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Selling a property portfolio to a cash buyer. Mon, 18 Nov 2013 20:29

Property owners choose  to sell their portfolio for various reasons.

While many landlords quite rightly view property as a long term investment, the inevitable day will arrive when a landlord is ready to exit their property portfolio.


At this point, the landlord should consider the pros and cons of selling the entire portfolio as one lot, or break it up piecemeal and sell off individual units.

One obvious concern is that, if the tenant hears that their rental property (a.k.a. home) is being sold, it may "spook" them and cause them to leave, creating a void while the property is being marketed for sale.

Multiply this by several properties, and this could cause the landlord significant financial hardship during the void periods and once you have lost the revenue from the rents.

Additionally, rental properties may need some updating and refurbishment to bring them up to the standard to appeal to an owner/occupier and the landlord may be reluctant to spend this money at the end of his portfolio's life.

There is also the issue of estate agent fees which are typically around 2% plus VAT and the loss of rent while the properties are vacant which could be up to 12 months if the local property market is sluggish, and the buyer is in a chain.

So a landlord exiting a property portfolio valued at £3 million could expect to pay estate agent fees of £72K when you allow for VAT too.

On top of this, there would be legal fees of around £1,000 per property.

Taking the above in account, there is an alternative for the landlord to sell the entire property portfolio to a cash buyer who will also take on any properties with tenants in situ, flats with short leases, and any properties which you consider to be a "problem".

This would mean no voids, no estate agent fees, and, in the case of Dream House Buyer, we pay the seller's legal fees.

Richard Hill, Founder of Dream House Buyer, is keen to point out the advantages of selling entire portfolios:

"Breaking up a portfolio for sale can be a long and painful process for the landlord, resulting in voids and uncertainty at the time when the landlord is looking forward to retirement.  

Recent reports also suggest that, due to high demand, it is taking around 4 to 6 weeks to get a lender's valuation done, meaning that the sale cannot even get underway until that valuation is completed.

Add to that the fact that a record number of property transactions are falling through, and a landlord could find that selling the portfolio is fraught with uncertainty.

We consider entire portfolios to purchase for cash, taking on sitting tenants, AST tenants, problem properties, properties in need of refurbishment, flats with short leases, or any of type of property which you want to sell fast and without hassle.

This allows landlords to know exactly when the money is in the bank and that their portfolio is taken off their hands in one swift and easy transaction with minimal fuss and hassle.  Tenants can also remain in their homes and Dream House Buyer simply takes over the property as the new landlord".

We do not rely on banks or finance, and pay cash for your property, which enables us to buy property very quickly. We really can work to any timescale that you request, be it days, weeks or months, we tailor the timescale of the sale to suit you - our customer".

Find out why we are different to other quick sale house companies >>> here.


Dream House Buyer is a family owned property buying company that considers all types of property, and we buy property with sitting tenants too, regardless of whether they have been there for 6 months, or 60 years.  We will make an instant cash offer for any property in the UK, regardless of the size, location, condition or value.

We will buy any property that you might consider a problem - including property with sitting tenants, flats with short leases, problem tenants, unmortgageable and structurally damaged property.  We also buy ground rents and portfolios. If you think we can help, then please invite us to make you an immediate cash offer for your property.

Contact us on 0800 1577 497 or email us info@dreamhousebuyer.co.uk

 

 






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