Sell Property Portfolio

How to sell a residential property portfolio:

There are certain things you have to keep in mind while selling your residential or commercial portfolio. When selling your residential portfolio you will need to provide some basic information to your conveyancer or property solicitor. This can be your:

  • Tax Number
  • Driving licence
  • Passport

When selling your property portfolio you should make sure you are aware of all the options as it can hugely affect a lot of imperative aspects. These aspects can vary from the amount you will be getting for your property portfolio to the speed at which you will be concluding your sale.

Do you have current tenants?

The success of your sale depends hugely on the current state of your tenants. There will be some investors happy to purchase your Portfolio with current tenants while other may want vacant possession. If your property is bought to let portfolio it is highly recommended that you look into selling it to a landlord or a cash investor as they will happily buy your portfolio without hesitation as well as it will help you avoid getting into legalities of vacating the tenants.

There are many ways through which you can sell your property portfolio.

1- Landlord to landlord:

There are many landlords who are interested in building their own portfolio, with the right price, you can attract investor buyers who another landlord like you who mostly are attracted to buy a tenanted property. You can either offer your property for auction but that won’t guarantee good price. This mostly happens when the landlord somehow wants or wishes an early retirement.

2- Market your Portfolio:

An alternative for auction sale is to market the tenanted property through a marketing medium at a national landlord to landlord medium. This will help you get the right buyers for your property portfolio. You can use an advertising agency as they have a large number of following as well as use a long list of strategies to attract the right buyers. Through this process, you can contact a large audience of interested buyers for your Property Portfolio.

It is worth remembering that while selling to another landlord. You will have to conduct multiple visits from different buyers depending on the number of interested buyers. So you must have your tenants on your side, in other cases, it would be difficult for you to show your property, which can hugely affect your ability to sell your property portfolio.

3- Property Investor:

The third option is that you can send your property portfolio to a private property investor, this is the best option because property investors complete the purchase quickly, pay in cash for your portfolio and also their prices are fairer than housing associations and local authorities.

Some of the benefits of choosing an investor include:

  • Once the price is agreed upon, the completion of sale tends to go fast and sometimes the process is completed within days
  • The investors take over the responsibility of the tenants so you won’t have to worry about that.
  • You won’t have to bother your tenants with multiple viewing as the inspection, in this case, involves a single visit
  • You won’t have to worry about getting paid as most of the sale happens with cash. This is a great relief as you won’t be left hanging and waiting around to see the potential buyer to raise capital to process the purchase.

Conclusion:

There are many factors that affect the whole process as well as there are many options you can choose from to sell your property portfolio. However, before making any choice it is very necessary that you analyze the market price and chose the option that gives you a fair deal in term of price, issues related to tenants, and eliminating any need to wait around for payment. It is also highly recommended that you stay on good terms with your tenants so they may co-operate with you on multiple viewing. With all these considerations in mind, you will be able to make a well-informed decision regarding your sale

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Frequently Asked Questions

Most frequent questions and answers

What’s The Best Way To Sell My Property Portfolio Of Buy To Let’s ?

The best way to sell your property portfolio of buy-to-let properties is through selling them to another landlord who’s looking for a good investment. The alternative would be letting the tenants stay in their current residence while you convert each home back into residential housing and trying to find potential buyers that are willing live there. It may take some time, but it will provide more cash upfront than if you try finding individual buyers or renters for all these homes at once!

Is selling my property portfolio as whole worth more than selling properties individually?

At first glance, it may seem like your property portfolio is worth the sum of its parts. But there are a few things you need to consider before making any decisions about selling: how long do I want my money tied up? How much will be left over after paying off mortgages and other debts? What’s more important–the revenue from one sale now, or holding on for the best value in five years’ time?”

What tax do I need pay to sell on my property portfolio sale ?

The likely tax you’ll pay when selling your investment property portfolio is Capital Gains Tax (CGT). There are no reliefs to be had as an investor. Plus the only deduction that can be made from CGT profit is the Capital Gains Tax free allowance, which for 2020/21 is £12,000. Across a large portfolio of properties worth hundreds or millions of Pounds this won’t make much difference on your final tax bill either way!

How do I value my portfolio?

Typically call 3 commercial estate agents and get them to value a number of properties. If they are scattered all over the country, then use a greater number. Then average them out.

Is the property market flooded with property portfolios?

Landlords in Britain are giving up on owning property as the market becomes more difficult to navigate. A new report finds that landlords plan to sell nearly 7% of their properties, while only 16% plan to buy additional ones; and a third of all landlords have plans to cull their holdings by one-third over the next year alone. The Nottingham Building Society surveyed 2,000 people with rental homes who found that 36 per cent had definite intentions not just for this coming year but also into 2022 if things don’t change soon

What happens if you sell a property portfolio in negative equity?

Selling a house in negative equity is expensive, you’ll need to break your mortgage terms and should only do so if you’re severely financially troubled. Selling the property will not cover what you owe on their mortgage which means you won’t be able to pay it off – meaning that selling can put you at risk for bankruptcy and/or a complete write-off of your credit score (depending on how much you owe).