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Property Portfolio Sales
Looking to sell your property portfolio?
Whether you wish to sell for tax purposes, ill-health or just simply because you need to off-load your buy-to-let portfolio, we are here to help you.
From wanting to retire to needing to dispose or liquidate some capital, there are many reasons why a landlord would want to sell their portfolio. It may be either a portion or your entire portfolio, and sometimes a few investors will have an exit strategy planned for this instance.
If you are in any of these situations you may need to be aware of all of available choices and consider what is most important: is it selling up as soon as possible or is it getting the maximum amount of money for your property portfolio that you can?
What do I do now?
Instead, the more regular approach is to sell your property portfolio to a professional investor or on the landlord market.
There are many options that you can use to sell your property stock; it could be either in bulk wholesale, to investors or landlords directly, an approved auction specialist or an investment agency.
We, at Quick Property Sale, have no restriction on the type of portfolio we can purchase, from a small two unit-size investment up to a much larger property portfolio – residential, commercial or a mixed property portfolio. Quick Property Sale has purchased residential and commercial portfolios from builders, investor groups and individual landlords.
Top tip: to be able to sell your portfolio it would be prudent to engage an experienced solicitor who has executed property portfolio sales before.
Preparing your portfolio for sale
No one else is more interested in the sale of your property portfolio than you are. Show casing your property portfolio, improving appearance and carrying out any obvious maintenance and repair work will enhance any possible curb appeal. Even small considerations such as removing tenant’s old refuse, weed spraying, a garden tidy-up, cleaning communal areas, replacing missing signs and house numbers etc. This will all certainly help with generating potential viewings and a quicker property sale.
Selling single investment properties over time
This is the process we use if you would prefer to sell individual investment properties rather than a full property portfolio. You may only want to sell a property per tax year to utilise and gain from your personal CGT (HMRC Capital Gains Tax) allowance.
Sell in one transaction
If you have accrued a buy to let housing stock then your exit strategy becomes more relevant as time goes by. Here we delve into four avenues that you can use to sell your portfolio:
Use an approved auction house
All types of properties, commercial premises, development land, property business and freeholds can be sold and purchased at auction. A property portfolio would fall into the ‘property business’ category, this is because a portfolio is an income generating asset – similar to any other business. You can offer your properties for auction but that will not always guarantee a good price.
The auctioning process: The entire auctioning process for any auction lot can take around 5 to 10 weeks to complete. This time duration includes a month before the auction date (viewings) and a month afterwards. The main advantage of selling a property portfolio at auction is that as soon as the gavel drops – it creates a contract, this seals a commitment and becomes a definite sale, so there are no U-turns for the buyer or vendor.
At this stage the purchaser has to deposit 10% immediately to the auctioneer, they then have to complete the sale (by paying the outstanding 90% balance) within usually 28 days from the date of the auction. If the buyer does not complete the sale within the time frame they can lose their 10% deposit.
Choosing an auctioneer: Read reviews or use a recommended auction house that specialises in auctioning commercial units, and check that they are proficient at selling portfolios, on a regular basis. If the right kind of buyer is not in the auction room (or bidding by proxy) on the day you could lose out on a sale.
Your choice of auctioneer may depend on where you live or where the portfolio is located. Any established auctioneer should explain their selling process to you so you can get a thorough understanding, they will market your properties via their website, web portals and auction catalogue. Request a selling quotation – so you can compare this with other auction property services’ fees.
Also, many large estate agent chains will have an in-house auction service so you could take a look at these.
Selling landlord to landlord
There are many landlord and investor buyers who would be very interested in extending their own portfolio for the right price. Selling your portfolio with healthy long term tenants in situ appeals to serious buyers, as they do not want to inherit properties with voids.
Sell to a property investor
This way you can sell to a private property investor; this could be considered the best route as investors usually complete a purchase quicker and may be able to pay in cash. By selling direct to an investor, and not an agency, there are less external influences that could scupper a deal. However, if you are introduced to a buyer through a third party (they will usually expect or need a referral fee for this) but they would usually be savvy investors looking for a bargain. On this occasion, its best to step back and ensure you think about your sale and do not end up selling the portfolio too cheaply.
Keep in mind some of the benefits of choosing a cash buyer investor:
- Any tenants are not interrupted by endless viewings as this would be a single inspection visit.
- The buyer takes over the responsibility of the tenants straight away on exchange of sale particulars.
Beware! If the purchaser is not a serious cash buyer you maybe left hanging around waiting for them to raise capital to proceed and then complete on a sale.
Sell on a professional platform
Another option to look at is marketing through a national landlord association to landlord medium or investor online forum. This will focus and help attract the right buyers for your property portfolio. You could engage a property advertising agency, as they would have a number of strategies to get the right buyers, giving exposure to a much larger audience of possible clientele buyers.
You can also publicise the sale of your property portfolio via online social media to as many potential buyers as possible, this is a cheap alternative and does not involve paying any sale commissions. Although, as there are no filters, this does have a down-side of attracting unwanted time wasters.
Do you have current tenants?
It is worth noting that you may have to conduct multiple visits from various buyers depending on the amount of interested clients. So, it is wise to inform your tenants of any pending sale and have them on your side in preparation for any future viewings. Not being able to show your portfolio could impact on the ability to sell.
Some investors would be happy to purchase without comprehensive viewings and with the current tenants in situ, while others may wish to buy with ‘vacant possession.’ Buying with tenants already in place avoids getting into legalities of vacating the tenants altogether (unless they have historical rent arrear payments or unsociable bad behaviour).
There are always going to be costs when looking to sell your portfolio. You will need to pay solicitors, marketing costs and HMRC amongst other things. Capital gains tax will be your largest cost, where selling your properties can put you into the higher tax bracket. Capital gains tax for higher rate tax payers is currently 28%.
Frequently Asked Questions
What is considered a property portfolio?
Is selling my portfolio as a whole worth more than selling properties individually?
What tax do I need pay on my property portfolio sale?
How do I value my property portfolio?
What happens if you sell a property portfolio in negative equity?
Is the property market flooded with property portfolios?
Yes quite possibly! Landlords in England & Wales are giving up on owning property as the market becomes more difficult to navigate. A recent report (2022) suggests that investors plan to sell nearly 7% of their property stock, while only 16% plan to purchase additional ones, a third of all landlords have plans to cull their holdings by a quarter over the next 12 months. Legislation seems to be burdening the landlord more and more, meaning if landlords are selling up there will be less private rentals available for renters.
The recommendation is that you research the market and examine all of you selling routes before committing to any of them, and be aware of all of the options as it can possibly affect a lot of imperative aspects. These aspects can change from the amount you will be paid for your portfolio to the speed of concluding your end sale.
However before making any final decisions it is necessary that you analyse the portfolio current value for comparable prices and chose the avenue that gives you, what you think, is a fair deal. With all these considerations taken into account, you will be able to make a well informed decision.
We hope you have found this page on selling your property portfolio through Quick Property Sale helpful and we can also discuss if you have a more complicated situation that requires detailed attention and solutions. Do get in touch if you need any information of any kind.
Please note: Any offers made are customer or property specific and will vary. The valuation you can achieve for the sale of your property will depend on a number of variables, these include property type, condition, location, as well as your time scales and your financial position.
Remember we can offer you a free, no obligation quote, as well as provide you with a variety of alternative solutions you may wish to consider.