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Sunday April 21, 2019

Divesting tenanted investment property - best exit strategy?

I have a small B2L portfolio and wish to divest, as the properties are mortgaged ideally I want to sell them as tenanted investments. Whats the best method of sale?

Asked on Jul 29 2013, Selling in Beccles | Report content

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  • I would recommend that you consider auction as your chosen sales divestment strategy. There are a number of reasons for this and I’ll endeavour to cover these here. • Speed & certainty – auction provides speed and a higher degree of sales certainty that selling by private treaty, for instance Auction House UK average success rate across its network of 31 regional auction rooms so far in 2013 in 81% • Relevant buyers – Investing landlords often seek out regional auction rooms from which to acquire property. Indeed at Auction House UK we are seeing a marketed increase of tenanted lots going under the hammer • Selling with tenants in situ – with auction the property can be sold tenanted therefore there is no need for the landlord to serve notice and suffer void periods meaning the divesting landlord can earn rent revenue right up until the point of completion. • The ability to lot lots and provides options – this provides the divesting landlord the ability to group properties as a single lot or alternatively provide a purchasing options cascade. • Investing purchasers via auction will have undertaken their due diligence and have funds arranged prior to bidding at the auction, in other words they know what they are buying and are fully committed at the fall of the hammer • Properties view better if they are being lived in. Vacant properties show up decoration and maintenance issues

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    Answered on Jul 29 2013, Report content
  • Two good routes to selling tenanted properties: 1) Talk to a local letting agent - they will have a client base of local landlords that may be interested in expanding their portfolio. You might not get the best price because it will effectively be an off market sale. 2) The other route is to sell through auction. There is a strong demand for tenant properties at auction and you will usually expect to achieve a fair price.

    Answered on Apr 7 2017, Report content

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