Points to Remember When Selling a Buy-To-Let Property
With the tax relief in the UK being phased out in the near future, keeping a buy-to-let property may no longer be a profitable option. This may cause many landlords like yourself to consider selling a buy-to-let property to keep finances fluid and possibly invested in other more financially viable plans.
Selling a buy-to-let property is not a small undertaking and you will want to gather as much information on the subject before embarking on this undertaking. The following article will cover a few essential factors to keep in mind when making your sale that could enhance the favorability of the transaction.
Consider the Best Sales Time
As the tax relief changes are gradually instituted, landlords will be allowed to deduct less and less of their financial costs of property maintenance from their taxable profits. As for 2018, only 50% of costs can be deducted forms taxes and this figure is going to drop to less than 0% after 2020. So, on the one hand, the faster you can make a sale, the fewer costs you will be accumulating in the long run.
On the other hand, property prices have begun to behave unexpectedly throughout the UK. In some places the property prices are steady or rising, in others they have come to a standstill and others till have fallen drastically. Taking some time to research the history and possible future of property prices in your area can give you some insights in choosing the best time to sell.
For example, if you have noticed that prices have been fairly steady recently and only just begun to increase, it could be a good time to make a sale and you will want to move quickly. Which brings us to the next point.
How to Deal With Current Tenants
What if you have tenants occupying your property at the time? This will need your full attention as there is a specific process that will need to be followed if you hope to evict them and make the sale on schedule. Furthermore, your eviction notice will need to be handed in two months in advance.
Evicting tenants can be a difficult task and it would be advisable to get help from a qualified property solicitor who has experience in these delicate matters. If the eviction process is not handled properly, it could potentially lead to complaints of harassment and this can greatly complicate the matter