Property Solvers is a regulated cash home buyer, landlord group and “sell my property portfolio” specialist company with over 35 years of collective experience.
We buy both vacant and occupied commercial property / land portfolios in any condition.
What We Buy:
As direct “sell property portfolio” professionals, there will be no estate agency, legal or other house sale costs involved.
We’ll be able to get the purchase complete much quicker than selling through an estate agency or auction (although we do offer these options too).
Property Solvers have been buying homes quickly and directly from vendors for almost 2 decades.
We are the only property portfolio buying company that’s fully regulated and registered with the following bodies:
Using HM Land Registry and RICS Red Book standards, our offers are fair. You can rest assured, we’ll be completely transparent throughout the process.
Property Solvers can also help you sell your property portfolio through our online property auction.
Offering a fully-comprehensive service, we can either:
Either way, we’ll be able to list the portfolio within very short timeframes and guarantee excellent exposure (see where we advertise).
Aimed at helping landlords make an informed decision, the following guide delves into the various aspects of disposing a property portfolio.
There are many reasons why selling a property portfolio makes sense.
The most common we come across is the desire to liquidate accumulated equity.
Perhaps you’re retiring in the near future and wish to enjoy the money ‘locked-in’ the properties after years of ownership. Or you may wish to exit the property sector and explore other investment avenues.
Other reasons we often come across include:
Generally speaking, a property portfolio typically consists of 3 or more properties.
The main reason a group of properties gets classed as a portfolio when selling is the fact that they are disposed of as a whole.
This would require a buyer or buying company to acquire all the properties and agree on a single price.
This really depends on your own objectives and how quickly you need to sell.
Despite the extended timeframe, some landlords prefer to vacate each property they own and refurbish. For example, if you did this annually you will benefit from Capital Gains Tax relief (which will double if you have a spouse).
Extracted from our selling tenanted property post, the calculator allows you to weigh up the cost differences between disposing with tenants vs. refurbishing and then selling:
Selling a property in this ‘piecemeal’ fashion is best via the open market (through an estate agency or auction house).
In such circumstances, these properties are sold more as a project. First-time buyers, for instance, who are willing to do the work and put their own stamp on the home are often keen.
Another important factor to consider is how many properties you have in your portfolio.
We would suggest that anything over 4 or 5 should be sold together as a ‘whole’.
You’re likely to save a great deal of money in auction / estate agency fees and conveyancing costs, not to mention the burdens and stress that come with selling each property.
If your portfolio consists of houses of multiple occupation, mixed-use, cluster studio flats or other forms of multi-let accommodation, it often makes more sense to sell to a landlord buyer. The alternative is to engage in costly repurposing for the owner-occupier marketplace which in most cases does not make financial sense.
It’s also important to know what your plans are with the funds (or proceeds of sale).
Most of our seller clients often have other investment plans – however, if you are thinking of simply holding the cash, be sure to take note of the effects of inflation.
Ultimately, using a good estate agent will maximise the price you’ll achieve.
With 1 in 3 house sales falling through, it’s important to look for an estate agent that has experience in handling all kinds of situations – especially if you’re selling with a tenant.
However, in addition to the multiple fees (as mentioned above), another downside is that you’ll inevitably have to wait months to not only vacate each property but also list it for sale, find a buyer, go through the conveyancing / survey processes and finally complete the sale.
Another common option for portfolio landlords is to sell via auction.
The advantage is that you’ll be able to sell with or without tenants as auction buyers are often landlords themselves. The sales will be relatively faster and there is minimal chance of fall-throughs. Check our full guide to selling at auction here.
In terms of fees, Property Solvers Online Auctions charge the same as many estates would (1.5% + VAT).
However, we also have discounted rates for portfolio sellers and can also run a modern method auction which stretches out the completion time to widen the buyer pool.
Here, we’re able to ensure that buyers commit to auction conditions – meaning the chances of the sale falling through are very low.
Sell house fast companies have grown in prominence across the UK over the last couple of decades.
The good ones have significant capital to deploy and are actively looking for residential and commercial property portfolios to acquire.
The main advantage is that you’ll be able to dispose of the property portfolio much quicker than both through an estate agent or an auction house.
Most reputable We Buy Any House companies (like ourselves) will be able to complete sales within 28 days.
There will also be no legal, estate agency or auction fees to pay. You will need to check that they are definitely in a cash buying position.
The trade-off is that the offer is typically likely to be in the region of 75% of the market value of the portfolio.
With Property Solvers, we may be able to discuss a ‘best of both worlds’ option where you may not have to take a discount and we could auction part of the portfolio.
Sourcing has emerged as a niche sector within the property investment community over the last couple of decades.
Property Sources themselves are often independent agents or property investors. Indeed, some are often ex-estate agents or may have a sourcing operation as a side business to their own property investment activities.
Their work involves seeking out investment properties and building relationships with sellers like you. There are also a handful of specialist landlord-to-landlord sales companies out there.
They then take a finders fee from the buyer for brokering the ‘off market’ transaction.
These days there are courses, mentorship programmes, online networking groups / Facebook groups dedicated to helping people develop careers in this space.
It’s often suggested as a starting point for amateur property investors to ‘learn the ropes’ (passing on property sales to property investors).
Unfortunately, together with the fact that property sourcing as a business activity is unregulated, there are a lot of scams that have spawned out of the property sourcing sector.
For instance, the sourcer may be liaising with an inexperienced investor who does not have the right credentials nor the capital to purchase the portfolio. We’ve also witnessed sourcers taking holding deposits and absconding leaving all parties involved high and dry.
If you’re thinking about going down this route, ensure the sourcer is fully regulated – primarily with the Property Ombudsman (TPOS).
The more professional sourcers are also members of the National Association of Property Buyers (NAPB) and registered with Trading Standards, the Anti-Money Laundering (AML) regulatory body and the Information Commissioner’s Office (ICO).
Registration with an organisation like the National Association of Estate Agents (NAEA) (PropertyMark) also provides an extra level of kudos.
Unfortunately, this isn’t possible as you would need to be an approved estate agency or auction house.
The high subscription costs would probably not make it worthwhile anyway.
Some buyers may discuss alternative ways of disposing the properties tailored to your situation.
This is fairly common as most portfolio buyers do not have what is often a large amount of capital up-front.
Options are more commonly used in commercial property transactions but can work if your mortgage debt is particularly high or you are in negative equity.
Indeed, much will depend on your own situation and how long you are willing to wait for the proceeds of sale for the portfolio.
One of the key benefits is that you’re likely to get better prices. There may also be tax benefits and you can still let go of your responsibilities with the properties.
Nonetheless, it’s crucial that you seek good legal and financial/accountancy advice before proceeding.
Again, more common in commercial property transactions, some buyers may be willing to offer a “buy back” option at a later date.
This can mean, for example, that the buyer benefits from rental income for a set period of time and agree to sell the properties back at an elevated price at some point in the future.
Please seek out an experienced solicitor should you be considering such an option.
Naturally, buyers will want to engage in due diligence on the portfolio. This means making sure your “ducks are in a row”.
As a minimum, you should be in a position to provide the following on each property:
You should be able to confirm the following:
Note that if the Assured Tenancy Agreement (AST) is expired and the tenant is still living at the property, the tenancy is classed as a periodic tenancy (or rolling contract).
If you’re asking them to leave the property, you’re likely to face fewer challenges compared with an unexpired AST.
However, we always advise to respect your tenants and not leave them “in the lurch” – especially if they have respectful of your property and always paid on time.
As long as you can provide this information, there should not be any issues when it comes to selling with tenants.
Indeed, some landlord buyers may prefer it as there is a ready stream of regular income.
You will also receive income and cover your own overheads right up to the point of sale of the property portfolio.
You’ll also be avoiding a lot of the hassles that come with evicting tenants, particularly if they do not want to leave.
The relationship, for example, could turn sour and it’s been known for tenants to stop paying and refusing to leave. Eviction via the courts is definitely something to avoid.
Be sure to check through the signed agreements you have with tenants (typically Assured Shorthold Tenancies or ASTs).
Most have a maximum of 12 months terms, but there may be break clauses that you wish to make use of.
Although there is no legal obligation to advise your tenants that you wish to sell, we genuinely recommend it.
Some will be concerned when they learn to hear that their landlord is selling, especially if they wish to remain in the property.
Others (perhaps those residing in multiple occupancy units) may be used to regularly moving home.
Either way, it’s worth writing to the tenants to explain that you are selling.
Invite them to contact you or your property manager directly to address any concerns. Most will want to know if they will be allowed to remain and who the new landlord will be.
Others may be happy to move out and be fully cooperative.
You may find out that the tenants are interested in buying the property from you privately.
If this is the case, be sure to check their eligibility for mortgage finance and whether they have a sufficient deposit amount before moving forward.
Much will depend on your own objectives but, as with many bulk purchases, most buyers will want to negotiate some kind of discount on the fair market value of your properties.
How much often depends on how quickly you’re looking to sell the properties.
For instance, if you’re spreading the sales over a longer period – perhaps to different buyers – then you can expect to achieve a higher gross amount. As discussed above, there will be extra financial implications of doing this plus time and opportunity cost factors to consider.
On the other hand, selling the properties collectively may see you accepting a below market value price in return for speed and efficiency.
Nonetheless, as a landlord yourself, you would understand that investors will look at the acquisition as a business and make a judgment call on the key financial metrics of your portfolio to form the basis of an offer.
A vacant property is likely to fetch more money relative to one that is tenanted. This is because you’re opening up the pool of potential buyers to the wider market.
The downside is that you’re likely to lose out on rental income, a period that could drag out should the sale take longer than expected.
You may be able to sell with vacant possession and get the best of both worlds. However, this can be a tricky / awkward situation as ultimately you’ll have to request that tenants provide access to the property for viewings. A good estate agency / auction house should nonetheless be able to manage things appropriately (through open days to minimise the disruption, for example).
With such a large asset liquidation, you can be certain that HM Revenues & Customs will want their share of tax.
Much will depend on how your rental properties are held.
If you own them in your own name, in addition to remainder income tax obligations, the main liability when selling is Capital Gains Tax (CGT).
Some landlords choose to sell one property every year in order to take advantage of the annual allowance (doubled if the property is owned in joint names).
If the properties are held in a company structure, you will sell the shares which will have its own tax implications (test).
Note that there may be other tax implications if your affairs are slightly more complex, say you have trusts or other businesses involved.
Selling a property portfolio does not need to be complicated.
In terms of moving forward, we would suggest having the following prepared before speaking with buyers;