Category: Selling

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Sell a House With Tenants: Can You Evict if You Need to Sell?

selling a house with tenants

Sell a House With Tenants: Can You Evict if You Need to Sell?

Looking at how to sell a property with tenants, how sitting tenants can affect a landlord when they sell a house, and how we can help you sell.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

Having a buy-to-let property is a wonderful investment opportunity for many people, that lets them boost their retirement fund and puts them more in control of their own finances. But when the time comes to sell a house with tenants, you can be left wondering whether you will need to evict or keep them in the property.  

 

In this blog post, we will be looking at how you can sell a property with tenants, whether you need to evict your tenants in order to sell and if a sitting tenant devalues your property. 

 

Looking for a quick answer? Check out our interactive menu to the side! 

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How much does a sitting tenant devalue a property?

Unfortunately, when it comes to selling a house with tenants, they do devalue your property. There is no blanket answer to this question, but estimates suggest that selling a property with tenants in situ can devalue your property by 20% if it has an assured shorthold tenancy in place. If you have a property where the tenancy agreement is assured or regulated then the tenant has greater rights, and you will be looking at your property value being reduced from anywhere between 30% to 40%. 

Can you evict tenants if you need to sell?

If you are looking to sell your buy-to-let property that has tenants in situ, then you will need to tread carefully, as you are not entitled to evict the tenants. You will only be able to sell the property with your tenants as sitting tenants, or you will need to give them notice of end tenancy. You will be able to do this by either using section 21 of the Housing Act 1988 or section 8 of the Housing Act 1988.  

Section 21: 

If you use section 21 of the Housing Act 1988, you will need to give at least 2 months’ notice in writing. You can use Section 21 either: 

 

  • During a tenancy if there is no fixed end date (called a periodic tenancy)
  • After a fixed tenancy ends (as long as there is a written contract) 

 

However, you cannot use Section 21 if: 

 

  • it has been less than 4 months since the tenancy started or the fixed term has not yet ended. If there is a clause in the agreement that allows you to serve a Section 21, then this can happen
  • the tenancy started after October 2015 and neglected to use a letter with all the same information on it as a form 6a, or a form 6a
  • as the landlord you have not repaid any unlawful fees or deposits that you charged your tenant 
  • your buy-to-let is classed as a house of multiple occupancy (HMO)  but you do not have an HMO license from the local council
  • you have not put your tenant deposit in a deposit protection scheme and the tenancy started after April 2007
  • the council has served a notice on the property in the last 6 months that says they will do emergency works or an improvement notice

Section 8: 

A section 8  notice will give you reasons for wanting possession such as: 

 

  • your tenants have used your rental property for illegal reasons 
  • there is a ‘break clause’ in your contract 
  • you wish to move into the property for yourself 
  • your tenants have fallen behind on rental payments 
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How much notice does a landlord have to give a tenant before selling the property?

When your tenants first moved into your property, you will both have signed a rental agreement. This gives both parties certain rights and responsibilities whilst inhabiting the property. When you decide to sell, the first step you will need to take is to inform your existing tenants of your plans. Every rental agreement is different, but most will include a clause which states how much notice landlords are required to give tenants when the property is being sold and the agreement is coming to an end. It is normally 60 days, however, it can be more or less depending on the terms of the agreement. 

How do you conduct viewings with tenants? 

When selling a tenanted property, you do not automatically have the right to show new tenants, another landlord, estate agents or potential buyers around the property. You will only be able to do this if it is in your tenancy agreement and if you give the existing tenant 24-hour notice in writing. Failing this, you will need to get the tenant’s permission.  

What if the buyer becomes the new landlord? 

If you are selling with tenants, then the buyer will become the new landlord. The original tenancy agreement will still be valid, but the new buyer will need to change the name on the agreement from your name to theirs. It is always a wise idea to get the new tenancy agreement agreed upon and signed as quickly as possible to avoid delays and disruption further down the line. 

 

If you have just purchased a buy-to-let property and your new tenants are refusing to sign, they are within their rights to do so. If this is the case, you should write to the new tenants and inform them of the change of landlord as well as the new payment details. 

Selling a tenanted property checklist 

If you are selling a house with sitting tenants, then there are extra documents that you will need to be aware of: 

 

  • Signed tenancy agreement 
  • Inventory 
  • Safety certificates 
  • Information regarding the deposit protection scheme 
  • Condition report 
  • Evidence of the tenants right to rent 

 

On top of this, your tenant’s deposit will need to be transferred to your new buyer. Using the deposit protection scheme you may be able to transfer it or you can arrange to transfer it directly to the buyer. 

How quickly can I sell my house with a renter in it?

If you are looking to sell your property with a renter included then the amount of time that you spend on the open market will most likely be significantly longer than it would be if you served notice and sold with vacant possession. As you will be selling with tenants, you will need to organise viewings around your tenants and may spend a long time looking for a buyer who is interested not just in the property, but in taking over the tenancy as well. 

 

If you decide to sell your property with sitting tenants, then a cash buyer may be the way forward. This is because a cash buyer will purchase a property regardless of location or condition. However, in return for the ease of sale, a cash buyer will offer you your property below market value.   

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Pros and cons of selling a house with tenants

As with any selling decision, there are pros and cons to selling property with tenants. Below, we take a closer look at some of the pros and cons of selling a house with a tenant. 

Pros

A big advantage to selling your property with tenants is that you will not lose out on rental income. If you decide to evict your tenants and sell the vacant property, you will be losing out on rental income during the time that you are on the open market. You will also be having to cover the mortgage payments on the property during this time so by letting your tenants live in the property, you are not at a loss. 

 

The flip side to this is the new buyer will receive a guaranteed yield. As they are purchasing a property with tenants already included, they will start making money on their purchase straight away. 

Another advantage to having your tenants remain in the property is that it causes less disruption. Evicting tenants is never a pleasant or easy job to do, and neither is being told you need to leave your home. By keeping your tenants in the property you will help to keep disruption to a minimum. It is important to be upfront and honest about the fact you are selling, what it will mean for them and how the process will work in order to keep disruption low. 

Unfortunately, if you leave the property vacant, it is at a higher risk of being damaged. This can occur through either burglary, squatting, vandalism, or even household issues going unnoticed such as leaks or lack of ventilation. Depending on the type of landlord insurance you have taken out, some periods of vacancies should be covered, but if it is empty for an extended period, then you may need to look into taking out specialist vacant-property cover. 

Cons

If you are putting a tenanted property on the market, then the chances are your new buyer will be a landlord. This unfortunately limits the number of interested potential buyers significantly as there are roughly 2.6 million landlords in the UK, which is around 10% of the total 28 million households. On top of this, landlords tend to be more business-minded and often drive a harder bargain. 

As we have already mentioned, sitting tenants have certain rights which can prove difficult if they do not wish to cooperate with the sale. They are entitled to ‘quiet enjoyment’ of their property and if they do not want to allow access to their home for viewings, valuations, or photographs it can make selling your home a lot more difficult. 

Tenanted property sales can also be more complex. This is because there is more paperwork required for the sale, so this will need to be made available to any potential buyers. This includes documents such as EPCs, gas safety certificates, EICR and others. You will also need to arrange to transfer the deposit to the new buyer as well as any portion of the rent that month should completion day not fall on rent day. 

It’s no secret that over the last few years house prices have soared across the UK. If you are a landlord who has not increased their rent to keep up with house price inflation then you may find yourself unstuck. As the value of rental properties is determined by the yield an investor can achieve from income, it can mean the figure you are asking for may not add up. 

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How do I sell my house with sitting tenants?

If you are trying to sell a rental property, there are 5 main ways that you can do so. Below we take a closer look at some of the ways you can sell a rental property: 

Serve notice

If you want to sell your rented property, then the main way that you can do this is by giving your tenants notice. This way, you will be able to sell the property once the tenant leaves and with vacant possession. In order to be able to do this you will need to check the tenancy agreement to see if you are legally able to serve notice. 

If you have an assured shorthold tenancy, then you may be able to issue either a section 21 or a section 8 notice. 

If the tenancy agreement is a regulated or an assured tenancy, then you may not be legally allowed to serve notice. If this is the case then you may have to try a different selling option. 

Wait it out 

Your next option for selling a house with tenants is to wait until the tenancy is over and then sell with vacant possession. If you plan to sell this way, it is a good idea to check the tenancy agreement to ensure that there is an end date and to find out when it is. If you have a property with an assured shorthold tenancy on which it will be able to end, however, other kinds may not have an end date so it is important to check. 

Ask your tenant to purchase 

Another option you can take is to ask your tenant to purchase your investment property. A sitting tenant will not have the right to buy their home unless it is a local authority property. But you are able to offer them the opportunity to purchase it. 

 

This may not always be the best option, as your sitting tenant may not want to buy your property, they may be unable to secure a mortgage, or they may not be able to afford it. 

Sell with tenants in situ

Another option for selling is to sell your property to another landlord or a property investor. If this is a route that you decide you want to explore, then your new buyer will take over your tenancy or replace it with a new one, and they will become the new landlord.

  

If you are looking to sell your property then you can sell through us. Here at The Property Selling Company, we believe that selling a property should be three things: fast, effortless, and free. 

 

This is why we have made it our mission to change the way that you sell your property. Rather than forking out for expensive legal bills and estate agent payments, we cover it for you. It’s just one of the ways that we help to take the stress out of selling. 

 

Our dedicated team of property experts are by your side through every step of your house-selling journey, helping you to sell your new build in as little as 28 days. 

 

So if you are ready to sell a house with tenants, get in touch today by filling out one of our free, no-obligation online valuation forms today! 

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Selling a fixer upper house without having to renovate

Child within a fixer upper house

Selling a fixer upper house without having to renovate

Is selling a fixer upper house without renovating the way forwards?

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

Selling a house can be a complicated and often emotionally draining decision, and when that house happens to be a fixer-upper, the process can become even more daunting. The idea of renovating a property to perfection before listing it for sale is a common misconception that many homeowners hold. 

 

However, the good news is that you can successfully sell a fixer-upper home without undertaking costly and time consuming renovations. 

 

In this article we’ll explore how you can navigate the open market, how to enlist the expertise of expert real estate agents, and leverage the growing market demand for fixer-uppers to sell your home efficiently and profitably.

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Selling a fixer upper house without having to renovate

According to Statista, in 2020, around 21,400,000 UK households were built before 2000, meaning almost 86% of the UK housing stock is not classed as a new build as they will have had more than one owner. 

 

Older housing is more likely to need a renovation, remodel or fixing up due to the wear and tear of family life, older construction processes and natural erosion. According to Money.co.uk, in 2022, 88.1% of UK households underwent some form of renovation.

 

But, house renovations can cost upwards of £70,000 which is way outside of the average UK annual salary, bringing us to one question: Selling a fixer upper house without having to renovate — is it a good idea?

 

Well, although slightly biased, we would argue that yes, yes it is! You will easily be able to sell a fixer upper house without needing to renovate. Find out more below…

Is it worth renovating a house to sell?

Renovating a house to sell, may reap you benefits like a higher selling price or more interest from buyers but the time and investment you put in may not appreciate in the way that you wish.

 

Many renovations take months to complete, and can sometimes take far longer than expected if issues arise within the property. You could spend far more renovating the property than you make when you put it on the market. 

 

We would always recommend making sure properties look presentable before you put them on the market, but that doesn’t necessarily mean you should renovate. It could just be making sure there are minor repairs completed, the building is clean of any rubbish or even just has a fresh coat of paint. 

 

Furthermore, if you are looking for slightly more when selling your fixer upper house, you could try and obtain planning permission for a single storey house extension, which could drive your house price up by 10%. 

 

Alternatively, you could purchase an acre of land, or piece of land to extend the garden. If you live in an area which has limited land supply, then this could drive your house price tenfold.

 

Many of the people we sell houses to are used to taking up the mantle of fixer upper homes, so you don’t have to!

How do you value a house that needs work?

When you look to sell your house that needs work, you should look to get an honest valuation of the property. The extent of the repairs needed on the property will drastically impact the valuation you receive, so you will need to bear this in mind when you put it on the open market. 

 

Usually, fixer upper houses are seen as less desirable properties to the vast majority of potential buyers, which can lead to lower offers and longer times on the market. But, luckily, fixer upper houses are sought out by niche buyers who look to flip property and turn a profit.

What is a property flipper?

A property flipper is someone who purchases a property, often below market value, renovates them and then sells them at full market value. They can act as a lifeline for people with run down properties, as they will be actively looking for properties that can make them great returns. 

 

Property flippers are often well versed in buying and selling a fixer upper house, and will know exactly what properties to look for. Property flipping is a form of investment strategy and so different flippers will have different target houses, some will look at minor fixes for quick flips, while others will look for run down barns for amazing conversions.

How do you calculate the market value of a property?

When looking to put your house on the market, you will need to provide an honest valuation of your fixer upper house. You can use the average from three or four estate agent valuations to formulate a rough valuation, and then combine this with local housing market data. 

 

If your house is in a neighbourhood with other properties on the market, then you should ensure that your property is similar to theirs. But, you will also need to factor in the fact your property needs renovating. This could mean your valuation is 5-15% lower than your neighbours.

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What factors can affect a house valuation?

When it comes to selling a fixer upper house, determining its value can be a challenging puzzle, where every missing piece – whether its the state of repair, location or market trends — plays a vital role in the final picture. 

 

But, there are also numerous factors within a property that can affect how much it sells for on the open market, here are just a few:

Cracks in ceilings, walls and uneven floors

£13,500 fixing costs.

While most cracks are harmless and are just a normal occurrence, dramatic wide and deep cracks in ceilings and walls have the potential to knock thousands off your home value. Depending on the severity and extent of damage and whether or not it suffers from subsidence, could dramatically affect your house valuation.

Poorly installed windows, doors & insulation

£1,500 fixing costs.

Windows, doors & insulation play a crucial role in a property’s energy efficiency, if any one of them is poorly installed then it allows drafts, and the heat/cold transfer — dramatically increasing energy bills. Furthermore, poorly installed windows and doors could compromise on a building’s security.

Asbestos

£2,500 removing costs.

Although Asbestos was banned in 1999, many of the UK’s older housing stock may include Asbestos due to it being a common building material.

Damp & mould

£2,300 fixing cost.

Dampness and mould are not only an eye-sore but can also be a health hazard. They indicate that the house has moisture-related issues in the house, which could be due to poor ventilation, plumbing issues or leaks. The presence of damp and mould can reduce a house’s value as buyers will factor in the cost of remediation.

A leaking roof

£7,000 fixing cost. 

A leaking roof is a critical issue with a property as it can cause damage to the interior of the house, including the ceiling, walls and flooring. Roof repairs or replacements are often costly, and a leaking roof will lead to a lower house valuation.

Japanese Knotweed

£3,000 removing cost.

Japanese Knotweed is an invasive plant that causes damage to the foundation and structure of a house. Its presence can be a significant concern for buyers and mortgage lenders, with some lenders even refusing to provide mortgages on properties with an infestation.

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Is it worth buying a house that needs updating?

Buying a fixer-upper house offers you an avenue to enter a neighbourhood that might otherwise be financially out of reach due to soaring property prices and steep mortgage rates. By purchasing a property in need of renovation, you can often acquire it at a considerably lower cost compared to its fully renovated counterparts in the vicinity. 

 

Depending on the property’s initial purchase price and its individual renovation requirements, it may make financial sense to buy an unrenovated property and invest your own resources, both in terms of money and effort to transform it. The goal is not only to bring it up to par with the other homes nearby, but to potentially exceed their market value.

 

Renovating a fixer-upper, especially focusing on key areas such as kitchens and bathrooms, can yield an immediate increase in its value. These are the rooms that potential buyers often scrutinise closely when looking at properties.

Is it cheaper to buy a fixer upper?

On a whole, yes — opting for a fixer upper in a neighbourhood characterised by higher property prices can be a more budget-friendly choice. The rationale behind this is that the estimated renovation expenses are factored into the house’s valuation, resulting in fixer upper homes being priced below the prevailing market value.

 

In practical terms, this means that fixer upper homes can be listed at prices up to 15% lower than their fully renovated counterparts. For instance, on a property valued at £250,0000 this translates to potential savings of up to £37,500. However, the real financial potential lies in your ability to transform the house to a higher standard.

 

We’ve witnessed instances where homes have sold up to 30% more than neighbouring properties purely because the owners invested in improvements such as constructing a driveway, adding an extension, or converting the loft. 

 

Such enhancements can deliver a return on investment that significantly surpasses the initial outlay – up to 45% or more. Even after accounting for reconstruction expenses, you could potentially find yourself looking at a profit margin of approximately £70,000.

 

Did you know that we don’t just sell properties, we can also help you buy houses too? Many of the properties that we help sell are in need of renovation, if this is something you want to get involved with then contact one of our team who will be able to help you in your journey.

Is it worth renovating a house before selling UK?

Renovating before selling a fixer-upper house is completely your choice, your house may sell in the blink of an eye no matter what you do. But, if you have hesitations about how fast you can sell your house, it may be worth weighing up the pros and cons of renovating your house before selling it.

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The best way of selling a fixer upper house

When faced with the prospect of selling a fixer upper house, the thought of starting an extensive renovation can be daunting. The good news is that you have alternatives – ways to sell your property without the need for a renovation project.

 

If you lack the time, inclination, or resources to transform your fixer-upper into a showcase home, there are several viable options to explore; via a house buying company, an auction house or the expertise of an estate agent.

Is it worth selling your house to a house buying company?

House buying companies, or sell house fast cash buying companies, specialise in purchasing properties in their current condition. These companies will typically have their own cash reserves and are experienced in dealing with fixer-uppers. 

 

They offer a convenient and swift solution for homeowners who want to sell without their burdensome renovation process. The advantage lies in the simplicity  and speed of the transaction as these companies are often ready to make cash offers, saving you time and effort. 

 

However, cash buyers purchase normal properties below market value, meaning properties that are in need of renovation may take a large hit (leaning towards the 15% – 20% below market value).

Is it worth selling a fixer upper house at an auction?

Selling a fixer-upper house at an auction can be an effective way to sell it without renovation. Auction houses provide a platform where potential buyers can bid on your property. Fixer-uppers often attract investors and individuals seeking unique opportunities. While your property’s sale price may vary depending on the level of interest it garners, auctions can offer a competitive environment that might result in a favourable sale. 

 

However, if you sell your property via an auction house there is a chance that your property will not sell at auction because potential bids do not meet your reserve price. This could mean that your house does not sell, and you’re left having to pay auction fees anyway.

Is it worth selling a fixer upper house to an estate agent?

Engaging in the services of a seasoned estate agent is a classic yet reliable method to sell your fixer-upper. These property experts possess a wealth of experience in marketing and selling properties of all conditions. 

 

A skilled estate agent can help you accurately price your home, market its potential and connect with prospective buyers who are open to the idea of taking on a renovation project. They can also negotiate on your behalf, ensuring that you get the best deal possible. 

 

However, finding prospective buyers who are interested in renovation property is quite niche, especially on the open market. Many property investors who are looking for these types of houses are looking off-market on property sourcing platforms. 

 

Moreover, estate agents work on large commission based fee structures of up to 3%+VAT, this could mean that if you sold your property for £225,000, you would pay up to £6750 worth of fees. 

 

Most estate agents will also fix you into a contract of 12 weeks or more, in which time you can only list your property with them. If they are unable to sell it within those 12 weeks, then you will be faced with estate agent fees and the struggle of having to find another estate agent to sell with.

Is it worth selling a fixer upper house to an online estate agent?

Selling a fixer-upper house with an online estate agent means that you can sell it completely online. They often work on a more competitive fee basis, when compared to high-street estate agents. This could range from a fixed fee of around £1,000 or 1% of the selling price. 

 

Online estate agents often provide a streamlined and convenient process for selling your home. You can manage your property listing on Zoopla and Rightmove, communicate with potential buyers online, and coordinate viewings that suit you.

 

Due to the online nature of the estate agents, they offer a broad online presence, being able to reach more potential buyers across the country, which puts more eyes on your property. This increased visibility can help attract more property renovation minded buyers. 

 

However, online estate agents are very hands-off when it comes to selling your property. They will make you do much of the grunt work, while taking in a commission or fixed fee for letting you use their platform. 

 

We’re not like that. We are The Property Selling Company, and we are an online estate agency that believes selling shouldn’t be complicated. 

 

We can sell your house in as little as 28 days, or on a timescale that suits you, all while getting you a selling price that meets your expectations. We will handle all the paperwork, marketing, conveyancing, negotiations and house viewings for you, all while making sure you are left in the loop at all times. 

 

Instead of asking for a commission or fixed fee for using our service, we will cover all the costs associated with selling a fixer upper property. 

 

Want to get started with selling your house today? Simply get in touch with one of our team below:

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Will Downsizing After Retirement Affect My Pension UK?

Will Downsizing After Retirement Affect My Pension UK?

Will Downsizing After Retirement Affect My Pension UK?

Looking at why people downsize for retirement, the pros and cons of downsizing in retirement and how we can help sell your house and boost your pension.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

Retirement can be a very exciting part of life. You finally get to stop working, take things a bit easier and enjoy the fruits of your labour, surrounded by your loved ones. One aspect of retirement that a lot of people decide to tackle is downsizing. By downsizing after retirement, people are able to ease the maintenance of their property, move into more accessible properties, as well as boosting their retirement fund.  

 

In this blog post we are going to look at downsizing after retirement, the pros and cons of downsizing, and answering the question ‘does selling my house affect my pension?’

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What is downsizing in retirement?

Downsizing is the process in which someone moves out of their family home in order to move into a smaller, cheaper property that they can grow old and retire in. People often move in order to save money, boost their retirement fund, and be closer to family, friends, and local amenities. 

 

Downsizing sounds as though you are moving to a smaller property, sometimes people will downsize to a cheaper house or flat to release equity in their current property. 

How to know when it's time to downsize? 

If you are thinking about downsizing after retirement but are unsure whether it is the correct move for you, then there may be warning signs popping up to tell you it may be a route you wish to explore:

If you are fast approaching your retirement, then you may have already given some thought to downsizing. It is a great way to help set yourself up for your retirement, especially if your current property has steadily risen in value over the last few years. 

If you have finally reached the milestone in every parent’s life that they both crave and dread in equal measure, then you may start thinking about selling up and moving to a smaller property. You may find that your family home feels quiet and empty now your children have left, and that moving yourself to a smaller property closer to family and friends may be the way to go. 

When walking around your property, you may begin to notice that you have more unused space than you do used space, then it could be time to consider downsizing. You may as well save your money rather than heating empty rooms. 

A great sign that downsizing is for you is that day-to-day maintenance of your home is becoming too much of a chore for you to complete on your own.  

Why do people downsize? 

There are many different reasons why you may be considering downsizing. Below are some of the most popular reasons people have for taking the plunge and moving to a smaller property: 

 

  • Want better amenities
  • Change in lifestyle/health 
  • Financial reasons 
  • Wish to be closer to family 
  • Looking for a better location 
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Should you want to rent or buy a smaller home?

When you are deciding to downsize, you will need to decide whether you will rent or purchase a new property. Below we take a closer look at the two housing options: 

Buying 

Buying a property is a long-term commitment no matter how old you are. If you are unsure about the property you are planning on purchasing, it may be a good idea to spend some time in the area and get to know whether the location and property type are compatible for you. You will also need to consider the extra costs you may have to face, such as: 

 

 

These costs can add up, so it is important to factor them into your budget. 

Renting

Depending on the property that you choose and the location that you move to, renting can work out as either more or less expensive. By avoiding maintenance costs you may find yourself saving money. However, it is less secure than owning your own home outright. If your landlord decides to sell up or increase your rental payments, you may find yourself in a tricky situation.  

Will selling my house affect my pension UK?

One of the biggest questions you may have when it comes to downsizing after retirement is ‘if i sell my house does it affect my pension’. The selling of your property should have no effect on your state pension as any capital that you have released from the sale of your home will only be relevant to your PensionCredit entitlement. This is because your State Pension is based on contributions and is not affected by any savings you may have. 

 

As far as your Pension Credit entitlement current legislation allows the DWP to ignore the proceeds you gain from a house sale for up to 26 weeks if you plan to use the proceeds to purchase another property. If you need to extend this period due to renovations then you may be able to do so. 

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Pros and cons of downsizing for retirement

As with any buying or selling decision, there are pros and cons to selling your current property for a smaller home. Below we take a close look at the advantages and disadvantages of moving to a smaller home for those who want to downsize…

Benefits of downsizing your home in retirement

One of the main reasons people wish to downsize is to increase their retirement income. Many people wish to sell house and retire to a smaller house close to family or friends. By moving into a smaller property, they should have cheaper bills and lower maintenance costs as well. It is also a means for people to move closer to family and friends, ensuring they have a good support network as they get older. 

 

It also means that you are able to keep your independence for longer. By moving into homes that are better suited for your needs as you get older, such as assisted living, sheltered housing, retirement properties and bungalows, you are able to keep your independence for longer.

 

Other positives to moving into a smaller property can be: 

 

  • it’s easier to maintain 
  • It’s closer to family and friends
  • It’s a way to get extra support and help as you get older 
  • It’s a more accessible property 

Cons of downsizing in retirement

However, when you downsize you may have to give up some of the luxuries you have grown accustomed to in your family home. For example, you may find that your new home: 

 

  • is further from shops, doctors, and leisure centres and facilities. If you have already given up driving, or think you may need to in the future, you will need to factor in how you will get about as well as visit people
  • is further away from your family and friends than you previously were 
  • smaller and with less space 

 

There is also an issue with people overestimating exactly how much their property is worth and not fully understanding the cost of moving. 

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At what age do most seniors downsize?

It is widely believed that the best age for most seniors to downsize is 64. This is according to data from Retirement Move, where half of those over 60  admitted that they struggle when it comes to the day-to-day maintenance of their property. Furthermore, a third of those asked could not keep up with maintaining their gardens. 

 

Although there is no right or wrong answer to this question, 64 tends to be the age that most people will start to consider the possibility of downsizing, although some may consider it earlier and others may decide to do it a little later. 

Inheritance tax implications 

You may also wish to look at how downsizing after retirement can affect any inheritance tax on your estate. The inheritance tax threshold currently stands at £350,000 but this number can increase if you decide to leave your home to your children or grandchildren by using the Residence nil rate band (RNRB). If you are concerned about your children and grandchildren being unable to use the full tax-free allowance, you may be bale to add a ‘downsizing addition’ to the RNRB. 

Is it worth downsizing to be mortgage free?

Becoming mortgage-free is a dream for most people, and those who are looking at downsizing for retirement are no exception. Downsizing is a great way to fund your retirement as well as helping you to achieve your goal of becoming mortgage-free, but is it worth it?

 

Downsizing can help you to achieve mortgage-free status if the remaining balance on your mortgage is less than the value between your current and new house. So if you currently have £110,000 left on your mortgage and the difference between your current home and your potential retirement home is greater than this number, then you will be able to pay off your mortgage. 

Will the council pay me to downsize?

If you live in a council house and have one or more spare bedrooms, then depending on your council you may be able to move to a smaller and cheaper property through a Smart Move scheme. Through this scheme, eligible people will be able to get up to £1,000 for each bedroom they give up in their property. 

 

In order to check your eligibility for the Smart Move Scheme, you will need to fill out an online housing application form from your local council’s website. 

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Can I sell my house and live off the money?

If you decide that you wish to downsize to fund your retirement, then this is a selling avenue that you can explore. Whilst selling can be a great way to boost your retirement fund unless you are in a property that has risen in value considerably and is worth a lot, you may struggle to live off the profits of you’re house sale alone. Retirement is a long time, and you don’t want to run out of profits and be left struggling. You may wish to explore releasing equity or working for longer in order to increase your savings. 

 

If you decide that you want to take the plunge and boost your savings for retirement, have a look through our checklist below to make sure you are ready to go: 

 

  • You should first look at your reasons for downsizing. Are you feeling positive about this change or are there other routes you would rather explore? 
  • If you decide that downsizing is a route you wish to go down, then you will need to start thinking about places you will want to move to. Do you want to stay close by or are you looking for a property that is further afield?
  • You will next need to think about the property type you wish to move into. Take a look at different property types, locations, and amenities nearby. 
  • You will also need to think about your mortgage. Do you plan on paying it off in full?
  • You will need to start decluttering as soon as you can. Not only do clean tidy homes sell quicker, but if you are downsizing you will not have the same space that you have in your current home. 

Should you move house when you retire?

Whether or not you should move house when you retire is a decision that only you can make. As a homeowner, it is a good idea to weigh up the pros and the cons of your move to decide if it is the right move for you. Downsizing is a big decision, and it is not one that should be rushed into. However, if you decide that it is an avenue that you wish to explore, then we may be able to help you get the ball rolling…

How can we help?

If you are looking to downsize your property, we are here to help. Whether you are looking to sell your current home to downsize or you are looking to purchase a new home to grow old in, we’ve got you covered. 

 

We are an estate agent with a difference, making it our mission to change the ways that you sell houses. In fact, we believe that selling your house should be three things: fast, effortless, and free. 

 

Whether you are buying or selling your home, The Property Selling Company is here. Our dedicated team of property experts are here to support you every step of the way, helping you sell your family home in as little as 28 days and get your downsizing journey underway.

 

If you are ready to downsize get in touch today by filling in one of our free no obligation online valuation forms! 

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Can You Sell a New Build After 6 Months or Even 1, 2 & 3 Years

new build housing estate

Can you sell a new build after 6 months or even 1, 2 & 3 years

Looking at how to sell a new build property, how you can sell this type of property and how we can help.

Sell your house in 28 days

WRITTEN BY: Alexandra Ventress ★ Digital Content Writer

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Can you sell a new build after 6 months or even 1, 2 & 3 years

Looking at how to sell a new build property, how you can sell this type of property and how we can help.

Sell your house in 28 days

WRITTEN BY: ALEXANDRA VENTRESS ★ Digital Content Writer

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Table of Contents

Selling a property can be a stressful time, With estate agents to go through, viewings to prepare for and host, as well as negotiations, it is easy to feel overwhelmed. And new build property sales are no different. 

 

On top of the stress that house sales bring, you may be wondering, can you sell a new build after 6 months, or even 1,2 & 3 years? 

 

In this blog post, we will be looking at when you can sell your new-build property, how to add value to your property and how we can help you sell a new build house in as little as 28 days…

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Why are new builds so overpriced?

The reason that new-build homes are often overpriced is because they are subject to the new build premium. This means that you end up paying 2.5 more than the median price for your property. You will often be charged this premium due to the following reasons: 

 

  • The property and everything inside it is new and unused
  • It will be more energy efficient than other properties 
  • The property is ready to move into 
  • It is ready to move into 
  • You will typically receive a guarantee of around 120 years or more with your property 

 

If you wish to avoid losing money over this premium, you can either make changes to your property that will help boost the value, or you can stay in your property long enough for house prices to rise and cover the difference. 

 

Another reason for a higher price tag on new build homes is due to the rising cost of construction and labour. Many new home developers make up the price for their properties in order to remain profitable. 

How soon can I sell a new build property?

In the UK, there is no legal time limit for how long you must own a home before you sell it. This means in theory you can sell a house as soon as you have bought it. However, there are a couple of pitfalls with doing this that you need to be wary of.

 

The first issue that you may come across is Early Repayment Charges (ERC). These are charges your lender may bill you for if you pay back your mortgage in full before the agreed length of time. This is done so your lender can recoup any lost interest. 

 

You may also find that your buyer may struggle to finance the property as lenders, banks, and building societies may view the quick turnaround as a risk. In order to avoid this, it is recommended you follow the 6 months rule…

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Should I sell my new build after 6 months of owning it?

If you want to sell a property quickly after purchasing it, most lenders will recommend you follow the 6-month rule. This is because the majority of lenders won’t lend against a property that has not been registered with the same owner for months with the Land Registry. 

 

By selling a new build after 6 months you are able to sidestep this rule, and hopefully get a faster sale as a result. 

Should I sell a new build property 1 year after buying?

If you decide to sell your home within a year, you may have to consider the financial implications of your sale. As we have already mentioned, there is no minimum time to own a home before you sell, however, there may be tax implications that come along with it. If you gain a profit from selling a property, then you may find yourself having to pay capital gains tax. 

 

When you complete a sale or dispose of an asset and have gained a profit from the transaction, you may have to pay CGT. If you are selling a new build home after a year, you have the potential to pay capital gains tax rates of up to 20%. If you sell your property less than a year after you originally purchased it, then the fee may be even bigger as it will be taxed at the same rate. 

Does a new build house value drop after 2 years?

When selling new build after 2 years, you may have heard that new-builds decrease in value after two years. This is due to a study done by the Financial Times, which said that new build properties can lose as much as 10% of their value in the following 7 years after they have been sold. Exactly how much your new-build will be devalued will depend upon the wider market, as well as the condition of your property and the popularity of your housing developer. 

 

However, you will be relieved to know that the majority of new build properties will not lose as much as 10% of their value and many will regain the value. 

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Do new builds get down valued?

When you are selling a new build house, your aim will be to make the most money possible from your sale. However, as with any house sale, you run the risk of your property being devalued. Below we take a look at some of the reasons why your newly built property may be devalued:  

Depreciation 

Unfortunately, one of the biggest issues new builds face is the depreciation of value.  Once you move into a new build, they are no longer new. This means that the premium you paid no means nothing, so your property has already decreased in value. Another issue you may face is supply vs. demand. Once you decide to sell your newly built property, you may be surrounded by others in the development that are exactly the same, meaning you may have to go lower to attract a buyer. 

Risks 

New builds are often built upon land that pose higher risks to lenders, despite the strict regulations that they adhere to. You may often find newly built housing developments near main roads, airports, landfill locations, and sewage sites. 

 

The locations of these developments will not only affect the property but will also make reselling at the original asking price a lot more difficult. 

Lender valuation

When a lender values a property, they will take into account a variety of factors in order to get the true market value of a property. This will unfortunately be a far cry from a developer’s asking price. 

Whilst a valuer will be looking at location, house size, and the potential resale value of the property, a developer will decide upon the asking price by looking at the cost to build, their materials and labour. 

What devalues a house valuation?

When it comes to selling a house, the aim of the game is to get the best price possible for your property. Because of this, before you put your property on the market you may wish to look inwards and see if anything could be holding you back. From poor maintenance to subsidence issues to even pets, you may have something in your home that is affecting the value of your new build and stopping you from achieving the best possible price…

Whilst there is certainly nothing wrong with undertaking a little DIY around the house, if it has been done poorly you may find yourself running into a couple of issues that run deeper than you may originally have realised. Small errors like poor paintwork and shoddy tiling can negatively affect the value of your home, however, they are fairly easy fixes. Bigger issues such as a poorly completed DIY renovation project may be harder to rectify and could hurt your valuation. 

Whilst having a property located near a main road can be great for commuting, however, the noise that it brings can be a real issue for potential buyers.  Thankfully, there are some steps you can take in order to soundproof your home, such as double-glazing your windows. 

If your curb appeal is not what it should be, then you may struggle to find yourself a buyer for your newly built property. First impressions matter and if your kerb appeal is not up to scratch, then you may end up suffering as a result. If you have a messy front garden. with very little going on for it, then it’s time to break out the lawn mower and a tin of paint. Repainting the front door can be a great way to brighten up a tired-looking house, as can simply mowing the lawn and planting fresh plants. 

As much as we love our pets, a sad fact of life is that not everyone is as crazy about them as we are. Pets in the property can put off potential buyers and can even cause damage to the property (think scratches in the paint) and cause odours to hang around. When having pictures of the property taken or conducting viewings, it may within your best interest to pop their bed and toys out of sight as well as having your carpets professionally cleaned. 

Energy efficiency is an issue that is quickly rising to the forefront for buyers. As a society, we are becoming more eco-conscious and buyers don’t want to spend a fortune on their energy bills. It is also now illegal to rent out a property with an EPC rating of less than an E. Thankfully, there are measures that you can take to help improve your energy efficiency. Steps such as replacing your boiler with a more energy-efficient option or replacing your boiler with a more energy-efficient option. 

If your home looks like it could do with a little TLC, then you may find this can negatively affect the value of your property. This means only chipped paint, faulty windows, worn carpets etc need sorting before you go on the market if you are looking to get the best price. If there are any jobs that you are not confident with, you should bring in a professional. 

How to add value when you sell a new build house

Now we have looked at some of the areas that may devalue your property, we will take a look at some of the ways that you can add value to your new build:

One of the best ways you can add value to your property is through decluttering. A clean home is a well cared for home, and by decluttering your home before viewings, you are setting yourself up to get the best possible price. It also helps your property to look both bigger and brighter. 

If your new build flat or property has single-glazed windows then you can upgrade to double-glazed. This will not only help your energy efficiency but it will also provide additional soundproofing and boost your value. 

Another simple way you can add value to your property is by undertaking any odd unfinished DIY jobs around the house. This means any leaks, unfished or wonky tiled walls, and any other botched DIY jobs need to be fixed before any viewings or pictures. According to research, people will often overestimate how much things will cost to repair, so buyers may be turned off when viewing your property and as a result may offer less for your home. 

Did you know that a clean home can add up to 5% on offers that potential buyers make? A clean home shows buyers that it is well looked after and this will appeal more to the majority of buyers than a home that has been neglected. 

If you are looking for ways to boost the value of your new-build property, then your garden may be a great place to start. Gardens are an excellent way to help boost your value and only require small changes to help raise the value of your home. Simply repainting tired fences, mowing the lawn, cleaning the patio and planting fresh flowers can all help. 

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Who should I sell my new build house to?

Who you sell your new-build property to is a decision that only you can make. The most popular routes when looking to sell your new build will typically be: house auction, cash buyer, and estate agent. As with any selling decision, there are pros and cons with each of these options Below we take a look at your options when it comes to selling property: 

House Auction 

A house selling route that is becoming increasingly popular is to sell your property through a proper y auction. An auction works by entering your property in the lot and agreeing on a minimum reserve price for your property. Should a buyer meet this minimum price, the property will sell. 

 

The best case scenario for auction is that multiple buyers will be interested in your property and will engage in a ‘bidding war’ and will raise your final profit. They are becoming increasingly popular due to the security that they bring. Once the gavel falls, the winning bet is legally binding and the winning bidder cannot pull out of the sale without facing financial penalties. 

 

However, you are not guaranteed a sale when you sell through an auction. They can also be time-consuming, meaning that if you are looking for a quick sale they are less than ideal. On top of this, selling at auction is not without cost, as auctioneers charge fees in order to cover the cost of marketing sand selling your home, which will eat into your final profit.  

Cash Buyer 

If you are looking for an alternative route house sale route, then you may be interested in selling through a cash buyer. A cash buyer is a group or person who is able to purchase your property without the need for a loan or mortgage. They can buy your property in a time scale that suits you, helping to give you security that can be hard to find on the open market. 

 

They are also able to purchase your property quickly and usually without hassle as if they are a genuine buyer, they will have the funds readily available. 

 

However, if you decide to sell with a cash buyer you should be careful to make sure they are a part of a regulatory board such as The Property Ombudsman and The National Association of Property Buyers. You will also not get 100% market value for your property, however, in exchange for this you get a fast sale.  

  

Estate Agent 

Another great way to sell your new build home fast is through an estate agent. A big advantage of selling through an estate agent is that they will undertake the hard work of the sale for you, organising viewings, writing listings, and helping with negotiations. However, depending on who you sell your property with, you can spend months waiting on the open market. If you are looking for a way to sell your house fast without the estate agent fees, read on…

How can I sell my new build house?

When it comes to selling a new-build house, you may find that selling can be difficult. Finding a buyer, hosting viewings, and dealing with solicitors can all take their toll and add unnecessary stress to your house-selling journey. 

 

But it doesn’t need to be that way. 

 

We are The Property Selling Company, and we believe that selling a house shouldn’t be complicated. In fact, we believe that it should only be three things; fast, effortless, and free. 

 

That’s why we have made it our mission to change the way you feel about selling your house. Instead of forking out for expensive legal bills and estate agents fees, we cover it for you, it’s just one of the ways we take the stress out of selling. 

 

Our dedicated team of property experts are by your side throughout every step of the house-selling journey, helping you to sell your new build property in as little as 28 days. 

 

So if you are ready to sell your new build property and kickstart your selling journey, get in touch today by filling out one of our free no-obligation valuation forms or simply give us a ring! 

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The best & fastest property selling companies 2024

best property selling companies

The best & fastest property selling companies 2024

Do you have a property for sale? Find out who the best property selling companies are.

Sell your house in 28 days

WRITTEN BY: tom condon ★ Digital Content Writer

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The best & fastest property selling companies 2024

Do you have a property for sale? Find out who the best property selling companies are.

Sell your house in 28 days

WRITTEN BY: tom condon ★ Digital Content Writer

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Table of Contents

Welcome to our best & fastest property selling companies comparison. We will be looking at what is a property selling company, how they work and what options are available.

What is a property selling company?

A property selling company plays a pivotal role in the housing market in 2024.

Property selling companies are transforming the dynamics of the housing market, introducing innovative approaches that could potentially save homeowners thousands of pounds.

 

They specialise in selling properties including houses, flats, maisonettes, and more. These companies tend to act as intermediaries between home owners (also known as vendors) and potential buyers.

 

Property selling companies are also known as hybrid or online estate agents, and often offer valuable guidance to sellers on how to make their property more attractive to potential buyers, without being in a physical office. 

 

However, the question that often arises is whether they outperform traditional estate agents in terms of speed and value. 

 

The reality is that each online estate agency offers a slightly different basic package, but the fundamental concept remains consistent amongst most: when you opt for an online estate agency, you take on the role of selling your own home through an online platform.

 

At The Property Selling Company we will handle the entire marketing and selling process for you, creating a fast, effortless and free service.

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How do property selling companies differ from a high street estate agent?

One of the primary functions of a property selling company is to assist homeowners who wish to sell their house. When you decide to sell your house, you can engage the services of a property selling company to help you navigate the intricate steps involved in the sale. 

 

These companies often employ regional representatives who are trained and experienced in the art of property sales. 

 

Property selling companies typically operate entirely online, with a regional or national presence. They often focus on providing a streamlined and digital experience for both sellers and buyers. Property selling companies often leverage technology and data analytics to enhance their offering.

 

They tend to be website, social media and online listing focussed, with digital marketing teams ensuring they remain visible across the internet. Depending on the company, they may also offer virtual tours to showcase properties. 

 

Due to the high-competition nature of the online estate agency market, they tend to offer competitive rates which are lower than estate agent fees. 

 

High street estate agents are traditional brick and mortar agencies with physical offices who offer face-to-face interactions and local expertise. They tend to solely rely on traditional marketing like brochures, window displays and word of mouth and will have a strong presence in local communities. 

 

High street estate agents typically charge a commission based on the percentage of the selling price, which can vary from 1% to 4%+VAT, depending on the firm.

Are property selling companies the same as property buying companies?

Home buying companies, or cash house buyers in the UK tend to buy houses with cash for below market value. Whereas property selling companies help vendors sell properties for full market value, over longer periods of time.

 

Because cash house buying companies have the funds available to purchase and don’t rely on mortgage approval, they can buy any house in very short periods of time — often around 7 to 14 days. The short time frames help to increase the chances of a guaranteed sale.

 

Cash property buying companies are also not fussy on the type of properties they will buy, as they are often buying houses to be sold onto investors. This means that they will buy commercial property, tenant property, residential or development opportunities. 

 

Property selling companies on the other hand are often acting as intermediaries between vendors and buyers, and so are reliant on mortgage approvals which can dramatically reduce the speed of sale. 

 

Although some house selling companies will be able to sell commercial property, most tend to sway towards residential homes. Property selling companies will also be able to get a better offer price than home buying companies, allowing the vendor to walk away with more money in their pocket.

How do property selling companies work?

The journey of selling a property with a property selling company often begins with a house valuation conducted by the company. This initial valuation helps determine the fair market value of the property, ensuring that the property is appropriately priced for sale. 

 

A well-established property selling company leverages market trends and comparable sales data to arrive at an accurate valuation. 

 

Once the property’s value has been determined, the company takes on the task of marketing the property to potential buyers. This involves various activities such as creating listings, staging the property and utilising digital and traditional marketing channels to attract interested parties. 

 

Throughout the entire process, the property selling company acts as a liaison between seller and buyer, facilitating negotiations, handling paperwork and ensuring that all legal and financial aspects of the sale are properly managed. This expertise is particularly important in 2024, as the property market continues to be turbulent.

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How can I sell my house fast for a good price?

In order to sell your house fast for a good price, you may wish to explore using online estate agents or property selling companies. These businesses offer a streamlined process that can help you reach potential buyers quickly. 

 

They use websites like Rightmove and Zoopla to provide extensive exposure for your property, attracting a wide range of potential buyers. Most online estate agents offer faster selling times than standard high street estate agents due to their completely streamlined process, all while being able to negotiate a higher offer than a cash buyer would. 

Will someone buy my house for cash?

If you prefer to have your property sold for cash, utilising an online estate agent provides the flexibility to exclusively entertain cash offers from potential buyers. 

 

Conversely, if you are not inclined towards a cash offer, you can specify your preference for non-cash offers. The property selling company you select will help you manage these preferences seamlessly during the selling process.

Do I need a solicitor to sell my house?

While strongly advised, it is not legally mandatory to instruct a solicitor to handle the conveyancing process during a house sale. This approach is often referred to as DIY conveyancing and can potentially yield significant cost savings. 

However, it comes with inherent risks. In the event of any complications or errors, you could find yourself subject to fines or even legal proceedings.

Do you pay tax on selling a house?

When you sell a house, you may be liable to pay Capital Gains Tax (CGT). The current CGT rate is 20% for individuals falling within the basic rate taxpayer category, and it increases to 28% for those classified as higher or additional rate taxpayers.

Who are the best property selling companies?

While there are many dominating online estate agents, there is a rise of property selling companies whose goal is to challenge the industry. These alternatives to cash buyers, house auctions and high street estate agents allow you far more flexibility when it comes to selling.

1. The Property Selling Company

We are The Property Selling Company, and our commitment to you goes beyond the ordinary to ensure a swift and hassle-free sale of your home. We firmly believe that selling your property shouldn’t be complicated. In choosing us, you’ll experience a seamless, improved service that sets us apart from traditional high street estate agents.

 

At every step of the way, you’ll find yourself in capable hands, benefiting from a range of services that covers everything from floor plans and professional photography to compelling property write-ups and house viewings. We will even take care of your legal fees, leaving no stone unturned in our quest to simplify your selling journey. 

 

At the core of our company, lies our unwavering commitment to honesty and transparency in our customer service. We don’t just sell properties; we build lasting relationships by exceeding your expectations.

  • Marketing (floor plans, photography etc)
  • Property listing (Zoopla, Rightmove)
  • House viewings & open days
  • Sales progressions
  • Legal fees
  • Help negotiating onwards purchases

 

The landscape of property sales evolved, thanks to the internet and shifting trends in homeownership. Now, selling your house can be tailored to your terms, budget and objectives. With us, you’re not just a vendor; you’re an active participant in a process that we make refreshingly uncomplicated.

 

If you are already with an estate agent, then why not switch to The Property Selling Company? We can help you sell far faster.

Following house valuations, we’ll explore your desired selling price for the property. It’s important to note that we are committed to meeting this figure, regardless of the ups and downs during the house sale. Your satisfaction and financial expectations are paramount to us.

 

If, during the sale process, your property fetches for a selling price higher than the initially agreed upon amount, any surplus beyond your set target becomes our source of profit from the sale. 

 

Our business model ensures that you receive the full amount you sought, and we can stay in business. It’s a win-win scenario that underscores our commitment to transparency and putting your interests at the forefront of our company.

Our motto is ‘Fast. Effortless. Free’ We are dedicated to making your selling experience as convenient and stress-free as possible. Whether your property is situated anywhere in the United Kingdom, count on us to sell it efficiently. 

 

We stand apart from the traditional estate agent crowd with our transparent customer service. As a modern house selling solution, we are committed to streamlining your journey with us. We proudly assert our ability to sell your home within 28 days, powered by our listings on Rightmove and Zoopla, platforms trusted by 98% of potential buyers. 

 

We also take pride in our commitment to industry standards and regulations. As proud members of the National Association of Property Buyers and The Property Ombudsman, we adhere to their code of conduct and uphold the highest standards of integrity.

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2. Strike

Strike logo

Strike is an emerging property selling company and online estate agent, who proudly holds the title of “the fastest growing estate agent in the UK.” Their core ethos revolves around being transparent, empowering, collaborative and digital. 

 

At Strike, they firmly believe that you should be in control of your house sale, and they are here to help you on that journey.

 

At the heart of Strike’s approach is a belief in putting you in the driver’s seat of your property sale. They’ve built their reputation on a commitment to transparency, ensuring that you have a clear understanding of every step in the process. They empower you to make informed decisions, collaborate with you to achieve your goals and leverage the digital landscape to make the experience seamless.

  • House valuations.
  • Property listing on property portals.
  • App that allows communication to potential buyers.
  • Negotiations.

Strike’s operating model centres on a basic package that is accessible to everyone at no cost. However they understand that the complexities of the housing market may require additional services. 

Should you choose to need mortgage assistance, conveyancing or moving services, these can be added (with a fee) as additional options to tailor your experience.

  • Photography & floor plans – £599
  • Virtual tour, Facebook boost campaign and premium Rightmove listing upgrade – £100
  • EPC – £90
  • Hosted viewings – £799
  • Listing upgrade with enhanced photos & custom video – £699.

Strike’s track record speaks volumes. In 2021, they achieved an impressive milestone by their property sales exceeding £5.02 billion since they began. This vast platform ensures that your property gains maximum exposure, attracting potential buyers from a wider spectrum of the market.

 

Strike are also a proud member of The Property Ombudsman, underscoring their commitment to upholding industry standards and adhering to regulations. This affiliation ensures that you receive service that aligns with the highest industry ethics, giving you peace of mind throughout your property-selling journey.

3. Purplebricks

Purple bricks logo

Purplebricks stands as a first mover and prominent brand within the online estate agencies world, renowned for its strong brand reputation and widespread recognition. A notable development in the housing industry saw Purplebricks recently being acquired by Strike for a mere £1. 

 

One of Purplebricks distinguishing features is its potential to yield substantial cost savings in comparison to the traditional high street estate agents. With their approach, Purplebricks revolutionised the online property selling market, putting the seller at the forefront of the selling experience.

  • Local property expert
  • Marketing (floorplans, photography, write-ups)
  • Property listing on Rightmove & Zoopla
  • UK-based support team.

 

Purplebricks presents sellers with a choice between two distinct packages tailored to cater to varying needs and preferences: the classic and the pro packages. 

 

The pro package, priced at £1,699 stands as the ultimate Purplebricks house selling offering. It includes all the features within the classic package, but also includes accompanied viewings, and an interactive 3D tour of the property.

 

While the pro package adds a level of exceptional marketing ability, it’s important to note that should you wish to seek conveyancing services, this would entail an extra fee. Conveyancing plays a major role in the property selling process, facilitating the legal transfer of property ownership.

Purplebricks boasts a well-established and widely recognised brand, a key factor that encourages trust amongst prospective buyers. Their commitment to fixed-fee pricing ensures absolute transparency throughout the entire transaction, granting you the peace of mind of knowing exactly how much you will pay.

 

The online estate agency operates around the clock, 24/7, ensuring that continuous accessibility is completed by an online account management system, placing the power of managing your property sale at your fingertips.

 

The overwhelmingly positive feedback from their past customers also speaks volumes about their dedication to customer satisfaction. Impressively, over 90% of their customers have rated their experience as “Great” or “Excellent”.

4. Sold.co.uk

Sold proudly states that they are the fastest online estate agency in the UK, distinguished by a 30 day contract and an ambitious 27 day selling timeframe. 

 

Beyond their standard services, Sold also features a cash buying branch, operating much like a property buying company, with the ability to sell house fast in as little as seven days, albeit at a price slightly below market value.

  • Instant valuation
  • Marketing (floor plans, photos & viewings)
  • Outreach to pre-qualified buyers

As with most other leading online estate agents, Sold is trusted by home sellers seeking to streamline their property transactions. Their performance is reflected on platforms like Trustpilot, where satisfied clients have shared their positive experiences. 

 

Sold offers a versatile solution for property sellers, managing transactions for a wide range of property values spanning from £5,000 to £2,000,000. They do so by leveraging their investor and buying services, connecting sellers to pre-approved buyers who are ready to engage in property transactions.

Who is the best company to sell your house with?

Based on the data below, if a quick sale with no additional costs is your top priority, The Property Selling Company is a strong contender. As we offer a completely free service, with a short contract time and fast time to sell.

Property selling companyContract time (est)Time to sell (average)Fees
The Property Selling Company28 days28 days£0
Sold.co.uk30 days27 days£0
Strike91 days182 daysUp to £2,287 in additional extras
Purplebricks84 days182 daysClassic package (£999), Pro package (£1,699) + up to £1,614 in additional extras

What to look out for when using property selling companies

When in search of a reliable property selling company, there are a few things you will need to look out for:

Reputable property selling companies often boast a lot of reviews on platforms like Trustpilot or Google. These reviews should ideally be verified to confirm they are from genuine customers as these provide valuable insights into the company’s track record and customer satisfaction. It’s important to seek verified reviews as some businesses may attempt to improve their rankings with fake feedback.

The best property selling companies will prioritise the protection of their vendors. You should check if they are members of the National Association of Property Buyers and The Property Ombudsman. 

 

Membership within these bodies signifies a commitment to following specific rules that ensure fair treatment for sellers. In case of any disputes, homeowners have the assurance of being able to file complaints with The Property Ombudsman and seek compensation if the company is found to have violated their code of conduct.

You should exercise caution when selecting a house selling company and be wary of those prone to overpromising. Some companies may be tempted to claim they can sell your house at a low price while introducing additional but necessary packages, a combination that is neither achievable nor truthful. 

 

Steer clear of companies making promises that seem too good to be true, as they often are. Trust is compromised when a company resorts to making false promises.

You should verify that the company you choose is a genuine property selling service. Some companies may assert that they will sell your house on the open market but, in reality, simply pass your property to their database of investors.

 

While off-market options can be viable, a reputable company should prioritise marketing your property on the open market to ensure you get the best possible price.

Should you sell your home to a property selling company?

Yes! Free property selling companies can be very worthwhile, but it’s always worth checking exactly what you get for free. When it comes to all the different property selling companies, it will depend on your circumstances and priorities. 

 

Property selling companies can offer quick sales, convenience and the potential to avoid some of the complications of the traditional property market. Which can be appealing if you need to sell your house urgently or want a streamlined process. 

 

However, it’s essential to carefully consider the trade-offs, including the possibility of selling your property at a price slightly below market value and any fees associated with the sale. 

 

Additionally, you should thoroughly research and vet the property selling company to ensure they are reputable and transparent in their dealings. 

 

If you are in search of a property selling company that unwaveringly prioritises both speed of sale, The Property Selling Company stands as an excellent choice. We specialise in fast property transactions without the burden of additional fees or hassle.

 

For those seeking to sell their house quickly, you’ve come to the right place. Our streamlined process can help you sell your home in as little as 28 days, delivering a price that will leave you more than satisfied. With access to prominent property portals such as Rightmove and Zoopla, your property will gain exposure to over 98% of online home buyers in the United Kingdom.

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Do I Pay Capital Gains Tax on Inherited Property When Selling?

Do I Pay Capital Gains Tax on Inherited Property When Selling?

Looking at the tax implications when selling inherited property, whether you pay inheritance tax on inherit a property.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

Inheriting a house can mean lots of different things for lots of different people. It can be a time of sadness, stress, and emotion. However, you can also find yourself on the receiving end of a lot of different taxes, from inheritance to income and capital gains. 

 

In this blog post we are going to have a look at the different types of taxes involved with selling a house, how to sell an inherited home, and aim to answer the question “Do I pay capital gains tax on inherited property when selling?”

 

Looking for a quick answer? Check out the interactive menu on the left-hand side. 

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What tax to pay on an inherited property?

When you inherit a property, you may find yourself facing several different types of taxes. Some of the most common ones you may find yourself dealing with are: 

If you sell the inherited property, then you may have to pay capital gains tax. 

Should the combined value of the deceased estate (property, savings, shares, etc.) be more than £325,000 then it will be due, however, there are certain circumstances where this would not apply. 

If the property that you have inherited is a buy-to-let or a holiday let, then you will need to start paying income tax once you start receiving income from rent. 

Below we take a closer look at some of the tax on an inherited property… 

Capital Gains Tax

Capital Gains Tax (CGT) is a tax that you will only need to pay if you decide to sell the property. Should the property have increased in value from the date that you first inherited it, you may be due to pay it on the rise in value (the profit). 

 

If you are a basic rate income taxpayer, then CGT will be levied at 18% on gains from residential property. This rate will rise to 28% if you are a higher or additional rate taxpayer. 

 

Everyone gets an annual CGT allowance, which is £6,000 per person for the tax year for 2023/24. However, this amount will be cut to £3,000 per person for the 2024/25 tax year. 

 

Unless you have used up your capital gains tax on an inherited property will not be due if the profit is less than £6,000. This is the amount of profit you can make from selling taxable assets (including property that is not your main residence) before CGT is due to be paid. 

 

If you decide to move into the inherited property and make it your main residence, then you will not owe any capital gains tax when you sell it. 

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Inheritance Tax

Whether or not you will be liable to pay inheritance tax will depend upon the value of the deceased’s estate. As a rule of thumb, if the total estate is worth more than £325,000 then 40% of everything over that amount will need to be paid in tax. 

 

However, there are some exceptions to this rule. If you have inherited your parents or grandparents’ property, you are a direct decedent and may be entitled to have some of this bill reduced. 

 

The main residence nil-rate band is £175,000 for the tax year 2023/24. This allowance is then added onto the main inheritance tax nil-rate band of £325,000. You could be able to inherit a property worth up to £500,000 without having to pay the tax, depending on the value of the estate. 

 

If you inherit your property from a dead spouse or partner, then there will be no inheritance tax to pay. There are allowances can also be passed between spouses or civil partners. This means that in the unfortunate circumstances that one of your parents or grandparents has died but they have not used their tax allowances, then you may be able to inherit an even more valuable property tax-free. 

 

An example of this would be if both of your parents have died, and the first to die passed all of their assets to the surviving spouse, when that spouse dies they can pass on a property worth up to £1,000,000 to their children or grandchildren tax-free.

 

You have 6 months after a person’s death to pay tax which should be settled by the executors of the estate. You should be able to pay the tax in monthly instalments if you wish, which should help to avoid a situation where in order to settle the bill you would need to sell the property. 

Income Tax

Income tax is not a tax you will have to worry about paying when it comes to inherited property unless you start earning an income from it.  If you rent out your property and receive rent, then you will need to declare this on a self-assessed tax return. Income tax will be due at your marginal rate, which will then be dependent on your total income for the year. 

How long do I have to live in an inherited house to avoid Capital Gains Tax?

When you inherit a home, you are left with a few options. You can rent it, sell it, or live in it. If you decide to rent it out, you will need to be aware that you will have to pay income tax, as well as capital gains tax when the time comes to sell the property, if it has risen in value. 

 

If you decide to live in the property, then you will not have to pay CGT, as long as it is your main residence. This means if you already have a property, then you will need to sell it and move into the inherited home. 

 

If you decide to sell the property and there is no rise in value during that time, then you may be able to avoid CGT. Similarly, if there has been rise of £6,000 or less and you have not used up your annual tax allowance for that tax year, then you may be able to avoid CGT. 

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How much is Capital Gains Tax?

Exactly how much you will pay in CGT will depend on a variety of different factors involving both you and the asset. 

 

An example of this would be:

 

  • The type of asset 
  • How long you have owned the asset 
  • Your tax situation 
  • The core value of the asset

How to work out capital gains tax to pay

When it comes to working out how much Capital Gains Tax you have to pay, you will first need to work out what band of taxpayer you are. 

 

Your next step should be to figure out your taxable gains, which is the amount of money you will have made after deducting any allowable losses. 

 

Next, you should take away the CGT tax-free allowance, and you will now be left with a sum that is subject to CGT. 

 

An example of this would be: 

 

Taxable gain = £20,000 Allowable losses: £3,000

 

Calculate the total taxable gain: 

 

£20,000 – £3,000 = £18,000

 

CGT tax-free allowance + £6,000

 

Calculate the amount subject to CGT: 

 

£18,000 – £6,000 = £12,000

 

Once you have worked out the taxable amount, you can now work out what percentage of CGT you are liable to pay. 

BandTaxable incomeCGT rate for residential
Personal allowanceUnder £12,5700%
Basic rate£12,571 - £50,27018%
Higher rate£50,271 - £125,14028%
Additional rate£125,140+28%

What tax rate am i? 

Amount subject to CGT: £12,000

 

Your annual income: £30,000

 

Taxpayer: £12,000 + £30,000 = £42,000 (Basic rate – 20%) 

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Do I have to pay Inheritance Tax on my parents house?

Typically, there will be no tax to pay if: 

 

  • Your estate’s value is below the £325,000 threshold 
  • Everything above the tax threshold is left to an exempt beneficiary, such as a community club or a charity 
  • Everything above the threshold is left to a spouse or a civil partner 
  • If you give your home away your property to your children or grandchildren your threshold can increase to £500,000

 

If your estate has been valued and is above the £325,000 threshold, then the part of your estate above this may be liable for tax at the rate of 40%.

Can I give my house to my son to avoid Inheritance Tax?

Yes, you can! There are many ways that you can do this, however the most common is to gift property by way of “transfer for nil consideration” or a “deed of gift”, as it is commonly known). This is often done as a way to help reduce the amount of inheritance tax they need to pay. 

 

In order for your child to receive the property tax-free, they would need to be in possession of it for 7 years before you die. For every year they own the property, the amount of tax they would be liable to pay tapers off. Below is a graph showing the reduction of tax: 

Years between gift and deathTax paid
Fewer than 340%
3 to 432%
4 to 524%
5 to 616%
6 to 78%
7 or more0%

Are there any conditions to meet before gifting a property? 

Before you will be able to gift your property to your child, you must first meet the following criteria: 

 

  • Be listed as the owner of the property with HM Land Registry 
  • Be of sound mind 
  • Be under no pressure 
  • Have no outstanding mortgage 
  • There is no charge against the property 
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How much can you inherit from your parents without paying taxes UK?

As we have already mentioned, there is a set amount that you can inherit before you will have to pay tax based on inheritance. The most you will be able to inherit before you will need to pay tax is any property worth £325,000 or less.  Any more than that and you will need to pay inheritance tax. 

What is the most you can inherit without paying taxes?

The exact amount that you will inherit depends upon a wide variety of factors, however, as a rule of thumb you can expect to inherit an estate worth £325,000 or less. 

 

The table below shows the most that you can potentially inherit without paying taxes. 

Tax yearNil-rate band (£)Residence nil rate band (£)Total for individuals (£)Total for couples (£)
2022/2023325,000175,000500,0001,000,000

How to sell an inherited property

When it comes to selling an inherited property, the first thing you will need to do first is to clear the property of its contents. You need to sort through the items and decide what you wish to keep, and what you will either donate to charity or throw away. 

 

If you don’t wish to face clearing out the house or you are too busy, then you could consider moving the items into storage. 

 

You may want to consider doing up the property before you sell it, depending on the condition it is in. This is because often properties owned by older people tend to look a little dated and giving it a quick facelift can be a good way to add some extra value to the property. 

The property is then ready to go on the market! You can start looking for estate agents to market your property. 

 

Selling an inherited property can be an overwhelming experience and one that is often stressful and time-consuming. But it doesn’t have to be. If you have an inherited property that you are looking to sell, then The Property Selling Company is here to help. 

 

We believe that a house sale should be three things: fast, effortless, and free. We have made it our mission to change the way you sell houses, which is why you can say goodbye to the days of waiting around on the open market, racking up expensive legal and estate agent bills. 

 

Our dedicated team of property experts are here to take care of everything and work alongside you throughout every step of the selling process. We take the stress out of property sales, helping you sell your inherited property in as little as 28 days and without the fees. 

 

If you are ready to sell an inherited property, get in touch with us today or fill in one of our free online valuation forms!

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