If you’re trying to sell a HMO and getting nowhere — you’re not alone. Many landlords are finding that even profitable, fully-let HMOs are sitting on the market far longer than expected.
And trying to sell with vacant possession is a risky option that leaves some landlords running half empty property for years.
But that’s only the start of the difficulties selling HMO properties.
Why? Because once it’s sold you are very likely to have a lot of complications to navigate during completion.
Why It’s So Difficult:
- Selling with Vacant Possession – as long as all tenancies are at least four months old or periodic, HMO landlords can evict tenants using a Section 21 notice if all legal requirements are met (deposit protection, EPC, gas safety certificate, and How to Rent guide). However, if some tenants don’t leave by the notice date, you’ll need to apply to court for a Standard Possession Order, which can become expensive and result in landlords running half empty HMO properties for several months. Landlords cannot serve a Section 21 notice if the HMO is unlicensed or if the landlord does not have a temporary exemption from licensing. Selling HMO properties with vacant possession is hard and only going to get harder with the abolition of Section 21.
Selling with tenants:
- Licensing Headaches – Every HMO needs a licence, but they’re not always transferable. That means buyers must apply for a new one — an added complication many want to avoid.
- Legal Risks – Buyers inherit all existing tenancy agreements, whether they want to or not. That can cause delays, problems with finance, and uncertainty.
- Financing Issues – Many lenders won’t finance HMO purchases with tenants in situ unless it’s a commercial mortgage, which significantly limits your buyer pool to cash buyers only.
It is usually experienced landlords who buy HMO with tenants in situ and, as you would expect given the issues stated above, HMO buyers are often looking for deep discounts – especially if the property also needs ‘refreshing’ or doesn’t meet EPC grade C.
Even with a discount; issues around tenants, income, and licensing that arise after a sale has been agreed often leads to huge delays in the conveyancing process and agreed sales collapsing. There is no specific figure for HMO sales collapsing after a sale has been agreed but with an average 31% of all house sales collapsing, it is fair to assume the figure for HMOs, which are much more complicated, is significantly higher.
But There Is a Solution…
Sell your HMO quickly and securely through Landlord Sales Agency.
We work with a number of serious investors who understand the value of tenanted properties and have access to a £300,000,000 buying fund. They buy quickly and are happy to secure the sale as soon as their offer is accepted due to the work we do, collecting tenant information and ensuring all licensing and legal requirements are in place.
Experienced landlords and property investors will be looking for a discount on any property they buy – esp HMOs with their added risks – but by marketing properties to a number of investors, the competition between them drives up their offers and we find the best price possible.
What’s more, because we are experts in working with tenants and have a 100% success rate of helping tenants to relocate, we also open up the slower option of selling with vacant possession without the need to go through eviction proceses to open up the market to other cash buyers and owner occupiers, leaving the seller decide between higher sales or faster completions.
All sellers have to do is contact us and we’ll take care of all the rest. Sellers normally walk away with 85% of the high street value for a fast, easy and secured sale. We are confident it’s the best offer you’re going to get to sell your HMO.
- Buyers ready to proceed with a £300 Million purchase fund
- Sales complete much faster with our ‘from start to finish’ management
- No need to evict or make costly changes
- Collect rent right up to completion
Speak to our expert team today and get a no-obligation offer.
We’ll give you straight answers and a real route to a fast, fair sale.
