Landlord Sales Agency is implementing a strategy that utilises the equity tied up in properties to manage the costs associated with selling. This approach aims to reduce risks and improve the overall outcome for landlords.
The agency views equity as a resource that can be deployed to remove obstacles and fund the sale itself, rather than something to be preserved at all costs. This can include covering expenses such as legal fees, tenant incentives, refurbishment, and holding costs like mortgage payments and council tax.
This method is presented as an alternative to sellers having to find cash for costs before, during, and after a sale. It is suggested to be a more efficient use of capital compared to paying upfront to arrange vacant possession, redecorate, market, and find a buyer.
In one instance, a landlord with a seven-property portfolio in the North East used this approach. Four properties were sold to a mix of investors, first-time buyers, and existing tenants, with different strategies applied to each. Three properties did not sell as interest did not meet the reserve price, but the landlord decided to keep them, collecting rent throughout the process.