Smith Posted February 15, 2023 Share Posted February 15, 2023 As per title. I've seen this on several listings recently. But you have to wonder, why do these BTL landlords offloading their properties think another BTL landlord will want to buy them? If it's no longer profitable for them then it won't be for anyone else either. Quote Link to comment Share on other sites More sharing options...
Blobsy Posted February 15, 2023 Share Posted February 15, 2023 Prob ok if they are a cash buyer long term LL. Plenty of places to put your cash now though without the worry of a tenant having a weed farm in the loft. Quote Link to comment Share on other sites More sharing options...
Smith Posted February 15, 2023 Author Share Posted February 15, 2023 There's one listed today with a gross yield of 3.8%. Coincidentally, I got an email from Investec today saying the rate on my savings account is going up to 3.5%. So that's not going to attract many cash investors! Quote Link to comment Share on other sites More sharing options...
MarkD Posted February 15, 2023 Share Posted February 15, 2023 3 minutes ago, Smith said: There's one listed today with a gross yield of 3.8%. Coincidentally, I got an email from Investec today saying the rate on my savings account is going up to 3.5%. So that's not going to attract many cash investors! Especially when you factor in a potential price crash! Quote Link to comment Share on other sites More sharing options...
Orb Posted February 15, 2023 Share Posted February 15, 2023 I think their mindset is still stuck in the time of ZIRP when buying a BTL was comparatively lucrative, so they still market them as "investements" with a yield. I'm not sure these properties with tenants in situ will sell particularly well. I'd want 20% off asking at least, just because tenants are, in my opinion, a big potential liability. Some recent horror stories almost make me feel sorry for the scumlords. Almost. Of course, potential owner occupiers could buy them, and evict the tenants, but I wouldn't like to do that, for the tenants' sake, and mine. If I was the landlord, I'd seriously consider approaching the tenants to ask if they would consider buying it. Quote Link to comment Share on other sites More sharing options...
msi Posted February 15, 2023 Share Posted February 15, 2023 36 minutes ago, Orb said: I think their mindset is still stuck in the time of ZIRP when buying a BTL was comparatively lucrative, so they still market them as "investements" with a yield. I'm not sure these properties with tenants in situ will sell particularly well. I'd want 20% off asking at least, just because tenants are, in my opinion, a big potential liability. Some recent horror stories almost make me feel sorry for the scumlords. Almost. Of course, potential owner occupiers could buy them, and evict the tenants, but I wouldn't like to do that, for the tenants' sake, and mine. If I was the landlord, I'd seriously consider approaching the tenants to ask if they would consider buying it. They would have to offer a hefty reduction and we all know LL aren't giving it away, innit. Seriously we are in the delusion / run out of greater fools phase. Quote Link to comment Share on other sites More sharing options...
Orb Posted February 15, 2023 Share Posted February 15, 2023 37 minutes ago, msi said: They would have to offer a hefty reduction and we all know LL aren't giving it away, innit. Might be a savvy move though, just to get rid 😄 Quote Link to comment Share on other sites More sharing options...
Crowned Posted February 16, 2023 Share Posted February 16, 2023 The only reason to sell with tenants in, is if you can't personally afford to take on the property costs yourself (mortgage, utilities need to stay connected, insurance which will cover you for an unoccupied house, tax etc.) that need to be covered from the day the tenants move out to the day you complete. Also once the tenants leave you'll like need a couple of grand to tidy the play up and get it ready to sell. Likely a sign the LL is financially against the wall. Quote Link to comment Share on other sites More sharing options...
regprentice Posted February 16, 2023 Share Posted February 16, 2023 58 minutes ago, crow said: The only reason to sell with tenants in, is ... is not that uncommon. I'd imagine your property is desirable with a long standing tennant. Its happened to me before. i was renting a flat in Deptford and one night someone was banging on the door asking to come in and look around. he had an auction catalogue in his hand and claimed the whole townhouse of 4 flats was up for auction. i told him to **** off and get away from my flat but he was right and he ended up being my new landlord. i believe the initial landlord converted old properties to flats, got tenants in the new flat, then sold them as a job lot with sitting tenants on a property by property basis. Quote Link to comment Share on other sites More sharing options...
Crowned Posted February 17, 2023 Share Posted February 17, 2023 (edited) True, I should have said "the only reason a landlord like this..." (I'd meant to post a link, but can't find it now) but I would have said... look at the house, it hasn't been looked after (by the landlord or tenants, but assuming the landlord) - I can't imagine many other landlords rushing to buy a place in that state, with sitting tenants who will be hard to raise the rent on. Edited February 17, 2023 by crow Quote Link to comment Share on other sites More sharing options...
Up the spout Posted February 17, 2023 Share Posted February 17, 2023 On 15/02/2023 at 19:34, Orb said: I think their mindset is still stuck in the time of ZIRP when buying a BTL was comparatively lucrative, so they still market them as "investements" with a yield. I'm not sure these properties with tenants in situ will sell particularly well. I'd want 20% off asking at least, just because tenants are, in my opinion, a big potential liability. Some recent horror stories almost make me feel sorry for the scumlords. Almost. Of course, potential owner occupiers could buy them, and evict the tenants, but I wouldn't like to do that, for the tenants' sake, and mine. If I was the landlord, I'd seriously consider approaching the tenants to ask if they would consider buying it. Ooh, do tell. Quote Link to comment Share on other sites More sharing options...
Orb Posted February 17, 2023 Share Posted February 17, 2023 2 hours ago, Up the spout said: Ooh, do tell. Ha, links to stories posted on this forum. I read one the other day about some bloke who couldn't get his non-paying tenant out, and even the court ruled in her favour. It was costing him a fortune each month, and he was frantic about how he was going to lose his own house over it. Quote Link to comment Share on other sites More sharing options...
morty Posted February 17, 2023 Share Posted February 17, 2023 (edited) Bringing the btl house of cards crashing down only a good thing to me. I’m on this site because I believe a property is to live in, not to speculate. Edited February 17, 2023 by morty Getting angry about btl lol Quote Link to comment Share on other sites More sharing options...
Up the spout Posted February 17, 2023 Share Posted February 17, 2023 5 hours ago, Orb said: Ha, links to stories posted on this forum. I read one the other day about some bloke who couldn't get his non-paying tenant out, and even the court ruled in her favour. It was costing him a fortune each month, and he was frantic about how he was going to lose his own house over it. He'd have to take in sick bunnies and stray dogs to get any sympathy out of me. BTL is a business; not a hobby. Quote Link to comment Share on other sites More sharing options...
Blobsy Posted February 17, 2023 Share Posted February 17, 2023 Looking forward to the next round of Big Time Loser (©️ @Gawdon Bwown) articles in the Telegraph/Mail this weekend. The comment sections give me hours of pleasure, avocados, NI stamps, high interest rates in the 80s, and the classic ‘I’ve voted Tory all my life, never again!’ Hahaha Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 18, 2023 Share Posted February 18, 2023 On 16/02/2023 at 08:37, crow said: The only reason to sell with tenants in, is if you can't personally afford to take on the property costs yourself (mortgage, utilities need to stay connected, insurance which will cover you for an unoccupied house, tax etc.) that need to be covered from the day the tenants move out to the day you complete. Also once the tenants leave you'll like need a couple of grand to tidy the play up and get it ready to sell. Likely a sign the LL is financially against the wall. It is. And any buyer will know that. Quote Link to comment Share on other sites More sharing options...
EnglishinWales Posted February 19, 2023 Share Posted February 19, 2023 On 17/02/2023 at 12:46, Orb said: Ha, links to stories posted on this forum. I read one the other day about some bloke who couldn't get his non-paying tenant out, and even the court ruled in her favour. It was costing him a fortune each month, and he was frantic about how he was going to lose his own house over it. Probably the court didn't rule in her favour, he just didn't have the correct paperwork, the court's won't be disrespected. Quote Link to comment Share on other sites More sharing options...
Smith Posted March 9, 2023 Author Share Posted March 9, 2023 Just seen one where the landlord selling has given the tenants a new two-year contract to ensure that only another landlord can buy it. Although good for the tenants, suspect the landlord will regret that decision as no 'investors' are currently buying. So they've probably just made it unsellable for two years. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted March 9, 2023 Share Posted March 9, 2023 4 hours ago, Smith said: So they've probably just made it unsellable for two years It was probably going to be unselleable for two years already. At least they've locked in a tennant so shoould get some funds to cover some costs. Perhaps a smarter move than it first appears ? Quote Link to comment Share on other sites More sharing options...
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