Sell a Tenanted Property in Nottingham
There are endless things to see and do in Nottingham, so it’s no wonder that it has a bustling housing market. Sports, entertainment, and nature abound in this city, which is fondly known as the Queen of the Midlands.
Sports fans are keen to get a property close to the National Ice Centre and the home team, the Nottingham Panthers, and beauty-seekers are eager to explore the famed Sherwood Forest, which sits just 17 miles north of Nottingham.
If you are hoping to sell a house with a tenant in Nottingham, you’re in luck. Landlords are competing to snap up every kind of property, especially if there is a tenant in situ.
At Sold, we act as the middleman between buyers and sellers. We understand the difficulties of selling a property with tenants in Nottingham, and our team of professionals can simplify even the most difficult sale.
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Sold Can Sell a House With Tenants in Nottingham
The thought of selling a house with a sitting tenant in Nottingham can be daunting, especially for landlords who aren’t aware of renter’s rights and other legal complications. If you want to stay above board while you navigate the sale of your property, you should call us.
Sold is a cash house buyer that combines all the services of a high-street estate agent with the efficiency of immediately available funds for purchase. We oversee, manage, and facilitate the buying and selling of properties all over Nottingham. We have an extensive network of property professionals, including solicitors who specialise in tenant-in-situ cases. When you choose Sold, selling a house with tenants in Nottingham becomes super simple.
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Housing Market in Nottingham
Nottingham enjoys a reputation as the Queen of the Midlands. Students, professionals, and young couples flock to Nottingham to enjoy the bustling shopping centres, sports venues, and entertainment facilities. Estate agents predict that the housing market in Nottingham will stay ‘very strong’ despite the cost of living crisis, mortgage rates, and threats of a recession.
The demand for housing has boosted the price of properties in the last 12 months. As of now, the average price of a property in Nottingham is £245k, a number that has increased by £18.1k over the last year. If you are thinking of selling a house with tenants in Nottingham, now is the right time. Nottingham is experiencing a seller’s market, so strike while the iron is hot!
Rental Market in Nottingham
There are also endless benefits for hopeful landlords who want to purchase a property with a tenant in situ. Between September 2021 and September 2022, the average rent price in Nottingham increased by 5.9%. If this figure continues to rise, the average rent will reach £926 by 2025.
Given that the average house price in the UK is £286,000, Nottingham is an attractive prospect for landlords who want to buy a house cheaper than the national average and still secure an impressive amount of rent.
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Cost of Selling a Property With Tenants in Nottingham
When selling a property with tenants in Nottingham, renter’s rights aren’t the only thing that you have to think about. Landlords have sleepless nights over the cost of selling their properties.
On average, estate agents charge anything from 0.9% to 3.7% of whatever your property sells for. This fee might not seem too bad, but remember, the average house in Nottingham costs £245k. If your property sells for this amount, you will receive a bill for anything from £2,205 to £9,065.
Of course, solicitors are an invaluable piece of the puzzle. Without them, the process would be much harder and more complicated. Anyway, we don’t recommend DIY conveyancing!
The good news is that Sold offers a solution. When landlords sell a tenanted property in Nottingham with us, they don’t have to worry about hidden fees. It’s all part of our inclusive package.
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Do Sitting Tenants Have Rights?
Sitting tenants are protected under the law. Before landlords can start selling houses with tenants in Nottingham, they have to understand renter’s rights.
A tenant is protected under the Rent Act of 1977 if they entered the property before 1989. If this is the case, they have the right to reside in the property even when the tenancy agreement has expired. This is called having security of tenure. If the landlord wants to evict the tenant after the contract has expired, they have to go to court to prove that they have grounds for possession.
On top of that, renters have the right to stay in a property if the property changes hands before their tenancy agreement has expired. So, if you are selling a house with a sitting tenant in Nottingham, the tenants will stay in the property.
Frequently Asked Questions About Selling A Tenanted Property in Nottingham
What are buy-to-let properties?
If you are looking into selling a property with tenants in Nottingham, you need to have a good understanding of buy-to-let properties.
To get this kind of property, you need a buy-to-let mortgage, which allows you to rent the property out rather than live in it. Most of the time, buy-to-let mortgages are interest-only. The owner will make monthly repayments on the interest, rather than the amount owed on the mortgage. Interest payments are usually less than mortgage payments.
Is it legal to sell a house with tenants in Nottingham?
Selling a house with a sitting tenant in Nottingham? You have nothing to worry about, provided you follow the law.
It’s entirely legal to sell a property with a tenant in situ. The legal waters become muddied when landlords don’t respect the renter’s rights.
Before you even think about listing a property that has a sitting tenant, read through your rental agreement. Any good rental agreement will have a section that outlines your responsibilities as a landlord.
I'm selling a house with tenants in Nottingham, when will that happen?
Provided that your actions align with the tenancy agreement, nothing will happen. The tenant will continue to live in the property, even after it has passed hands to another owner.
Once you have signed the papers and sold your property to a new owner, you are no longer responsible for the property or the tenants.
Is it legal to evict a tenant in situ?
A tenant in situ (better known as a sitting tenant) is a tenant that lives in the property when it changes hands.
When you are selling a house with tenants in Nottingham, you need to tread carefully. This is especially true for people who want to evict their current tenants. Beware, it’s illegal to evict a tenant in situ.
Tenants have the legal right to reside in the property until the date that is stipulated in the tenancy agreement. If the rental agreement doesn’t expire before you sell your property, you will have to sell it with a tenant in situ.
Do tenants have to allow viewings?
You need to gauge how comfortable your tenants are with viewings.
It might seem counterintuitive, but tenants have the power to stop viewings. Landlords can’t force them to allow house viewings. In this case, the best you can do is offer prospective buyers old photos and videos.
Should I tell my tenants that I'm selling the property?
Selling a house can be stressful for landlords, but it can be even more frustrating for tenants in situ. New landlords may want to tweak rental agreements or make changes to the property. In the worst-case scenario, the tenants and landlords could clash.
Whatever the worry, it’s responsible (and kind) to tell your tenants that you are intending to sell the property. Besides, lots of rental agreements have a clause for this situation.
How much notice do I have to give tenants?
Before you attempt to sell your house, you need to inform your tenants. In most cases, landlords have to give their tenants 60 days’ notice.
When you give a tenant notice, you are informing them of your intent to regain possession of the property. You must give them a formal written notice, which should include the date that they must leave.
This should be more than enough time for tenants to arrange their affairs. But, if you want to be a forwarding-thinking landlord, you are well within your rights to give your tenants more than 60 days’ notice.
Why would I sell a house with tenants anyways?
There are lots of reasons why landlords choose to transfer ownership of their properties and tenants.
- New ventures – Lots of landlords become tired of the responsibility of looking after properties with tenants. The endless maintenance, management, and legal guidelines are enough to make some landlords sell up and move on to other ventures.
- Release equity – Simply enough, some landlords just want to release the equity that is in their properties, regardless of whether or not there is a tenant in situ.
- Profit – Rents and house prices are steadily increasing, so a lot of landlords sell up while the market is in their favour.
Should I sell my property with or without tenants in situ?
It all depends on the housing market and your personal preferences. The housing market in Nottingham is going strong but, like any market, it fluctuates. It might be easier to sell in Nottingham in July, but easier to sell a vacant property in October.
Here are a few of the advantages of selling a property that has a tenant in situ.
- You make money until the property is sold
- The new landlord can start making money immediately
- The new landlord doesn’t have to market their new property
And here are the disadvantages.
- Buyers might not want to commit to the responsibilities that come with being a landlord
- Buyers might be disinclined to look at your property if the tenants in situ are unfriendly
- Buyers might not agree with the rental agreement that is already in place
What is assured shorthold tenancy?
If you have an Assured Shorthold Tenancy Agreement (AST), you don’t have to worry about a lot of the problems that we’ve outlined.
In essence, an AST gives landlords the right to rent out a property but with the added benefit of being able to repossess it once the tenancy has finished. As long as the AST has reached its natural conclusion, you have the right to take control of the property.
ASTs can last for any amount of time. Tenants have a legal right to stay in the property for a minimum of six months, regardless of how long the AST is.
The only caveat is that landlords have to give their tenants two months’ notice of any reoccupation.