for much lower than this if renters are living there.
You will also have to navigate the rights of your tenants when selling a house. Some tenancy agreements give them the right to refuse viewings, and they can make your life difficult in other ways, too – for example, making the place look untidy or being difficult to communicate with.
The average tenant tends to live in a property for just over 2 years. Therefore, if you currently have renters living in your Bristol house, it may only take a couple of years before they decide to move out, and you can therefore cash-in on your house without reducing its value. So, if you can wait a bit longer before selling, it may be worth doing so.
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Frequently Asked Questions About Selling A Tenanted Property in Bristol
Is it legal to sell with tenants in situ in Bristol?
Yes, you can sell your Bristol house with tenants in situ. You should respect their rights at all times during the process.
Is it difficult to sell a property with tenants?
It is usually more difficult to find a buyer for a tenanted house in Bristol because the purchaser cannot live there themselves. However, if you reduce your price sufficiently, you may still be able to sell on the open market. Alternatively, you can go straight to a cash house buyer like Sold.co.uk.
Can you evict a tenant because you want to sell the property in Bristol?
No, you cannot evict your tenant unless you have a legitimate reason for doing so. While some people may offer their renter a cash incentive to move out, they are not obligated to accept this.
How much notice do I have to give a tenant if I want to sell my Bristol house?
It is generally expected that you give 60 days’ notice to your renters before selling your Bristol property – but you should check your tenancy agreement to see if any clauses refer specifically to this matter.
Can my tenant refuse viewings to my Bristol home?
Your tenancy agreement will usually indicate what your renter is and isn’t allowed to do. This will provide information on whether they can refuse viewings at your Bristol house.
How long before a tenant becomes a sitting tenant in Bristol?
As soon as you are trying to sell your house in Bristol, but the tenant is still living there, they are referred to as a ‘sitting tenant’.
Who buys houses with sitting tenants in Bristol?
Plenty of property investors see the potential of buying a house in Bristol with tenants in situ. Although it puts off people who want to live in the house themselves, some people who invest in property for a living might look past this.
Who might want to sell a tenanted property in Bristol?
If you need a large sum of cash immediately – perhaps because you are facing repossession, in debt, relocating, downsizing, funding a trip abroad or any other number of things – selling your tenanted house in Bristol might be the only option.