Selling a UK Rental Property

[Veem]

We own a house in the UK which has been rented out for 25 years. Generally we have had reasonable tenants, but the tolls of time and our enforced reliance on agents to 'manage' the house are finally telling. The house is now beginning to look very tired and is in need of some serious investment.

It has yielded a fair income over the years but we wonder now if we want the responsibility of organising fairly major renovation work from a distance. So, we are also considering another possibility; that of selling the house, accepting that the asking price would of necessity reflect its need for home improvements.

Does anyone have experience of a similar situation and can offer feedback on aspects such as CGS (payable in both UK and France?) or other relevant points we have not as yet considered?

As a tenancy is about to come to an end, we have only today seen current photos sent by the agent which have put this train of thought into motion.

Thanks in advance for advice.

[niemeyjt]

If the EPC is > C you will have issues renting it after 2025 - so selling now is an option.

In April UK CGT increases - so if selling better to get it through before April.

[Quiksilver]

Another good reason to sell is the ongoing UK legislation in favour of tenants at the expense of landlords. Googling 'Section 24 UK' should bring up some interesting reading

[Blaze]

We've been in the situation of selling a property that we bought for letting. Whilst the property was in France, the principle doesn't change : We had years of good income out of it and in the end made no profit on the sale, even after 10 years, as at the time of the sale the property market was not buoyant.

In your place, we would sell it as it is because a future owner might want to undo all the work you've done to spruce it up. It's not worth the hassle, particularly if you've had a good income out of it for 25 years.

[Veem]

I spoke to the letting agent this afternoon. Thankfully we are able to have frank and honest conversations. (She has a holiday home in France and a lifelong love of horses, so we have other things in common!) Having seen photographic evidence of various things which need attention I had already come to the conclusion that us trying to site manage that from France would be foolish. So I have already told her that if we decide to sell, we shall do none of the work. That way the house would be a 'doer upper' for someone who can buy at a reduced price and make their own decisions about how and what to do. We would be willing to adjust the sale price accordingly - to a degree.

[Blaze]

@Veem You won't regret it - you'll be able to sleep well at night ! We know just how awful it can be trying to sell a property, particularly under English law where the buyer can retract at the last moment. Plus the nightmare of trying to organise building/repair works from afar .... There comes a time when you''re better taking the easier option - life's too short !!

[Veem]

Having just heard that our latest tenant intended to withhold his last month's rent as a protest for lack of response to need for repairs and maintenance, I am fuming. I have always tried to be the type of landlord I might come across myself; fair and empathetic. As a result they have not been asked for increases in rent throughout Covid because I did not want to increase pressure on this little family. I have personally intervened with contractors to get work done and have spent many hours chasing the agents and contractors to deliver the best I could. I really think I've had enough.

Quiksilver, you are right about the tenants' rights outweighing those of the landlord. I have been required to pay for electricians to attend the house (at my cost) to replace lightbulbs. A tenant cannot be asked to do anything themselves that requires them to climb a stepladder. Ridiculous.

Blaze, you are right. I said to Biggles earlier that I'll have something less to worry about if we sell the house.
Grrrrrrrrrrrrrr

[niemeyjt]

I guess there is a deposit of at least a month's rent that will cover his/her failure to pay? Try to complete, as I say, before April to reduce CGT.

A succession of "bash the landlord" legislation is simply going to lead to more selling up, fewer properties for rent, landlords demanding higher rents and a guarantor - and somehow in their minds the politicians think this will be good for the tenants. Maybe the politicians who pass such laws are landlords licking their lips at charging higher rents?

Remember - there is no situation that a politician cannot make worse.

[Blaze]

There can be problems on both sides but who can blame people for doing short-term/holiday lets rather than long lets ? In this area, as in other popular tourist areas, locals complain that they cannot find anywhere to rent because everything is let out for holiday letting. Given the risks taken by a landlord, it's hardly surprising. In France there is the "trêve hivernale" where landlords ask/get people to leave over the winter. Some tenants stop paying their rent during this time knowing they can't be be chucked out. We were fortunate with the flat we let out - our tenants were always army and only ever stayed for a year. We never had any problems and had a very good copropriété company who organised things for us.

[Hotrodder]

I would never consider buying to let. I have been involved with too many renovations to sort out wanton destruction and neglect by tenants after the long legal battle to get the non-paying cretins evicted.