Selling property to current tenants

[trooperiziz]

I have a flat which is currently let out and I've decided to sell it. The current tenants have written to me to state an interest, which is nice.
They mentioned doing a deal direct with them to save on estate agent fees, which would also be nice, however the property is up for sale at the same estate agents that found the tenants and manage the property.
I'm assuming I can't just say to the estate agents that i'm not selling via them and then sell direct to the current tenants without the estate agents claiming finders fees?

I wouldn't have found the tenants without the estate agent, but i'm not sure if that transfers over to a finders fee for a sale?

[marcp68]

you need to check your contract with the letting agents.

Usually there is a clause in there which covers what percentage you will pay to them if the tennants decide to buy the property.

[mutt k]

marcp68 said:

you need to check your contract with the letting agents. Usually there is a clause in there which covers what percentage you will pay to them if the tennants decide to buy the property.

What he said. I'm just looking at letting out a flat we own and noticed in the agent's terms that they will claim a fee if a tenant they put into the flat goes on to buy it, whether or not they are involved in the negotiations. Nice work if you can get it, which funnily enough does not carry over into my market, dammit!

[trooperiziz]

marcp68 said:

you need to check your contract with the letting agents. Usually there is a clause in there which covers what percentage you will pay to them if the tennants decide to buy the property.

Doh! didn't think to look in the contract, I'll have a nose.

Thanks.

[Eric Mc]

Are you OK on the Capital Gains issues?

[trooperiziz]

Eric Mc said:

Are you OK on the Capital Gains issues?

Good question!

It was my flat that i've lived in for the past few years, moved jobs, rented it out for 6 months while I rented a place nearer work and saw how everything went. 4 months into the rental contract I've decided to sell the flat and then tenants made an offer this morning for £140k. I've currently got a £118k mortgage on the place and I bought it 2 years ago at £137.5k.

Do I have to worry about capital gains? I assumed not as the profit is less than £8.5k?



>> Edited by trooperiziz on Wednesday 1st February 10:49

[Davel]

I take it that you are selling on vacant possession and open market values, rather than as a tenanted property.

[trooperiziz]

Davel said:

I take it that you are selling on vacant possession and open market values, rather than as a tenanted property.

Yup.

[Rich25]

If you've lived there in the last 3 years then there is no CGT liability anyway.

[Rich25]

If you've lived there in the last 3 years then there is no CGT liability anyway.

[Eric Mc]

That is correct. It was once your Principal Private Residence and the three years immediate to the date of sale are always considered to be within that PPR period - even if you weren't living there.

[johnfm]

How could it only increase in value £2.5k in 2 years?? Is it in outer Mongolia?

[jagwirexkr]

What if they decided to move out and you decided not to sell your property for a while. But then out of the blue decided that it would be a good idea again and dealt directly with the tenants?

I'm no lawyer, I just work on the potential loopholes

[trooperiziz]

johnfm said:

How could it only increase in value £2.5k in 2 years?? Is it in outer Mongolia?

Close, leighton buzzard

Market has been stagnant there for the past 2 years. The only reason mine has gone up in value at all is due to its location.