Frequently asked questions
Should I sell now or wait until the property becomes vacant?
Property prices fluctuate with the market cycles and values can go down as well as up. The other thing to consider is that a sitting tenancy can be passed down to a spouse or family member who has been living continuously with the successor tenant for two years prior to that tenant’s demise. In such situations it may take two more generations before possession arises. A sale now will release precious capital which would otherwise be tied up for many years.
Sitting tenancies with registered rents have their rent set by The Rent Service. Under current legislation the amount that the rent can increase is capped and reviews are set every second year. Consequently the scope for rental growth is limited.
Why does an investment company want to buy them?
It’s a question of size. The more properties held the chances increase of a possession arising through leaving or the death of a tenant. Where an investment company owns several properties running into many hundreds or more then the chances increase exponentially whereas if there is only one property then there is only one chance.
Why not go to an estate agent?
Most estate agents are unfamiliar with sitting tenancies and how to value them. An estate agent will charge you fees. We don’t because we are the direct buyer. Moreover, an estate agent will want to arrange viewings which may upset your tenant particularly if they are elderly.
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