If you’ve already decided to sell your portfolio of investment or rental properties you will be thinking about the best way to do that. On the one hand, you may be looking for ease of disposal and speed, but on the other, your investment property portfolio has taken time and money to build up, and you want the best price. It’s a question of balance, and priorities. Should you sell everything to a single portfolio buyer at a knock-down price, or would you be better off selling at a slower pace in parcels to multiple buyers? What if you could find a single investment portfolio buyer and a good price?
Considering the historical popularity of buy to let investment in the UK, and the Section 24 tax changes, it’s surprising to find a lack of clear information about how to sell an established buy to let portfolio.
Here are some questions you may want to consider:
Selling your property portfolio at the right place and on terms that work for you depends hugely on finding the right buyer. Let’s briefly consider some choices here.
Despite all of the recent changes around investment property, there are landlords looking to expand their portfolios. Selling to another landlord can make the process easier than selling to individual buyers. They may not be as exacting when it comes to the condition of the property, and they will often take on the portfolio with tenants in place. Of course, other property professionals are likely to be looking for a ‘trade price’.
There is another factor to consider. From September 2017 mortgage lending to landlords with more than 4 properties is likely to be handled by fewer UK mortgage companies. In November 2016 a number of publications raised the issue and you can read more about it here.
What this means for landlord buyers hoping to buy with conventional buy to let mortgages is that they may be hampered in their efforts to grow their property portfolios. This could reduce the number of potential landlord buyers.
Although we at Sell My Property Portfolio are experienced landlords, we do not need to rely on mortgage finance to buy your portfolio.
There is a shortage of social housing in the UK, which means it may be worth talking with housing associations and local authorities about your portfolio. Don’t dismiss the idea if your rental properties are tenanted as these potential buyers can cope with fully tenanted properties.
That having been said, you may want to consider this wealth warning: local authorities and housing associations will be operating under tight budgets, so your offer may be considerably lower than it could be otherwise.
Although we at Sell My Property Portfolio are always looking to buy rental property portfolios at a sensible price, we are not limited by a tight budget and can pay more.
The auction route can introduce some certainty – which for many is key. Other advantages of selling in this way are; speed, a fixed purchase price (once the winning bid has been accepted) and the leverage of connections the auction houses have with investors and landlords. The aim of the auction house is to introduce you to a single buyer who is willing and able to complete the sale quickly at a price your find acceptable.
There are also some negative factors to consider such as ‘open days’ (the price achieved may be lower without them) and auction house fees to pay. Three out of four lots sold is considered a good result for auction house portfolio sales… but what about the 1 in 4 that stays on the shelf?
Here at Sell My Property Portfolio we offer a sale with all of the advantages of the auction house, without charging any fees. We are not sales agents, but experienced investors and landlords. Why not consider coming direct to us first, to see how we can buy your rental properties?
As you’ve already decided to sell your portfolio of investment or rental properties you want to find the best way to do that. On the one hand, you want ease and speed, but on the other, you want the best price. It’s a question of balance. The good news is that you can sell at the pace and price you want to a single portfolio buyer. We would like to buy your portfolio and can make a firm offer in 7 days. Please get in touch with us now by using the contact form here, or just call.
Cherie Booth (her professional name, better known as Cherie Blair) announced in 2016 the launch of a legal battle to protect UK landlords’ human rights. The Chancellor George Osborne is infringing the human rights of Britain’s landlords with a planned tax change, she said. More recently her case was dismissed as one that was ‘bound to fail.’ Let’s take a look at some of the background and what the results mean for landlords with leveraged portfolios.
In his 2015 Summer Budget Osborne announced his intention to stop small landlords deducting mortgage interest costs from their rental income before calculating taxable profits. His motivation? To create a level playing field for residential homeowners and buy-to-let investors.
Landlords will no longer be able to claim interest as a business expense. Instead, they can claim a flat-rate 20 per cent rebate. This has the effect of halving the tax relief for higher rate taxpayers. The plan has dismayed buy-to-let investors because of the probability they will be paying much more tax on their investments.
Her key argument was that the proposed tax plan “discriminates against individual buy-to-let investors by denying them the same rights as other business owners,” says Richard Dyson of the Telegraph.
The legal argument claims that not allowing people to deduct mortgage interest before they calculate their profits “overturns a fundamental business principle where income less costs equals profit.”
At present landlords can claim monthly interest payments on their mortgages across a property portfolio as a business expense. But under the new scheme they will only be allowed a 20 per cent tax credit for mortgage interest, with serious implications for profit.
As an example if a buy-to-let property in your portfolio earns an income of £10,000 a year but you paid £8,000 interest then income tax would be due on £2,000 profit. If your income tax band is 40 per cent then you would owe £800.
Under the new rules you would owe tax on the £10,000, and could only claim a 20 per cent tax relief on the mortgage interest. Whilst lower rate taxpayers will pay the same in tax, higher and additional rate taxpayers will pay more.
The tax rate will now be calculated before the relief is deducted, so more landlords will find themselves in the higher rate tax-band.
Timothy Brennan QC, representing HM Revenue & Customs and the Treasury, said Booth’s claim was unarguable, adding: “There are cases which justify the courts looking at them in the public interest. This is not one of them.”
Speaking outside the court after the verdict, Booth said: “We will continue to engage with the government to make sure that the message comes over about the inherent unfairness of this tax. It’s not over yet.”
There continues to be considerable opposition from landlords across the country to a tax that appears to them to be fundamentally unfair. Watch this space.
One way of avoiding a potential investment income tax hike is to sell your property portfolio. We are actively acquiring property portfolios of all sizes and would like to talk if you are thinking of selling your property portfolio. Even if you believed you were stuck and could not achieve the price or result you need, we can help. Please drop us a line using the contact form here.
Nikki came to us in the middle of 2015 with a portfolio of 4. She knew we specialised in buying problem portfolios, and wanted to test us out. The properties she brought us must have been the four ugly ducklings of property investment…One needed a complete refurbishment, another had a huge monthly mortgage and there was a solid case of negative equity with minimal cashflow…
After some discussion and a preliminary, ugly offer for the four ducklings, Nikki confessed to a much larger property portfolio and put most of it on the table. Now we had 15 properties to consider, with a geographic spread of 300 miles. This was much more interesting!
A new offer was put together in short time and paperwork was signed in July 2015. We now have full management of the portfolio, with contracts in place that allow us to complete the purchase process at a future date.
For Nikki, our method released some up-front equity almost immediately and without the cumbersome and less efficient conventional sales process. Moving the property portfolio on also gave Nikki needed space and freedom to focus on her booming IT business and family life.
During a recent conversation about the portfolio I asked Nikki how she felt things were going and if she were to write a few words about the sale of her property portfolio, what would she like to say?
Here is how she replied:
“I have been working with Mark and the team at Sell My Property Portfolio and Welcome Homes now for over 6 months. I decided to lease to sell a portfolio of 15 properties and since I made that decision, they have made the whole process incredibly easy.
Mark and his team have done everything possible to make my life easy, including ensuring that my legal costs were as low as possible and contacting all of my Letting Agents and tenants about the change in management to save me the effort. They also spent a lot of time with me throughout the contracting process and we happy to answer lots of my naive questions and concerns to put my mind at ease.
I have found everyone at Sell My Property Portfolio to be refreshingly open, honest and fair in all of their dealings with me and can recommend them 100% to anyone thinking of selling some or all of their portfolio.”
Nikki A. – Solihull
Estate agents – how do you deal with a landlord who wants to sell all or part of a Buy-To-Let Portfolio without fuss or drama and at a reasonable price and pace?
In our experience of working with many estate agents throughout the country getting to grips with selling a property portfolio can turn out to be the proverbial ‘elephant in the room…’ what is the best way to sell it?
Well, whilst the idea of the commissions from sale might be attractive, the work entailed can be quite daunting… Now, let’s add to the workload those inevitable questions about capital gains tax, the challenge of managing landlord expectations when selling portfolios is not your forte and tuning in to the fundamentally different approach of the portfolio buyer (when compared to the more often met home-buyer), selling a property portfolio can quickly slip off your priority list. You may even start to question if it’s all really worthwhile. You will know that on average it can take an estate agent more than 9 months to sell a property portfolio of 5 or more connected units! We have dealt with portfolios of 25 and more that had not been sold in 3 years!
So, what if you could make one call to a company whose directors have many years of specialist experience in this field; a company that works with and understands the needs of both client and independent estate agent?
Simply stated, we buy property portfolios and if you have a client who is selling, then we are ready, willing and able to help.
The way we work is straightforward. We buy for ourselves, sometimes cash with a discount, and sometimes at full market value, depending on the seller’s needs and willingness to consider alternatives to a quick hard cash deal. We can and do buy portfolios in negative equity or with rent arrears. If the portfolio isn’t for us, we have connections it will suit.
Discretion is key to what we do. We operate seamlessly and in concert with you to simplify the process and create a bespoke sales solution for your client. Sound good? The reality is even better.
What this means for you is a superb result: an efficient sale, in good time and a single point of contact with a genuine and discreet portfolio buyer. In fact, you may have just stumbled upon the best way to sell a property portfolio today.
Fergus and Judith Wilson…much has been written about them of late, they have even been dubbed Britain’s ‘buy to let king and queen’. Having toyed with the idea of selling their huge property portfolio for several years they are now realising their exit strategy and dismantling their empire to cash in.
News first began to emerge of the couple’s plans to sell their property portfolio back in 2008. Many property investors will remember this year with little fondness. The financial crisis was truly upon us and, like many, even the Wilsons were up against it and seemed trapped by their portfolio.
Finding a Single Buyer for a Buy to Let Property Portfolio
Quite simply, they struggled then to find a single buyer; and even now they are forced into selling their portfolio off in smaller blocks and chunks. A time consuming process.
Like the majority of property investors looking to sell a portfolio, the Wilsons have mortgages to settle and a hefty Capital Gains Tax bill. They hope to walk away with a healthy profit at the end of the day, but still, imagine how much simpler life (and profitable) the disposal could be if they had a single buyer and a strategy to mitigate their CGT.
The Wilsons have recovered from the financial crisis that occurred and left many property investors high and dry, but what if you have not been so fortunate? What if you are in a position where an exit strategy seems impossible, or too costly to consider, but you want to close the door on property portfolio ownership?
What if Selling Your Property Portfolio….
Maybe you just want to maximise the return on those years of hard work… wouldn’t reducing your CGT liability be a boon if it were possible?
What if the Wilsons knew that there was an alternative, that they could find a single buyer, that there could be one straightforward transaction and a way of minimising their CGT liability? What if they had known of a way to have disposed of their portfolio whilst it was in a less than healthy position? Would they have taken it?
Of course neither we, nor you, can answer for the Wilsons but what if you stop and consider these questions of yourself? What would your answer be?
If you are thinking “can I sell my property portfolio?” then we would like to suggest that the answer could be a resounding “Yes”.
The best way to find out is to make contact with us today…..
Many of the landlords contacting us through our website are professional people, successful in their chosen career, but with neither penchant nor passion for property. Does that sound like you?
Your personal experience may have reinforced the fact that owning a property portfolio is not as passive as it was sold to be. In other words, property portfolio ownership becomes, for many professionals, a distraction. The reason for this is quite simple: without the proper attention and focus, a property portfolio can become an unwelcome dictator of expenditure rather than a desired generator of passive income. It’s difficult to pay proper attention to a career, and a to property portfolio at the same time.
Having bought at the height of the market, some professionals own property portfolios which give them little wriggle room. Selling through an estate agent who deals with single units is not an option.
One doctor we were chatting with recently had a portfolio of 4 flats in good areas but was suffering from high agent fees, stagnant values and poor tenant management. This toxic cocktail created a debilitating headache, which impacted heavily on her quality of life. We were delighted to be able to help with a simple but effective ‘pain-killer’ strategy.
If you find that your property portfolio is taking away your peace of mind, and causing distraction or headache then please get in touch.
We buy property portfolios conventionally, as do many other investor landlords. We do not, however, believe, that one pill cures all. That’s why we use a range of buying strategies that could be the perfect solution for your headache. Negative equity, poor tenant management and cash-flow neutral or negative property portfolios are not necessarily a problem for us.
To discover more about the options open to you simply call 0191 372 9949 or email us on firstname.lastname@example.org
We are a team of professional, full time landlords looking to acquire residential property portfolios across the UK. One of the most important things to bear in mind is that we are not portfolio agents matching sellers with a database of buyers. In the first instance we are looking for acquisitions to add to our existing residential property portfolio.
Selling a property portfolio can be challenging. Please talk to us and let’s see what we can do to help you move on.
If you have reached the stage where you want to sell a rental portfolio, then you could find yourself facing something of a dilemma.
Depending on the end buyer, residential investment property, unlike commercial assets, often sells best with vacant possession. If your properties are fully tenanted, life can become a little more difficult. You will know that any investor buying with tenant in place will typically be looking for at least a 10% markdown on the price that could be achieved if you sold with vacant possession. The hard fact is you probably won’t be blessed with a long queue of buyers willing to adopt your tenants.
So, you may even be wondering: “How can I sell my tenanted property portfolio? Where do I find a buyer who will take them subject to the existing tenancies and pay the price I want?” You know, if your tenants go, you will still need to carry the ‘hungry mortgage baby.’ What you don’t know is how long, exactly, are your houses going to be empty? It’s this uncertainty and ‘not knowing’ that creates concern and stress.
You can’t just end a shorthold tenancy on a whim. That means if you have a buyer who expresses an interest, your tenants still have certain legal rights. If the assured shorthold tenancy still has a few months to run you can’t turf them out for a quick sale. And what if your tenant is in love with the place and just doesn’t really want to move on?
You may be hard pressed to find a buyer who is willing to exchange contracts if your tenant is still in place, especially if that tenant has shown unwillingness to cooperate, and is being awkward.
Many potential investor-buyers will negotiate hard on price if you are victim to the circumstances described above. Where does that leave you?
If you have a tenanted property portfolio that you would like to sell at a fair price, contact us.
We buy tenanted property portfolios. We will work with you and your existing tenants to resolve any challenges and difficulties you are facing right now.
Unlike other buyers, we do not demand vacant possession, and may even be able to structure our purchase to achieve the price you want.
If you have reached the stage where you want to sell a rental portfolio, but have questions about how best to do that – stop searching. Don’t become a victim to the rental property dilemma. Just contact us and let us do the rest. We buy tenanted property portfolios – painlessly.
If you have spent any time reviewing our website, you’ll have soon realised that we have quite an appetite for buying residential buy to let property portfolios.
We are actively seeking to buy more property portfolios throughout the UK now.
So if you are landlord and selling, could you let us know if your rental portfolio fits our wish-list below?
➢ Size: From 2 to 200 – larger property portfolios depending on area
➢ Location: UK wide – geographically scattered portfolios welcomed
➢ Tenants: Subject to existing tenancies or vacant – cash-flow negative portfolios accepted
➢ Condition: Any – well maintained portfolios preferred
➢ Rental Arrears: Not a problem
➢ Value: From £200,000 up to £20m – negative equity property portfolios of keen interest
Of even more importance than bricks and mortar are the portfolio owners. We are looking to tailor our purchase to your needs. Are you interested in the following?
➢ An efficient sale of your rental portfolio – we work at your pace and are transparent
➢ A fair price – we are not centred on deep discounts
➢ A range of portfolio buying strategies – to maximise the value for you
If you want to sell your property portfolio, there is a very good chance that we will buy.
So rather than just mulling over the question “How can I sell my property portfolio?” why not get in touch? Use the Contact Us Form here and one of us from the Sell My Property Portfolio team will be with you very soon.
Here at Sell My Property Portfolio we often talk about assisting those with problem portfolios and providing them the freedom to move on. Whilst we relish the challenge of taking on problem property portfolios we much prefer the satisfaction of turning those problem portfolios around. One tired landlord recently described our portfolio service as ‘property paracetamol’. It certainly solved his headache.
We’d like to place it on record, however, that we actually quite like problem-free property portfolios too!
As property professionals we understand that there will be certain essential things that you, as a portfolio owner, will be looking for when selling your property portfolio. Here they are:
• You want to deal with experienced landlords who understand your property
• You will (probably) want the maximum price possible – but surprisingly that is not always at the top of the list…
• You will want discretion
• You will want time scales that suit you – and delivery when promised
• You will be looking for full transparency
At Sell My Property Portfolio we have made those aims core to our whole approach. So if you are still thinking “how do I sell my property portfolio?” get in touch now for a free no obligation consultation. Selling your portfolio, problem or not, may be much simpler than you ever imagined.Next Page »