A separating couple needed to sell their tenanted buy-to-let so they could both move on, without unsettling the family who lived there.
Claire and Paul's case at a glance:
Separated two years earlier, and the divorce was mostly settled
A jointly owned buy-to-let was the last asset left
On the open market as a tenanted sale, but it hadn't sold
Paul couldn't buy a home until the equity was released
Both wanted their tenant and her children to stay
Completed within three weeks
The couple, let's call them Claire and Paul, had separated two years earlier. Claire was still living in the family home, and Paul was renting. Between them, they also owned a third property, a buy-to-let with a tenant in it.
Most of the divorce had been settled, and the rental was the last piece of the puzzle. Paul couldn't release his share of the equity, so he was stuck renting with no way of buying a home of his own.
The couple needed to sell the property, but didn’t want to move their tenant on.
Their tenant was a mum with a couple of children. They both felt a loyalty to her and didn’t want the end of their marriage to unsettle another family's home.
They'd initially listed it on the open market, but it hadn’t sold to a landlord as they had hoped and had been up for sale for a long while. That’s when they called me.
I made a verbal estimated offer over the phone, then arranged to see the property. So the tenant wouldn't be worried by a stranger looking round, I viewed it as an insurance assessor. Once I'd seen it, I put my offer in writing.
As these things go, they were reasonably amicable with each other, but even an amicable split needs a lot of care. I spoke to Claire and Paul individually and kept each conversation to itself. In one call, one of the two had mentioned going on a date that weekend, for example.
We completed within three weeks.
Once the sale had gone through, Claire came with me to see the tenant. She apologised for not telling her sooner. They hadn't wanted to worry her while nothing was certain. Then I introduced myself as her new landlord.
I made a few upgrades to bring the property up to my rental standard.
Paul used his share to buy a flat of his own, and Claire stayed in the family home. The tenant is still with me today.
Selling a jointly owned buy-to-let during divorce or separation
A tenanted rental is often the last asset left to resolve, and it can hold up a settlement for months. On the open market, the buyers for a tenanted home are mostly other landlords and investors, so finding the right one can take time.
Selling with the tenant in place to a cash buyer means:
no need to ask the tenant to leave, or to cover a void period
a sale that can complete in weeks rather than months
offers in writing to both owners, with each conversation kept confidential
a tenant who keeps their home
For family solicitors and mediators, it can be a way to close the last open item without either party having to manage a tenant, an eviction or a long sale.
For Claire and Paul, it meant they could both move forward, and for their tenant, nothing about home had to change.