Many people decide to become involved in the buy to let business, and as such they build up a property portfolio over time. This can, of course, be a very lucrative investment which is why the buy to let industry is booming. However, there are cases where you may be thinking ‘I want to sell my property portfolio’.
If this is the case, there are a number of considerations that you need to take into account and some key questions that you need to ask yourself such as:
These are amongst the key questions that you will need to consider in order to make a more informed decision with regards to which route is going to be the most suitable one. When it comes to something as important as this, you need to make sure you are fully aware of your options as the one you choose could affect a lot of important factors. This includes everything from the amount that you are able to get for your portfolio to the speed at which you can complete the sale.
Another thing you have to consider is whether you have existing tenants. If you have a buy to let portfolio for sale, the success of the sale may depend on the situation with your tenants. While some people or investors will be happy to purchase your portfolio with sitting tenants, others may want vacant possession. In most cases, if you have a buy to let portfolio for sale and you are looking to sell to a landlord or in some cases a cash investor, you will find that they will be happy to take on the sitting tenants as well as the tenancy agreement terms that are already in place, so you no longer have to worry about what to do about existing tenants. However, there are other cases where you may need the property to be empty in order to sell depending on who you are actually selling to.
If you are looking to sell a single property, then you can consider selling to a private purchaser on the open market who is looking to purchase the property as their home. Alternatively, you might be able to sell the property onto another landlord, a developer, a cash investor or even to the tenant you are renting the property out to if they are interested in purchasing. If you have a property portfolio for sale, however, then you will have a number of key options when it comes to selling. There are certain groups or people that tend to be interested in property portfolios for sale and this includes the following:
One key group that may be happy to consider purchasing your property portfolio is other landlords. There are plenty of landlords who are keen to build on their portfolio, and if they are in it for the long haul they may be happy to consider purchasing an existing portfolio from another landlord in order to expand their own. If you already have sitting tenants, this could actually help to boost the sale as it saves the new landlord having to go to the expense and hassle of finding new tenants once the sale has gone through. It is important to ensure that the new landlord is made aware of the tenancy agreement that is in place with your existing tenants, as he or she will need to abide by this legally because it is a binding agreement between the tenant and the landlord of the property, whoever that landlord might be.
It is also worth remembering that if you are selling to another landlord, you may have to conduct multiple viewings depending on the number of landlords interested and the amount of times they wish to visit. This means that you need to ensure you have your tenants onside, as otherwise they could make it difficult for you to gain access and conduct the viewings, which could essentially affect your ability to sell your portfolio.
When it comes to social housing in the UK, stock is very low compared to demand, which means that many housing associations and local authorities are in desperate need of new stock. You may therefore be able to consider selling to one of them with or without tenants. In many cases they will be happy to purchase whether or not there is a sitting tenant, as they have their own lengthy waiting lists so even if there is no tenant in place they have plenty of people that will be waiting to fill your property! However, one thing that you need to bear in mind is that housing associations and local authorities are on strict budgets and while they may be prepared to purchase your property portfolio quickly they will often only be able to offer well below the market value of the properties, so you could end up losing out substantially in terms of what you get for your portfolio. While it might seem tempting to sell to associations and councils simply in order to get a quick sale on your portfolio, you may find that there are other more lucrative solutions available that would also provide you with a quick sale.
The third option that is available to you if you want to sell your property portfolio is selling to a private UK property investor, as they are not only able to complete the purchase quickly but can also pay cash for the portfolio – and offer a far fairer price than housing associations and local authorities. This is often a preferred option for those who want to sell their buy to let property portfolio for a number of key reasons. Some of the many benefits of choosing this option include:
In short, when you go through a cash buyer for your property portfolio, you benefit from a speedy sale, a cash purchase, minimal hassle, no delays, and in many cases you are even able to get the asking price, which makes it a win-win situation. For example, Genuine Property Buyers has enabled many investors to sell their entire portfolios without any waiting around and without having to take a big financial hit, which is obviously what any seller wants when trying to secure the sale of a number of properties in one go.
There are various options to select from when it comes to where to sell your property portfolio. However, you need to make sure that you choose an option that gives you a fair deal in terms of price as well as eliminating the need to wait around. In addition, if you have tenanted properties you need to look at whether you are on good terms with them so that you can determine whether thing such as multiple viewings will be an issue. By taking all of these things into consideration, you will be able to make a more informed decision when it comes to making your sale.